The Corporate Enforcement Authority (CEA) has published its first annual report covering a period from July 2022 to December 2023. Click here for the CEA press statement .The annual report provides a comprehensive account of the steps taken to establish the CEA's presence amongst its stakeholders, and of the work undertaken to establish the organisation's operational capability. The report includes 17 case studies that illustrate the breadth of the CEA's impact and demonstrate a considered and graduated approach towards the deployment of the CEA’s enforcement powers. Case studies range from use of incorrect registered office address to incorrectly claiming audit and group exemptions and breach of director’s loan provisions. There is also a case study on supervision of the implementation of the terms of a SCARP rescue plan. On SCARP generally the annual report writes that a process advisor must submit their final report, that is, after developing a rescue plan, to the CEA. Unlike auditors’ indictable offence reports, which by their nature identify potential offences, process advisors’ reports are submitted to the CEA for information on the rescue process and plan. If a report indicates potential wrongdoing or other issues, the CEA can investigate as considered necessary or appropriate. The CEA wrote that it received 51 reports in the period and each report is examined.

This item has been updated since its original publication on 20 June 2024 following coming into force of 14th EU package of sanctions. Readers will be aware that since June 2022 there has been an EU ban on the provision of accounting services to the Russian government and legal entities and persons established in Russia. The banned services include accounting, auditing, including statutory audit, bookkeeping or tax consulting services. Click for more information on the ban on provision of accounting services on  the Institute’s website. Within the regulation imposing the ban there is an exemption for the provision of services intended for the exclusive use of Russian entities which are subsidiaries of EU companies and companies established in certain other allied jurisdictions (The list of jurisdictions has been updated in the 14th package). However, with the 12th package of sanctions, introduced in December 2023 came a wind down of the exemption permitting the provision of restricted business services to those subsidiaries. This wind down had originally been set for 20 June 2024 after which a licence from EU Member States will be required to continue providing services to Russian affiliates. However, the 14th package of sanctions extended this wind down date to 30 September 2024. The 14th package also introduces an exemption from the ban whereby EU nationals that are residents of Russia (and were so before 24 February 2022) are permitted to provide the prohibited professional services, excluding software, to EU/Western-owned subsidiaries who are their employers. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

Read more on changes to company law to be implemented by the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024. 2024 Amendments to Companies Act 2014

Welcome to the latest edition of Technical Roundup. In developments since the last edition, IAASA has published its 2023 Annual Audit Programme and Activity Report which gives a summary of the activities performed during 2023 and regulatory engagement work proposed for 2024.  The Global Reporting Initiative (GRI) has published ‘CSRD Essentials - The definitive guide to the EU Corporate Sustainability Reporting Directive’ which simplifies the key aspects of the CSRD and how the new reporting requirements will operate. Read more on these and other developments that may be of interest to members below. Financial Reporting EFRAG, the European Financial Reporting Advisory Group, has updated its Endorsement Status Report. This report now reflects the publication of IFRS 19 Subsidiaries without public accountability as well as amendments to IAS 7 and IFRS 7 relating to Supplier Finance Arrangements. The International Accounting Standards Board (IASB) and EFRAG, along with various other bodies will hold some webinars to introduce IFRS 18 for corporate entities and financial institutions on 7th and 11th June. The IASB has issued its May 2024 update and podcast. The IASB has issued some narrow scope amendments to the classification and measurement requirements in IFRS 9 Financial Instruments. These are intended to address diversity in accounting practice by making the requirements more understandable and consistent. ESMA, the European Securities and Markets Authority, has updated some Q&As on its website. The IASB has released a webcast discussing the changes proposed in its recently released exposure draft relating to Contracts for Renewable Energy. Auditing and Assurance Technical Alert 02/2024 – Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive. TA 02 2024 has been issued to provide assistance to members when drafting engagement letters in respect to limited assurance engagements under the Corporate Sustainability Reporting Directive (“CSRD”) which has yet to be transposed into Irish legislation. Accountancy Europe has published its May 2024 Audit Policy Update. The International Ethics Standards Board for Accountants (IESBA) has released its 2023 Annual Report, Respecting the Past, Planning for the Future. 2023 Annual Audit Programme and Activity Report IAASA has published its 2023 Annual Audit Programme and Activity Report which gives a summary of the activities performed during 2023 and regulatory engagement work proposed for 2024. Anti–money laundering and sanctions The Home office in the UK has recently issued the Economic Crime and Corporate Transparency Act 2023: progress report. This is a report on the first 6 months of implementation and operation of the Economic Crime and Corporate Transparency Act 2023. It gives a useful summary of statutory instruments laid to date and the further regulations planned before the summer. (These plans have probably been affected by the recent calling of a general election in the UK).  Click here to access the report. On 24 April 2024 the European Union adopted a directive to harmonise criminal offences for violation of EU sanctions (the “Directive”).  The Directive was introduced to limit sanctions circumvention and to tighten enforcement and provides a common definition of what constitutes a violation of EU sanctions and provides for penalties for the violation of European Union restrictive measures. Please click here for a recent Institute news item on the Directive. Deputy Governor of the Central Bank of Ireland Derville Rowland spoke last month at the European Anti-Financial Crime Summit about Setting up the new EU Anti-Money Laundering Authority for success. You can read her speech here. Insolvency The Institute recently hosted a webinar on the Small Companies Administrative Rescue Process (SCARP) - Practical Issues. This discussion with David Swinburne and Philip Maher of Mazars included how to prepare for a SCARP, what to look out for and key matters to be aware of when considering the process. There was also discussion around some practical issues including how SCARP is working in practice, dealing with creditors and excludable creditors.  The recording is available here.   Sustainability The Financial Reporting Council has welcomes the appointment of Sally Duckworth as Chair of the new UK Sustainability Disclosure Technical Advisory Committee (TAC), for which it will act as secretariat. The Global Reporting Initiative (GRI) has published “CSRD Essentials- The definitive guide to the EU Corporate Sustainability Reporting Directive” which simplifies the key aspects of the CSRD and how the new reporting requirements will operate. The GRI has also published an article explaining the new naming system of the GRI standards. The GRI and International Sustainability Standards Board (ISSB) have announced that the two organisations will work together to optimise how their sustainability standards can be used together. EFRAG and the ISSB recently held a joint event entitled “Unlocking Synergy – Interoperability Guidance on IFRS Sustainability Disclosure Standards and ESRS”. A recording of the event can be viewed here. EFRAG has published a batch of 44 new explanations which are now included on its ESRS Q&A Platform. These Q&As are intended to assist stakeholders in the implementation of the ESRS standards. The ISSB has recently announced that jurisdictions “representing over half the global economy by gross domestic product (GDP) have announced steps to use the International Sustainability Standards Board’s (ISSB) Standards or to fully align their sustainability disclosure standards with those of the ISSB”. The ISSB has issued its May 2024 Update and Podcast. The Institute of Chartered Accountants of Scotland (ICAS) has published “Materiality Assessments in Corporate Sustainability and Financial Reporting” which discusses the different assessments of materiality within sustainability and financial reporting. The Global Accounting Alliance  (GAA) has published a report into recent workshops held on corporate natural capital accounting. The report highlights the importance of corporate natural capital accounting (CNCA) in helping businesses build resilience and value through nature-positive action and how accountants are well-placed to help drive uptake of CNCA across the market. Accountancy Europe, along with the American Chamber of Commerce to the European Union, CFE Tax Advisers Europe and Ecommerce Europe have called on the European Commission to provide further guidance to Member States on applying the Vat Direction on charitable donations. The purpose of this is to alleviate concerns about VAT avoidance and to facilitate corporate donations across the EU. Accountancy Europe has published its May 2024 sustainability update. The IFRS Foundation has published two new webcasts to help explain the International Sustainability Standards Board’s (ISSB) disclosure requirements related to the current and anticipated effects of sustainability-related risks and opportunities on a company’s financial position, financial performance and cash flows. New and forthcoming legislation Company law changes The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 (the 2024 Act) was enacted on 9 May 2024. The commencement date of the 2024 Act has yet to be confirmed. While the bulk of the provisions amend employment legislation and establish an employment law review group, the 2024 Act also makes some amendments to the Companies Act 2014. A summary of the provisions relating to amendment of company law will be available from the Institute shortly. Other legislation The European Council has identified main priorities for the next legislative cycle and in doing so ensures the EU digital policy that will be developed while the Council conclusions aim to address both the challenges and opportunities of the digital sphere. Dept. of Enterprise Trade & Employment (DETE) news The Dept. of Enterprise Trade & Employment recently published the Second Update Report on the White Paper on Enterprise Implementation Plan 2023-2024. This Report details the work done in pursuit of priority DETE policy objectives such as Integrating Net Zero and Carbon Commitments and placing digital transformation at the heart of enterprise policy. You can access a copy of the report here. On May 15, 2024, the Irish Government announced a new business support package worth up to €150 million, aimed at bolstering SMEs which is designed to reduce costs, foster innovation, and ensure long-term sustainability for Irish businesses. The Department of Enterprise, Trade and Employment is inviting submissions to a public consultation on the implementation of the EU Artificial Intelligence (AI) Act, which was formally adopted by the EU on 21 May 2024 and is expected to enter into force in June 2024. This consultation is intended to inform Ireland’s approach to implementing the Act and, specifically in relation to the configuration of national competent authorities required for implementation. All EU Directives transposed by the Department of Enterprise, Trade and Employment between 2012 and 2024 have been published as a list in pdf format on their website for information. Readers are reminded to subscribe to the Department of Enterprise Trade and Employment Enterprise newsletter which DETE issues periodically and is a good source of information on news within the Department. You can subscribe to the newsletter here.   Other The Data Protection Commission (“DPC”) has published its 2023 annual report which highlights its workload and regulatory accomplishments over the last year. The Central Bank has published their Annual Report and Performance Statement for 2023. The Annual Report includes describes the Central Bank’s work and financial results for last year as well as their priorities for the current year.  The Irish Charities Regulator has now published its report on Ireland’s charity sector from 2019 to 2022, an analysis of data from annual reports submitted to it. The report provides insights for example into changes to charity income, expenditure and employment. You can read more here in the report. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

Technical Alert 02/2024 – Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive A Technical Alert (TA) has been issued to provide assistance to members when drafting engagement letters in respect to limited assurance engagements under the Corporate Sustainability Reporting Directive (“CSRD”) which has yet to be transposed into Irish legislation. Until this transposition occurs (expected July 2024), in the interim and to allow engagement planning to commence, these engagement letter terms may be used to implement a formal contract with the entity. Addendums and/or replacement engagement letter terms may be required where significant changes are necessary; members are advised to note the important caveats in the preface to this TA. The engagement letter terms have been drafted based on current guidance in issue which may change as the CSRD regulatory landscape changes. In addition the applicable standard used is the International Standard on Assurance Engagements (ISAE) 3000 (Revised) issued by the International Auditing and Assurance Standards Board (IAASB). This may be subject to change, depending on the assurance standard that is specified for use in Ireland for CSRD sustainability assurance engagements by the Irish Auditing and Accounting Supervisory Authority (IAASA). You can access the TA here.

The Institute recently hosted a webinar on the Small Companies Administrative Rescue Process (SCARP) - Practical Issues. This discussion with David Swinburne and Philip Maher of Mazars included how to prepare for a SCARP, what to look out for and key matters to be aware of when considering the process. There was also discussion around some practical issues including how SCARP is working in practice, dealing with creditors and excludable creditors.  The recording is available here.