Welcome to this week’s Technical Roundup.
In developments this week, IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been re-published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation; the Financial Reporting Council has announced the launch of a new initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market.
Read more on these and other developments that may be of interest to members below.
Financial Reporting
The Financial Reporting Technical Committee of Chartered Accountants Ireland has responded to the Financial Reporting Council’s recent exposure draft ‘FRED 83’. The amendments proposed in this exposure draft address how deferred tax should be accounted for under FRS 101 and FRS 102 where a company is subject to the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two Model Rules.
The European Financial Reporting Advisory Group (EFRAG) has issued an updated Endorsement Status Report, which now reflects the publication of amendments to IAS 7 and IFRS 7 (Supplier Finance Arrangements) and IAS 12 (Pillar Two Model Rules).
The IASB has published the Exposure Draft International Tax Reform- Pillar Two Model Rules- Proposed Amendments to the IFRS for SMEs Standard. This follows similar proposed amendments to International Accounting Standards and FRS 102.
The IASB has issued its May 2023 update and podcast.
IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation.
The UK Endorsement Board (UKEB) has issued its draft comment letter relating to the IASB Exposure Draft Amendments to Classification & Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) for public consultation. Comments on this are requested by 26 June 2023.
The UKEB is holding some roundtable discussions on 20 and 21 June to discuss the IASB’s forthcoming Request for information on the Post-Implementation Review of IFRS 15.
This month’s International Accounting Standards Board (IASB) meeting was held on 22-24 May. The May IASB Update podcast includes:
- a summary of the supplementary meeting the IASB held on 3 May about proposed amendments to the IFRS for SMEs Accounting Standard relating international tax reform;
- progress made in the Primary Financial Statements project;
The International Accounting Standards Board (IASB) on 30 May launched a call for stakeholders’ feedback on its post-implementation review of the expected credit loss requirements in IFRS 9 Financial Instruments. The ‘expected credit loss’ model in IFRS 9 replaced the previous ‘incurred credit loss’ model, which only allowed credit losses to be recognised when a loss event occurred.
The UKEB has published a joint Draft Endorsement Criteria Assessment on
- Classification of Liabilities as Current or Non-current — Amendments to IAS 1 issued by the IASB in January 2020; and
- Non-current Liabilities with Covenants —Amendments to IAS 1 issued by the IASB in October 2022.
Comments are requested by 8 June 2023.
Audit
The Financial Reporting Council proposes to revise International Standard on Auditing (UK) 505 External Confirmations to reflect recent enforcement findings and to ensure that the standard is reflective of modern approaches to obtaining confirmations with additional material on the use of digital platforms, enhanced requirements in relation to investigating exceptions and a prohibition on negative confirmations. Comments are requested by 1 September 2023.
The Financial Reporting Council (FRC) has announced the launch of a new initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market. The Scalebox initiative aims to promote competition and choice in the PIE audit market and support the FRC's role as an Improvement Regulator.
Insolvency
The CCAB-I Insolvency Committee has recently published Technical Alert 03 2023 Changes to examinership regulations. This Technical Alert provides updates on significant changes to the examinership process following the introduction of The European Union (Preventive Restructuring) Regulations 2022 (SI 380/2022) and outlines a number of the key amendments to Companies Act 2014 arising from the transposition of EU Directive 2019/1023.
Sustainability
In its recently released publications, the International Federation of Accountants (in collaboration with the We Mean Business Coalition , Accounting for Sustainability, the Global Accounting Alliance and World Business Council for Sustainable Development) discuss how accountants can get greenhouse gas reporting in order.
Other News
The European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has published a joint Discussion Paper seeking stakeholders’ input on aspects of the Digital Operational Resilience Act (DORA). This Discussion Paper follows the European Commission’s request for technical advice on the criteria for critical ICT third-party providers (CTPPs) and the oversight fees to be levied on them. Interested stakeholders are invited to provide their input by 23 June 2023.
For further technical information and updates please visit the Technical Hub on the Institute website.
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