The European Financial Reporting Advisory Group (EFRAG) has released a series of 20 educational videos on the first set of draft European Sustainability Reporting Standards (ESRSs). These videos provide some useful guidance in the form of short "glimpses" and longer "educational sessions" which will help viewers gain an understanding of the requirements as set out in the ESRSs. The ESRSs , which were subject to public consultation in 2022 set out the sustainability reporting requirements which will be phased in over time for different kinds of companies, with the first reporters doing so for years commencing on or after 1 January 2024.

Welcome to this week’s Technical Roundup.  In developments this week, the CCAB-I Insolvency Committee has recently made a submission to the Department of Enterprise, Trade and Employment on their call for views in response to the proposal for an EU directive harmonising certain aspects of insolvency law; the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, held its plenary meeting on 22/24 February and has now published the outcomes on its website. Read more on these and other developments that may be of interest to members below. Audit and Assurance The Irish Auditing and Accounting Supervisory Authority (IAASA) has published its 2021 Annual Audit Programme and Activity Report. This report provides a summary of the activities performed by IAASA during 2021 to oversee the audit profession in Ireland. The report outlines the outcome of IAASA’s quality assurance review of auditors of public–interest entities as well as IAASA’s oversight of the recognised accountancy bodies who supervise auditors of other Irish entities. Insolvency The CCAB-I Insolvency Committee has recently made a submission to the Department of Enterprise, Trade and Employment on their call for views in response to the proposal for an EU directive harmonising certain aspects of insolvency law. This submission which is available to read here was generally supportive of further harmonisation of existing avoidance actions across the EU. The Corporate & Insolvency Bar Association is hosting its inaugural annual conference on Friday, 31 March. There will be a drinks reception and dinner taking place after the conference. The conference schedule and booking details are available here. Financial Reporting The Financial Reporting Council (FRC) has published a thematic review on the Big 4 audit firms’ methodology around IFRS 9, focussing on the audit of Expected Credit Losses for larger banks. The European Financial Reporting Advisory Group (EFRAG) has released a report with the key messages and discussion points covered at the January 2023 IFASS (International Forum of Accounting Standard Setters) meeting. The International Accounting Standards Board (IASB) has issued its February 2023 update and monthly podcast. The IFRS Foundation has released its February 2023 monthly news summary which includes details of meetings held, decisions made and activities during the month. The UK Endorsement Board (UKEB) has issued a draft comment letter on the IASB’s exposure draft International Tax Reform – Pillar Two Model Rules. Comments are welcome by the UKEB until close of business on 3 March 2023. Sustainability Momentum builds for corporate ESG disclosure and assurance, yet reporting inconsistencies linger. The largest global companies continue to show momentum on corporate reporting and related assurance involving environmental, social and governance (ESG) issues, according to a new report from the International Federation of Accountants (IFAC) and AICPA & CIMA. Significant hurdles remain, however, when it comes to providing consistent, comparable and high-quality sustainability information for investors and lenders. CDP (Carbon Disclosure Project) Ireland has published its Annual Report 2022 "Alignment of Climate, ESG & Financial Disclosures: Global Sustainability Standards and Regulations align to Provide Greater ESG Transparency and Focus". The report is available at https://lnkd.in/eUr4tsrH and provides insights into how Irish companies are addressing ESG topics.  CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. In Accountancy Europe’s latest article from their ‘Insights from SME accountants’ series, Anton Schmidl and Thomas Wallner from Crowe SOT in Austria discuss how they support SMEs with their sustainable transition, including what auditors and accountants can so to help SMEs. Anti-Money laundering/Sanctions The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, held its plenary meeting on 22/24 February and has now published the outcomes which can be accessed on its website here. These include suspension of Russia's membership of FATF, strategic initiatives on beneficial ownership and dealing with High-risk and other monitored jurisdictions. The European Commission welcomes the Council's adoption of a 10th package of sanctions against Russia and those that support it in its illegal aggression against Ukraine. 24 February marks one year since Russia's full-scale invasion of Ukraine and 9 years since the beginning of Russia's illegal invasion and occupation of Ukrainian territory. This package is turning up the pressure in response to Putin's brutal war, including viciously targeting civilians and critical infrastructure. Other Areas of Interest Decision Support Service It has recently been confirmed that a full commencement of the Assisted Decision-Making (Capacity) Act 2015 will take place on 26 April 2023. The full operationalisation of the Decision Support Service  will then take place when people can interact with the new service. The DSS teams are available to answer any queries in advance of its commencement on 01 2119750 or queries@decisionsupportservice.ie. NI Charity Consultation The Charity Commission for Northern Ireland is developing a new strategic plan alongside a new engagement strategy, both of which are being undertaken following the Independent Review of Charity Regulation commissioned by the Minister for Communities in January 2021. The European Commission published on 15 February a Handbook of good practices in the fight against corruption. The goal of this handbook is to map a variety of anti-corruption practices in EU Member States (MS) that have proved to be useful in solving problems related to corruption, and which can inspire similar initiatives elsewhere. For this purpose, one good anti-corruption practice either established or innovative, with positive impact aspirations in each EU Member State was selected, and clustered into eight types of anti-corruption approaches. Readers may recall our news piece on the publication by the Law Reform Commission of a  consultation paper on liability of clubs, societies and other unincorporated associations. As the consultation paper has generated considerable interest, and to facilitate as many consultees as possible making submissions in response to the questions posed in the consultation paper, the Commission has decided to extend the submission deadline from March 2023 to 15 May 2023. Accountancy Europe has released a factsheet highlighting the main provisions in the OECD Pillar Two GloBE (Global Anti-Base Erosion Rules) proposals. For further technical information and updates please visit the Technical Hub on the Institute website.  

On 23 February 2023 the Council of the European adopted its tenth package of sanctions against Russia. You can read more details on the tenth package on the European Commission website here a press release on the tenth package here and  Questions and Answers: tenth package of restrictive measures against Russia here.

Please join us in Chartered Accountants House on 29 March for some free, in-person events to mark the Periodic Review of FRS 102, FRS 105 and other UK and Irish accounting standards. In December of last year, the FRC released  FRED 82 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs. This Financial Reporting Exposure Draft (FRED) forms part of the periodic review of the standards which happens approximately every five years. The FRED is now open to consultation and comments are requested by the FRC by 30 April 2023. We are delighted to be welcoming Jenny Carter and Stephen Maloney from the FRC to Dublin for two events to help inform members on the proposed changes. From 12:30 to 13:30 they will be giving a summary of the key changes proposed to the standards in their Summary presentation    If you would like to hear more about the proposed changes, including changes to lease accounting and revenue recognition, they will also be holding some Roundtables from 14:00 to 16:15 Members are invited to attend the presentation and roundtables. If you want to register for these you can do so using the above links.

Welcome to this week’s Technical Roundup.  In developments this week, the Financial Reporting Council (FRC) has published a myth buster to dispel common misconceptions about Corporate Governance and Stewardship; the National Crime Agency (NCA) in the UK has published its first SARs (Suspicious Activity Reports) Booklet of 2023 which showcases further positive feedback from law enforcement agencies and includes a number of case studies highlighting excellent outcomes derived from SARs. Read more on these and other developments that may be of interest to members below. FRS 102 Periodic Review- Meet the FRC Please join us in Chartered Accountants House on 29 March for some free, in-person events to mark the Periodic Review of FRS 102, FRS 105 and other UK and Irish accounting standards. In December 2022, the FRC Published FRED 82, which contains the proposed amendments to UK and Irish accounting standards. These include some significant changes in the areas of Revenue and Leasing. These events will help attendees understand the proposed changes, with presentations from the FRC and include a summary presentation and roundtable sessions. Financial Reporting The European Financial Reporting Advisory Group’s (EFRAG) draft comment letter in response to the IASB’s Exposure Draft 2023/1 International Tax Reform—Pillar Two Model Rules (Proposed Amendments to IAS 12) remains open for comment until 27 February 2023. Sustainability The International Sustainability Standards Board (ISSB) has issued its February 2023 update and podcast. The meeting, amongst other matters, focused on redeliberating the Exposure Drafts IFRS S1 General Sustainability-related Disclosures (draft S1) and IFRS S2 Climate-related Disclosures (draft S2) and to decide whether to begin the balloting process for IFRS S1 and IFRS S2. The ISSB discussed the sources of guidance an entity would use to identify sustainability-related risks and opportunities, and related disclosures and tentatively decided that the effective date of IFRS S1 and IFRS S2 would be effective for annual reporting periods beginning on or after 1 January 2024, and that early adoption would be possible. The ISSB will now commence the balloting process and expects to issue the Standards towards the end of the second quarter of 2023. Anti-Money laundering/Sanctions The Temporary Protection Directive (Council Directive 2001/55/EC) was activated for the first time by the E.U Council on 4 March 2022. Under it, the Irish Dept. of Justice began granting temporary protection to persons fleeing the war in Ukraine on 9 March 2022. To date some 75,000 people have been given temporary protection in Ireland and the Dept. recently announced that it was extending the temporary protection for another 12 months to March 2024. You can read more about this extension of temporary protection on the Dept of Justice’s website. The National Crime Agency (NCA) in the UK has published its first SARs Reporter Booklet of 2023. The NCA writes that the booklet showcases further positive feedback from law enforcement Agencies and includes a number of case studies highlighting excellent outcomes derived from SARs. You can access the SARs Reporter Booklet here. A revised and updated 'Guidance on Submitting Better Quality SARs' from the UKFIU has been published and is available on the National Crime Agency (NCA) website. It aims to provide all reporters with guidance on how to submit better quality SARs to the NCA and the booklet should be read in conjunction with guidance found on the NCA website https://www.nationalcrimeagency.gov.uk/. Governance and stewardship The Financial Reporting Council (FRC) has published a mythbuster to dispel common misconceptions about Corporate Governance and Stewardship. The document addresses several frequently asked questions, such as:  What is corporate governance? What do we mean by stewardship? Does the Corporate Governance code give the FRC powers to enforce against Directors? Protected Disclosures amendment legislation Readers may recall that the Protected Disclosures (Amendment) Act 2022 was signed into law in July 2022 and commenced on 1 January 2023.The  Dept of Public Expenditure (DPER ) has a useful webpage with information on the legislation. The DPER protected disclosures webpage has recently been updated by the addition of a further booklet (to the two already there) on “Protected Disclosures Act Key messages for workers”. Other Areas of Interest Readers may be interested in the “Dear CEO letter “issued recently by the Irish Central Bank (CBI). It sets out some detail of CBI’s regulatory and supervisory priorities for 2023 including authorisation processes, Individual Accountability Framework and supervising firms’ compliance with Anti Money Laundering/Combating the Financing of Terrorism obligations and administering and enforcing financial sanctions. For further technical information and updates please visit the Technical Hub on the Institute website.    

Welcome to this week’s Technical Roundup.  In developments this week, following public consultation, IAASA has issued a revised version of ISA (Ireland) 600 Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) and conforming amendments; the Financial Reporting Council has announced an increase in the number of signatories to the UK Stewardship Code following the publication of its updated list. Read more on these and other developments that may be of interest to members below. Financial Reporting The European Financial Reporting Advisory Group (EFRAG) has released a podcast on its recent discussion paper Accounting for variable consideration – from a purchaser’s perspective. EFRAG has also released a summary report on its recent conference entitled “Where is Corporate Reporting heading?” Auditing IAASA issues a revised version of ISA (Ireland) 600 Following public consultation, IAASA has issued a revised version of ISA (Ireland) 600 Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors) and conforming amendments. https://iaasa.ie/iaasa-issues-a-revised-version-of-isa-ireland-600/ Sustainability The Financial Conduct Authority in the UK has recently published a discussion paper on finance for positive sustainable change: governance, incentives and competence in regulated firms. The paper does not make any concrete proposals in terms of new regulatory rules, but it seeks views on how firms should develop their arrangements for governance, incentives and competence in sustainability. The FCA has requested responses to the paper by 10 May 2023. The Department of Enterprise, Trade and Employment is holding a series of free events for businesses which will highlight the opportunities and challenges presented by digital transformation and decarbonisation. The first event will be hosted in the North-West on Friday 3rd March and is open for businesses based in Donegal, Leitrim and Sligo. You can read more and register here. Small businesses and entrepreneurs will have the opportunity to sample hundreds of events helping them to start or grow their business as part of this year’s Local Enterprise Week which takes place from March 6th to 10th. Click here to read more about it and here for more details of the events  including spotlight events for example one on Green, Sustainability & Competitiveness on Thursday 9th March from 2.30pm to 3.30pm. Insolvency The Institute recently hosted a webinar on Options for directors in financial difficulty. It outlined directors’ duties and obligations when a business is in financial difficulty, and possible consequences for directors for not adhering to those duties and obligations. There was also discussion on the recent insolvency related changes to Companies Act 2014 on the expansion of directors’ duties and a Q&A session. The recording can be accessed here. Sanctions/cybercrime The UK government recently sanctioned seven people said to be part of a Russia-based cybercrime gang under the UK’s thematic cyber sanctions regime pursuant to The Cyber (Sanctions) (EU Exit) Regulations 2020. In conjunction OFSI also published Guidance on Ransomware and Financial Sanctions and you can read the UK Government press release here . The European Union this week announced that it is considering its 10th package of sanctions against Russia. Click here to read the press release on the proposed 10th package. They propose to further restrict the export of dual use and advanced tech goods and to add third country entities to the Russia dual use sanctions. They will also look at setting up an overview of all frozen assets of the Russian central bank held in the EU and will look to tackle circumvention of sanctions. We will bring further news of the sanctions when available. The European Union Agency for Cybersecurity (ENISA) and CERT-EU, which is the Computer Emergency Response Team of all the EU institutions, bodies and agencies (EUIBAs), have issued a joint publication to alert on sustained activity by particular threat actors which they say pose a significant and ongoing threat to the European Union. Click here to go to the ENISA webpage where you can access a copy of the publication and the recommendations in it. Other Areas of Interest The FRC has announced an increase in the number of signatories to the UK Stewardship Code following the publication of its updated list. The list now includes successful applicants who submitted their reports at the end of October 2022. The regulator received 105 applications, of which 88 were successful, taking the total number of signatories to 254, up from 235 in September last year. This includes 179 asset managers, 58 asset owners and 17 service providers. The additional signatories bring the total assets under management of the list to £46.4tn, up from £40.7tn. The European Central Bank recently issued its ECB February 2023 Supervision newsletter where there a number of topics readers may find of interest including a piece from the Deputy Governor of the Central Bank of Ireland on whether banks are overregulated, an article on crypto-assets: a new standard for banks and an article on banks’ digital transformation. Section 225 of the Companies Act 2014 introduced a requirement for a directors’ compliance statement (DCS) into Irish law. Now that the DCS has been operational for several years, the Company Law Review Group (CLRG) is reviewing it to determine its effectiveness in achieving compliance and its usability and, if appropriate, to make recommendations as to how these might be enhanced in the interest of good corporate governance. Readers may know that the CLRG is a statutory advisory expert body charged with advising the Minister for Enterprise, Trade and Employment on the review and development of company law in Ireland. The CLRG has issued two surveys, a directors’ survey and a practitioners’ survey, to get feedback from directors of affected companies and practitioners (auditors, financial directors, solicitors, and so on) who are involved in the preparation of the annual DCS. Please see here for more information from DETE on the review . Please access the directors’ survey here. Please access the practitioners’ survey here. The closing date is 28 February 2023. DETE's February 2023 Enterprise newsletter is now available. It contains information on the survey referred to in the preceding paragraph and a number of consultations which DETE is currently involved in including the consultation on which we brought you details in the last few weeks seeking the views of interested parties on the member state options in the Corporate Sustainability Reporting Directive. As a reminder of the details you can click here for a recent Institute news item with some more information on the Directive. The Irish Minister for Justice this week obtained approval from Government to close the Immigrant Investor Programme (IIP) to further applications from close of business on 15 February 2023. He said that all programmes are kept under review and the Government has also taken on board a number of reports and findings from international bodies such as the EU Commission, Council of Europe and OECD on similar investment programmes. You can read more in the press release from the Dept of Justice website. For further technical information and updates please visit the Technical Hub on the Institute website.