Welcome to this week’s Technical Roundup.
In developments this week, the Chartered Governance Institute UK & Ireland recently published a very useful summary of company law changes including some changes to the Companies Act 2014. The provisions of the Companies (Corporate Enforcement Authority) Act 2021 have not yet been commenced but that is expected very shortly and the Financial Reporting Council has issued the first in-depth assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles. The report, which was conducted with the University of Essex, shows that the Wates Principles are the most widely adopted corporate governance code used by large private companies.
Read more on these and other developments that may be of interest to members below.
Financial Reporting
The European Financial Reporting Advisory Group (EFRAG) invites users and preparers to complete either or both of its online questionnaires on Non-current Liabilities with Covenants and Supplier Finance Arrangements by 4 March 2022.
EFRAG has issued a Feedback Statement on the post implementation review of IFRS 9 classification and measurement. This feedback statement summarises constituents' feedback on EFRAG's Draft Comment Letter and explains how EFRAG considered this feedback in developing its Final Comment Letter.
The UK Endorsement Board (UKEB) has published its draft Due Process Handbook on the UKEB website. It sets out the due process the Board plans to apply to its activities, enabling it to uphold its guiding principles of accountability, independence, transparency and thought leadership when fulfilling its statutory functions.
Auditing
The International Auditing and Assurance Standards Board (IAASB) have released a First-time Implementation Guide for ISA 220, Quality Management for an Audit of Financial Statements. The guide will help stakeholders understand the standard and properly implement its requirements as intended.
Insolvency
The Companies Registration Office has confirmed that from 1 March 2022 certain forms which includes certain insolvency forms will be become mandatory online filings only. The list of forms for mandatory online filing are available here and it is noted that forms received by post after this date will be returned for online submission.
Other Areas of Interest
The Institute recently responded to Phase II of a consultation by the Decision Support Service (DSS). The DSS’s new statutory service will include the replacement of wardship for adults. As part of the new arrangements a circuit court can make an order appointing a suitable person to the role of decision-making representative (DMR) from a panel of experts. A DMR’s role is to make certain decisions on behalf of a person if they are unable to make those decisions themselves. As a DMR can be appointed to make decisions about property or money matters, accountants may be required to sit on this panel.
In Phase II, the DSS consulted on a number of codes including the draft Code of Practice for Decision-Making Representatives. The Institute responded to the consultation, highlighting matters of potential concern to members who may be appointed a DMR including potential conflicts of interest issues and record keeping requirements.
Companies are embracing the spirit of the Wates Principles. The Financial Reporting Council has issued the first in-depth assessment of the quality of reporting from private companies who have chosen to follow the Wates Principles. The report, which was conducted with the University of Essex, shows that the Wates Principles are the most widely adopted corporate governance code used by large private companies.
The Chartered Governance Institute UK & Ireland recently published a very useful summary of company law changes including some changes to the Companies Act 2014. The provisions of the Companies (Corporate Enforcement Authority) Act 2021 have not yet been commenced but that is expected very shortly .You can read the summary of changes by following the link here.
Readers interested in crypto assets might be interested in a recent report of the Financial Stability Board (FSB) “Assessment of Risks to Financial Stability from Crypto-assets“. FSB is an international body that monitors and makes recommendations about the global financial system. The report provides the FSB’s view on recent developments in crypto-asset markets and their implications for global financial stability. You can also click here to hear an interview on Times Radio by FSB Secretary General Dietrich Domanski who explains the FSB's assessment of risks arising from crypto-assets.
The Department for Digital, Culture, Media and Sport in the UK has recently published its Cyber Security Sectoral Analysis 2022 Research report. The Cyber Security Sectoral Analysis project has helped to track the growth and performance of the UK’s cyber security sector since 2018.The report builds on previous reports and contains information about the UK cyber security sector, including the number of businesses, the sector’s contribution to the UK economy, the number of people employed and the products and services offered by these firms.
The Central Bank Governor recently addressed the European Financial Forum speaking on Trends and Transitions: an Irish perspective on global and European regulation. He spoke on some familiar themes including economic resilience, the green transition and digital transition and also the changing financial system with large growth in the financial sector outside the traditional banking system and open economic and financial strategic autonomy with the aim of boosting the role of the European Union on the world stage.
In other Central Bank activity, the Director of Financial Regulation spoke recently to the Compliance Institute about evolving financial regulation and how effective regulation supports economic activity. He also spoke about the individual accountability regime and consumer protection.
On Thursday 24 February the Irish Commissioner for Data Protection launched the Irish Data Protection Commission’s Annual Report for 2021.You can read the press release here and details of the report here including figures for complaints ,queries and breach notifications and the inquiries and investigations carried out .
Readers may be interested in the Low Pay Commission Consultation on the National Minimum Wage 2023.The Low Pay Commission makes recommendations to the Minister for Enterprise, Trade and Employment designed to set a minimum wage that is fair and sustainable. It is currently looking for views on the National Minimum Wage rate for 2023.The consultation is open from 23 February to 23 March 2022.
Companies have been urged to take advantage of Local Enterprise Week across the country. Free online and physical events are being hosted by enterprise offices from 7 to 11 March supported by local authorities and Enterprise Ireland. Some of the topics include “Future Proofing Your Small Business”, “Internationalising Your Business”, “Going Green” and “Show Me the Money”. Click here for the press release and here for more information on the events and how to register.
For further technical information and updates please visit the Technical Hub on the Institute website.
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