Welcome to this week’s Technical Roundup.
In developments this week, the European Financial Reporting Advisory Group is holding a symposium on Connectivity between financial reporting and sustainability reporting at the European Accounting Association Annual Congress which will take place in Helsinki and Espoo on 26 May, 2023; the Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has published its 2022 Annual Report, which provides an account of its joint work completed over the past year.
Read more on these and other developments that may be of interest to members below.
Financial Reporting
IAASA, Ireland’s accounting enforcer, has published a Paper “Transparency Regulations – information requests”. This Paper lists some information requests that IAASA has made to companies as part of its financial statement examinations.
In its recent letter to the EC’s President Ursula von der Leyen & Commissioner Mairead McGuinness, Accountancy Europe have addressed the recent commitments by the EC to simplify reporting requirements in the green, digital and economic thematic areas. Specifically, the EC have recommended that any upcoming legislative proposals should not be rushed, should be based on independent and costed impact assessments, should be subject to public consultation and should be field tested.
The Financial Reporting Council (FRC) has issued Amendments to Basis for Conclusions FRS 101 Reduced Disclosure Framework - 2022/23 cycle. This completes the annual review by the FRC of the FRS 101 standard, which proposed no amendments.
The International Accounting Standards Board (IASB) has issued amendments to IAS 12 Income Taxes. The amendments give companies temporary relief from accounting for deferred taxes arising from the Organisation for Economic Co-operation and Development’s (OECD) international tax reform.
The IASB has also issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosure. These amendments are intended to enhance the transparency of supplier finance arrangements and include additional disclosures. The changes are effective for accounting periods beginning on or after 1 January 2024.
The European Financial Reporting Advisory Group (EFRAG) is asking for preparers to provide input to an academic study on the effects of the adoptions of IFRS 15. This is to assist in EFRAG’s work on the post-implementation review of the standard.
The UK’s Department for Business and Trade is seeking views on the non-financial reporting requirements UK companies need to comply with to produce their annual report, and whether company size thresholds remain appropriate. This consultation remains open until 16 August.
The European Financial Reporting Advisory Group (EFRAG) is holding a symposium on Connectivity between financial reporting and sustainability reporting at the European Accounting Association Annual Congress which will take place in Helsinki and Espoo on 26 May, 2023.
Audit
The Financial Reporting Council (FRC) has announced the Audit Committees and the External Audit: Minimum Standard, which comes after careful consideration of the consultation responses received from stakeholders.
Corporate Governance
The Financial Reporting Council has launched a public consultation on proposed revisions to the UK Corporate Governance Code. This follows the UK Government's response to the White Paper, Restoring Trust in Audit and Corporate Governance, which identified areas of reform related to a particular focus on directors' responsibilities for internal control, risk, audit and corporate reporting. Comments on the questions set out in this consultation document are requested by Wednesday 13 September 2023.
Other
Safeguarding reports for payment and electronic money firms
The Central Bank of Ireland have issued a communication to clarify the nature of the specific audit of compliance with the safeguarding requirements under the Payment Services Regulations (PSR)/ Electronic Money Regulations (EMR), as communicated in the Central Bank’s letter dated 20 January 2023, addressed to all payment and electronic money institutions authorised in Ireland.
The European Securities and Markets Authority (ESMA) is consulting on draft regulatory technical standards (RTS) under the revised ELTIF Regulation. Interested stakeholders are invited to provide input by 24 August 2023. ESMA will consider the feedback it receives to this consultation in Q3/Q4 2023 and expects to publish a final report and submit the draft technical standards to the European Commission for endorsement by 10 January 2024.
The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has published its 2022 Annual Report, which provides an account of its joint work completed over the past year. It focused on issues of cross-sectoral relevance, such as joint risk assessment, sustainable finance, digitalisation, consumer protection, securitisation, financial conglomerates, and central clearing.
Sustainability
Accountancy Europe has announced that it has joined EU Green Week, which raises awareness, promotes and discusses European environmental policy.
For further technical information and updates please visit the Technical Hub on the Institute website. Technical Hub on the Institute website.