Technical Hub

Welcome to the new Chartered Accountants Ireland Technical Hub which we have launched for members. This new resource replaces CHARIOT from 1 January 2021 and follows the “Hub-based” approach already in use elsewhere by the Institute.

The Hub contains content on audit & assurance, financial reporting, insolvency, links to legislation, and a wide range of proprietary Institute content. There are links to materials previously available on CHARIOT including International Financial Reporting Standards, International Standards on Auditing, Financial Reporting Standards issued by the Financial Reporting Council (FRC) and other FRC material on auditing and financial reporting. There are also links to company legislation and other relevant business legislation for Ireland and the United Kingdom. Technical information issued by the Institute including Information Sheets, Miscellaneous Technical Statements, Technical Alerts and Technical Releases are also included for members.

A mapping document has been prepared, which outlines where content previously found on CHARIOT can now be found on the Technical Hub.

In designing the Hub, care has been taken to make it accessible, user friendly and to provide greater context around the resources provided. We welcome feedback on your experience of using the Hub or indeed, if you have difficulty locating materials that were previously available to you on CHARIOT please let us know.

Latest technical news

Welcome to this week’s Technical Roundup.   In developments this week, the FRC discusses why challenge of management and a challenge culture is critical to high quality audit; the UKEB has responded to the recent IASB consultation on the proposed amendment to IFRS 16 Leases; IFAC recently released the final instalment in its series Exploring the IESBA Code; the FRC encourages more transparency when reporting against the UK Corporate Governance Code; and Accountancy Europe have issued their March newsletter covering a range of topics. Read more on these and other developments that may be of interest to members below.  Financial Reporting   The UK Endorsement Board (UKEB) has responded to the recent International Accounting Standards Board (IASB) consultation supporting the amendment to IFRS 16 extending Covid-Related-Rent concessions. In publishing the response, the UKEB secretariat note that they plan to issue a draft Endorsement Criteria Assessment for public consultation in the same week IASB publish the final amendment.  Read more here.   The IFRS Foundation held a live webinar on 24 February 2021 about the IASB's Exposure Draft Regulatory Assets and Regulatory Liabilities. The recording of the webinar and accompanying slide deck are now available.  The February 2021 monthly news, summarising news and events from the IASB and the IFRS Foundation over the past month, is now available. Audit In a recent podcast, the Financial Reporting Council’s (FRC’s) Director of Stakeholder Engagement and Corporate Affairs discusses with members of the FRC’s new Supervision division why challenge of management and a challenge culture is critical to high quality audit.   Other areas of interest   The FRC has issued advice for companies on how to report transparently and effectively when departing from certain provisions of the UK Corporate Governance Code. This new guidance builds on the findings of the FRC’s Review of Corporate Governance Reporting issued in November. These reports are part of the FRC’s ongoing drive to promote good practice and support companies to continually improve their reporting against the Code. The FRC is carrying out a post implementation review of the Technical Actuarial Standards (TASs) and has issued a call for feedback for the current Framework for TASs, Technical Actuarial Standard 100 (TAS 100), and potential actuarial standards in relation to IFRS 17. IFAC recently completed its inaugural series Exploring the IESBA Code, an educational resource developed in collaboration with the staff of the International Ethics Standards Board for Accountants (IESBA).  The final installment released explains the “building blocks” structure of the Code and its interconnected nature. The European Securities and Markets Authority (ESMA) has submitted its response to the European Commission’s targeted consultation on the European Single Access Point (ESAP).  The International Valuation Standards Council (IVSC) has published a perspectives paper to initiate discussion and debate on the topic of environmental, social, and governance (ESG) factors in business valuation. "Credit union sustainability: the role of risk management, in sector restructuring and business model change", the Registrar of Credit Unions addresses the Credit Union Managers Association’s Spring Conference. Accountancy Europe have issued their March newsletter covering a range of topics, and it is available to read here.  For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.

Mar 04, 2021

Developments of interest this week are outlined. Chartered Accountants Ireland The IASB recently consulted on a proposal to extend by one year the application period of the amendment to IFRS 16 Leases issued in 2020. The Institute’s Accounting Committee has responded to the Exposure Draft and the response is available to read here. ROI The Central Bank of Ireland has issued a Consultation Paper on enhancing engagement with stakeholders.  In the consultation the bank acknowledges the importance of stakeholder engagement in its ability to identify opportunities to enhance the performance of the financial system and identify any risks that may be developing. The closing date for responses is Tuesday 11 May 2021. UK  The Financial Reporting Council (FRC) published principles for operational separation of the audit practices of the ‘Big 4’ firms in July 2020.  The FRC asked the firms to submit their implementation plans by 23 October 2020.  The FRC has reviewed these plans and discussed them with the firms individually and is now content for the firms to move to the next stage of implementation. Europe Recent fraud cases, corporate failures and the pandemic’s impact have led Accountancy Europe to issue two publications with recommendations to strengthen the financial reporting ecosystem, respectively on: Going concern, and Fraud. The EFRAG has released a first podcast on the post-im­ple­men­ta­tion review of IFRS 10 ‘Con­sol­i­dated Financial State­ments’, IFRS 11 ‘Joint Arrange­ments’ and IFRS 12 ‘Dis­clo­sure of Interests in Other Entities’, which provides an in­tro­duc­tion into the post-im­ple­men­ta­tion review process. The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published the final report on Guidelines aimed at assisting competent authorities in the application of EMIR provisions that deal with the review and evaluation of central counterparties (CCPs). International The IASB has released a podcast featuring IASB Chair Hans Hooger­vorst and Vice-Chair Sue Lloyd to discuss de­lib­er­a­tions at the 4 February 2021 sup­ple­men­tary meeting and the 16–17 February 2021 IASB meeting. The International Auditing and Assurance Standards Board (IAASB) is requesting public comments on its Exposure Draft addressing changes in some of its standards and framework resulting from the new and revised quality management standards. Comments are requested by May 24, 2021.

Feb 25, 2021

Recent fraud cases, corporate failures and the pandemic’s impact have led Accountancy Europe to issue two publications with recommendations to strengthen the financial reporting ecosystem, respectively on:  Going concern  Fraud In the two publications Accountancy Europe explore how the main parties interacting in this ecosystem can improve dealing on those fronts: auditors, corporate boards and management, legislators, standard setters and regulators. 

Feb 23, 2021

Developments of interest this week are outlined. UK  A new FRC Lab report, Virtual and Augmented Reality in corporate reporting, considers how virtual and augmented reality are and might be used to expand the scope and audience for corporate reporting. The report includes examples of current practice and highlights some possible future uses. The report is the final deep dive from the Lab’s Digital Future series. Europe Accountancy Europe and the European Association of Cooperative Banks (EACB) invite you to join them as they debate how new rules on reporting non-financial information (NFI) might affect small and medium-sized enterprises (SMEs). With the help of EACB, Accountancy Europe is developing a checklist for accountants to help SME clients prepare for these new requirements, whether they stem from legislation, banks or supply chain partners. ESMA has submitted IFRS 9 and IAS 20 related questions to the IFRS Interpretations Committee. Find out more here. EFRAG has issued a Draft Endorsement Advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Covid-19-Related Rent Concessions beyond 30 June 2021 ('the Amendments'). EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends its endorsement. Comments are requested by 17 March 2021. EFRAG has issued a reminder in relation to its call for EFRAG TEG members. Candidates with an accountancy profession background with an EEA nationality (other than France, Germany, Italy and Spain) have until 28 February to send their applications to join EFRAG’s Technical Expert Group (EFRAG TEG) for the 2021 rotation. International The IFRS Foundation is holding a live webinar on the IASB’s consultation on regulatory assets and regulatory liabilities. The webinar, which will be held on Wednesday 24 February 2021 at 12:00 GMT, and will run for approximately an hour, will provide an overview of the proposals in the Exposure Draft Regulatory Assets and Regulatory Liabilities (published in January 2021). A recording of the webinar will be available after the live discussion. The IASB has recently issued narrow-scope amendments to IFRS Standards. Following feedback that more guidance was needed to help companies decide what accounting policy information should be disclosed, the Board has issued amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements. Separately, the Board has also issued amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors. The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates.      

Feb 18, 2021

Developments of interest this week are outlined. Chartered Accountants Ireland Chartered Accountants Ireland has updated the Technical and business updates page on our COVID-19 Hub with updates on Financial Reporting implications of Coronavirus.  We have also updated our page on Other Regulator Updates for both ROI and NI / UK in response to COVID-19.   ROI The Department of Enterprise, Trade and Employment is developing legislation for the rescue of small companies. To inform development of the General Scheme of the Bill, the Department is seeking submissions from interested parties. UK  The UK Endorsement Board secretariat has published their draft comment letter on the IASB’s ED/2020/4 Lease Liability in a Sale and Leaseback. The draft comment letter is open for comment until 1 March 2021. Europe Accountancy Europe have published Going concern: recommendations to strengthen the financial reporting eco-system. International The IASB has published for consultation a proposal to extend by one year the application period of the amendment to IFRS 16 Leases issued in 2020 to help lessees accounting for covid-19-related rent concessions. The IASB has posted the recording of its recent webinar on iden­ti­fy­ing research op­por­tu­ni­ties by academics in IFRS 15 ‘Revenue from Contracts with Customers’. On 1 March 2021, EFRAG, EFFAS, ABAF/BVFA and the IASB offer a joint ex­plana­tory webinar to consider the views of users for the post-im­ple­men­ta­tion review on IFRS 10, 11 and 12.    

Feb 11, 2021
Accounting

The International Accounting Standards Board (‘IASB’ or ‘the Board’) has published for consultation a proposal to extend by one year the application period of the amendment to IFRS 16 Leases issued in 2020 to help lessees accounting for covid-19-related rent concessions. In publishing the consultation, the Board note that ‘the original amendment was issued in May 2020 to make it easier for lessees to account for covid-19-related rent concessions, such as rent holidays and temporary rent reductions, while continuing to provide useful information about their leases to investors. The practical relief currently applies to rent concessions that reduce only lease payments due on or before 30 June 2021.’, and that ‘in response to calls from stakeholders and because the covid-19 pandemic is still at its height, the Board proposes to extend the relief to cover rent concessions that reduce only lease payments due on or before 30 June 2022.’ Due to the urgent nature of the proposal, the Trustees of the IFRS Foundation have approved a shorter-than-normal comment period of 14 days for this consultation, with the deadline for submitting comments on the Exposure Draft (ED) being 25 February 2021. In terms of next steps, the ED says ‘The Board will consider the comments it receives on the proposal in this Exposure Draft and will decide whether to proceed with the proposed amendment. The Board plans to complete any resulting amendment to IFRS 16 by the end of March 2021.’ The ED can be accessed here.

Feb 11, 2021