Welcome to this week’s Technical Roundup.   In developments this week, IAASA has published a Consultation Paper on its proposals to issue a revised version of ISA (Ireland) 240 which covers auditor’s responsibilities relating to fraud; IAASA has decided to revoke the recognition of the Institute of Chartered Accountants in England and Wales as a prescribed body in Ireland following an application by ICAEW and Accountancy Europe have released a podcast A 360 view on Sustainable Corporate Governance. Read more on these and other developments that may be of interest to members below. Auditing IAASA has published a Consultation Paper on its proposals to issue a revised version of ISA (Ireland) 240, The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. The purpose of this consultation paper is to obtain the views of stakeholders with regard to IAASA’s proposals to issue revised standard and conforming amendments. Read more here. IAASA has decided to revoke the recognition of the Institute of Chartered Accountants in England and Wales (‘ICAEW’) granted under S.930 of the Act with effect from 21 July 2021. This means that ICAEW may no longer authorise individuals or firms as statutory auditors or public auditors in Ireland or undertake any audit related regulatory functions. This decision follows the application by the ICAEW to IAASA for revocation of its recognition. As a result of this revocation, ICAEW is no longer a prescribed accountancy body under the Act and therefore, no longer comes under the remit of IAASA. Read more. The International Forum of Independent Audit Regulators (IFIAR) established the Internationally Relevant Developments in Audit Markets Task Force to monitor developments in IFIAR Member jurisdictions, focusing on developments relevant to the audits of public interest entities. To do so, the task force conducted an extensive survey amongst IFIAR Members in the beginning of 2020 and the report issued by IFIAR this week summarizes these observations. Financial Reporting The Accounting Reg­u­la­tory Committee (ARC) voted in favour of endorsing IFRS 17 'Insurance Contracts' (including the amend­ments to IFRS 17 issued in June 2020) for use in the EU. Final endorsement is currently expected in the fourth quarter of 2021. The European Se­cu­ri­ties and Markets Authority (ESMA) has published further extracts from its con­fi­den­tial database of en­force­ment decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 9 (three decisions), IFRS 16 (two decisions), IFRS 9/IFRS 7, IAS 1, IAS 1/IAS 34, IAS 1/IFRS 7 and IAS 7. Sustainability A summary of the The IFRS Foun­da­tion Trustees’ meeting on 13 July 2021 is now available. During the meeting progress and next steps to establish a new board focused on sus­tain­abil­ity-re­lated dis­clo­sure standards was discussed. An update was also provided in relation to a recent meeting of some of the Trustees with the Monitoring Board that allowed the Trustees to provide a detailed update on progress and next steps in their work to establish the proposed International Sustainability Standards Board. The Chair of the Trustees reported on his participation in a policy panel on regulations, disclosures, financial risk and private financing for the green economy as part of the recent International Conference on Climate Change. The Trustees also noted the G20 support for the IFRS Foundation’s work to establish a new board. Accountancy Europe have released a podcast A 360 view on Sustainable Corporate Governance. The podcast features European Parliament Vice-President Heidi Hautala and Olivier Boutellis-Taft, CEO of Accountancy Europe. Other areas of interest The Pensions Authority has this week published a draft code of practice for trustees of occupational pension schemes and trust RACs. IFAC has released an article Greater Transparency and Accountability in the Public Sector. The article explores the need for strong governance and public financial management, so that governments and public sector entities around the world can make informed, data-driven decisions for people, the planet, and the economy. It also outlines how the accountancy profession, with its public interest mandate, can support the public sector in achieving long-term financial sustainability and resilience, to help create a better world with stronger economies and fairer societies.    

Welcome to this week’s Technical Roundup.   In developments this week, The G20 Finance Ministers and Central Bank Governors met in Venice on 9-10 July 2021. Their final communiqué has been issued which also comments on sus­tain­abil­ity reporting; the Companies (Rescue Process for Small and Micro Companies) Bill 2021 was passed through all legislative stages in the Oireachtas; and published; the Government announced its Summer Economic Statement. Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) in con­junc­tion with the European Accounting As­so­ci­a­tion (EAA) and European Financial Reporting Advisory Group (EFRAG) held a virtual research workshop on 1 July 2021 that provided an overview of the IASB’s exposure draft (ED) ‘Dis­clo­sure Re­quire­ments in IFRS Standards — A Pilot Approach’. A recording of this workshop is now available. The European Financial Reporting Advisory Group (EFRAG) project task force on reporting of non-fi­nan­cial risks and op­por­tu­ni­ties and linkage to the business model held a webinar where it in­tro­duced key findings in its draft report. EFRAG has now published a summary report and a video from the event. Audit The Financial Reporting Council (FRC) has today issued revised quality management standards for an audit firm’s responsibilities to design, implement and operate a system of quality management: International Standard on Quality Management (UK) 1 Quality Management For Firms That Perform Audits Or Reviews Of Financial Statements, Or Other Assurance Or Related Services Engagements, International Standard on Quality Management (UK) 2 Engagement Quality Reviews, and International Standard on Auditing (UK) 220 (Revised July 2021) Quality Control For An Audit Of Financial Statements. The IAASB in collaboration with IFAC will host two quality management webinars, Resourcing for Quality Management on July 29 from 11 am–12 pm GMT and Your Firm’s Monitoring & Remediation Process on August 5 from 11 am–12 pm GMT. Sustainability The G20 Finance Ministers and Central Bank Governors met in Venice on 9-10 July 2021. Their final communiqué has been issued which also comments on sus­tain­abil­ity reporting. Working towards international sustainability reporting convergence, EFRAG Project Task Force on European sustainability reporting standards (PTF-ESRS) and GRI recently signed a landmark Statement of Cooperation. A4S/ABN Were you aware that there are currently 614 sustainability reporting requirements across 84 countries and 25 Exchanges (covering 16,456 companies) require ESG reporting as a listing rule? Organizations are therefore relying on the knowledge, skills and processes of finance professionals, including the crucial role of the accountant, to get ahead of corporate reporting trends. Accounting for Sustainability (A4S) and its Accounting Bodies Network (ABN) have just published a new guide on sustainability reporting. This guide offers a brief introduction to the changing corporate reporting landscape. It summarises recent key developments in sustainability reporting. It shows how it is impacting the role of the accountant and shaping the future of corporate reporting. It also highlights how this area is likely to evolve going forward, offering signposting to further sources of information. The Institute is proud to have contributed towards this work and we hope you find it useful in navigating the future of accountancy. Anti-Money Laundering Accountancy Europe’s online blog this week Money laundering is a real issue: are we doing enough to fight it? discusses how Money Laundering impacts on our society and economy and whether AML legislation is doing enough. Other areas of interest The Minister for Trade Promotion, Digital and Company Regulation, Robert Troy TD, welcomed the passing of the Companies (Rescue Process for Small and Micro Companies) Bill 2021 through all legislative stages in the Oireachtas. The Bill will now be sent to Office of the President for signature and enactment into law. The Bill amends the Companies Act 2014 to provide for a new dedicated rescue process for small and micro companies, the Small Company Administrative Rescue Process (SCARP). The administrative rescue process mirrors key provisions of the existing examinership process including the repudiation of onerous contracts, cross-class cram down of debts, and encourages ongoing creditor engagement. The Central Bank of Ireland has this week published a series of findings and expectations from its industry-wide review of compliance with the Market Abuse Regulation (MAR). This review examined how regulated firms, issuers, and advisors who act on behalf of issuers are meeting their obligations to ensure organisational arrangements are effective in mitigating the risk of market abuse and ensuring market transparency. The Minister for Finance, Paschal Donohoe T.D., and the Minister for Public Expenditure and Reform, Michael McGrath T.D., published the Government’s Summer Economic Statement. This document sets out the Government’s medium-term budgetary strategy and outlines the fiscal parameters within which discussions will take place ahead of Budget 2022. Read the full press release here. The FRC in partnership with London Business School Leadership Institute and SQW will host a webinar on July 21st, from 2pm-3pm, to launch the ‘Board Diversity and Effectiveness in FTSE 350 Companies’ research report. The Department of Trade, Enterprise and Employment has issued its July newsletter which includes details of the relevant open public consultations and it also provides guidance on remote working.  The Companies Registration Office has issued its Annual Report for 2020. There are many interesting statistics contained in the report including the fact that there were in excess of 250,000 companies registered in Ireland at the end of  last year and almost 22,000 companies were incorporated in 2020. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.     

Welcome to this week’s Technical Roundup.   In developments this week, The European Commission have issued their Strategy for Financing the Transition to a Sustainable Economy; The European Fin­an­cial Re­port­ing Ad­vis­ory Group has pub­lished an EFRAG Update sum­mar­ising public tech­nical dis­cus­sions held and de­cisions made during June 2021; Accountancy Europe’s recent publication Building a credible Green Bond Market presents the accountancy profession’s views on how to strengthen the confidence in the green bond market in light of the European Union Green Bond Standard (EU GBS) proposal. Read more on these and other developments that may be of interest to members below. Financial Reporting The European Fin­an­cial Re­port­ing Ad­vis­ory Group (EFRAG) has pub­lished an EFRAG Update sum­mar­ising public tech­nical dis­cus­sions held and de­cisions made during June 2021.  In the latest IFRS Interpretations Committee Podcast, IFRS Interpretations Committee Chair and Vice-Chair of the International Accounting Standards Board Sue Lloyd joins Technical Staff Member Patrina Buchanan to talk about recent activities to support the consistent application of IFRS Standards during the second quarter of 2021 The International Accounting Standards Board (IASB) is holding a live webinar for all stakeholders on its Request for Information Third Agenda Consultation on Wednesday 14 July 2021. This webinar will provide an overview of the agenda consultation and give participants an opportunity to ask questions. The deadline for comments on the Request for Information Third Agenda Consultation is 27 September 2021. The June 2021 IFRS for SMEs Update is now available. The IFRS for SMEs Update is a staff summary of news, events and other information about the IFRS for SMEs® Standard and related SME activities. The staff summary has not been reviewed by the IASB. Audit In November 2020, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued a revised ethical standard for auditors,  Ethical Standard for Auditors (Ireland) 2020. The revisions build on existing changes made to the standards in 2017 which implemented the requirements of the EU Audit Regulation and Directive. The purpose of the Technical Release (TR 02/2021) Reporting Breaches of Ethical Standard for Auditors (Ireland) 2020 is to alert members to these new requirements and to provide an example of the report that may be submitted to the Recognised Accountancy Body and IAASA. Sustainability Accountancy Europe’s recent publication Building a credible Green Bond market presents the accountancy profession’s views on how to strengthen the confidence in the green bond market. In light of the European Union Green Bond Standard (EU GBS) proposal, The European Commission have issued their Strategy for Financing the Transition to a Sustainable Economy. The new sustainable finance strategy aims to support the financing of the transition to a sustainable economy by proposing action in four number of areas: transition finance, inclusiveness, resilience and contribution of the financial system and global ambition. Read more here. Other areas of interest Registration opens on 26 July 2021 for the Central Register of the Beneficial Ownership of Trusts (CRBOT). Trustees (or their agents, advisors or employees) will register through the ‘Trust Register’ portal on Revenue's Online Service (ROS). Anti-money laundering legislation requires each EU Member State to establish the CRBOT. The purpose of the CRBOT is to help prevent money laundering and terrorist financing by improving transparency on who ultimately owns and controls Irish trusts. For trusts that were established on or before 23 April 2021, the registration deadline is 23 October 2021. Trusts created after 23 April 2021 must be filed within 6 months of their creation. Read more here. The Central Bank of Ireland published their Q3 Quarterly Bulletin. Speaking on the release, Mark Cassidy, Director of Economics and Statistics said “As the COVID-19 restrictions have relaxed, we are seeing that domestic economic activity is rebounding. While the possibility of a more protracted recovery in certain sectors cannot be discounted, the prospects for the economy as a whole appear to be more favourable, and risks to the growth outlook appear to be relatively balanced. The progress of the vaccination programme, more positive consumer and business sentiment and supportive fiscal and monetary policy all bolster the outlook. With domestic demand back above pre-pandemic levels next year, domestic policy should increasingly focus on supporting people’s move into employment, ensuring resilience in the public finances, and addressing structural and longer-term challenges in areas such as housing and climate change.” The new Chair of the IASB Andreas Barckow, has of­fi­cially taken up his role. The World Standard-setters Conference will take place virtually on 27–28 September. The event  provides an opportunity for national standard-setters to get an update on and discuss the IFRS Foundation’s activities. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.         

In November 2020, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued a revised ethical standard for auditors,  Ethical Standard for Auditors (Ireland) 2020  (https://www.iaasa.ie/Publications/Auditing-standards). The revisions build on existing changes made to the standards in 2017 which implemented the requirements of the EU Audit Regulation and Directive.    The revised Ethical Standard includes a new requirement for audit firms to make reports of breaches of the Ethical Standard to the relevant competent authority and now explicitly prescribes reporting of breaches to those charged with governance. The purpose of the Technical Release (TR 02/2021) Reporting Breaches of Ethical Standard for Auditors (Ireland) 2020 is to alert members to these new requirements and to provide an example of the report that may be submitted to the Recognised Accountancy Body and IAASA. Please note the revised standard is effective from 15 July 2021.

Welcome to this week’s Technical Roundup.   In developments this week, The Institute have issued Technical Alert (TA 02/2021) Guidance on the revised Ethical Standard for Auditors (Ireland) 2020 to highlight to members the key new requirements of the Ethical Standard applicable in Ireland from 15 July; One of the biggest factors influencing the public's trust and confidence in charities is that the organisation does what it says it will.  According to new research from the Charity Commission for Northern Ireland, 87% of respondents marked 'doing what they say they will do' as a major factor that influences their trust in a charity. Read more on these and other developments that may be of interest to members below. Audit Revised Ethical Standard for Auditors The Institute have issued Technical Alert (TA 02/2021) Guidance on the revised Ethical Standard for Auditors (Ireland) 2020 to highlight to members the key new requirements of the Ethical Standard applicable in Ireland from 15 July. Sustainability At a CFA In­sti­tute sym­posium this week, Erkki Liik­anen, Chair of the IFRS Found­a­tion Trust­ees, talked about the Found­a­tion’s work to meet the in­form­a­tion needs of in­vestors and other capital market par­ti­cipants re­gard­ing sus­tain­ab­il­ity-re­lated in­form­a­tion. The Board of the In­ter­na­tional Or­gan­iz­a­tion of Se­cur­it­ies Com­mis­sions (IOSCO) has pub­lished a report on issuers’ sus­tain­ab­il­ity-re­lated dis­clos­ures that elab­or­ates on IOSCO's vision and ex­pect­a­tions for the IFRS Found­a­tion’s work towards a global baseline of in­vestor-fo­cused sus­tain­ab­il­ity stand­ards to improve the global con­sist­ency, com­par­ab­il­ity and re­li­ab­il­ity of sus­tain­ab­il­ity re­port­ing. In ad­di­tion, the manuscript of a speech by IOSCO Chair Ashley Alder on the 'crucial' IFRS global baseline has been made avail­able. Global practices for sustainability assurance—including the prevalence of assurance, level of assurance, and standard and practitioner used—varies widely by jurisdiction, according to a new study from the International Federation of Accountants (IFAC) and the AICPA & CIMA (representing the Association of International Certified Professional Accountants). Financial Reporting The IASB will be holding a webinar on 13 July 2021 to provide an over­view of Ex­pos­ure Draft (ED) ‘Man­age­ment Com­ment­ary’. Fol­low­ing the IASB's June 2021 meeting, they have ana­lysed the IASB work plan to see what changes have res­ul­ted from the meet­ings and other de­vel­op­ments since it was last revised in May 2021. Three new main­ten­ance pro­jects have been added to the plan. The IFRS Foundation held a webinar about the International Accounting Standards Board’s Exposure Draft Disclosure Requirements in IFRS Standards—A Pilot Approach. The webinar featured a question and answer session with Board Members Tadeu Cendon and Tom Scott, exploring in more detail the proposed new approach to developing disclosure requirements in IFRS Standards. This included discussion of the Board’s views on particular aspects of the proposed approach, such as the application of judgement, comparability, auditability and enforceability and digital reporting. In this month’s IASB podcast, Hans Hoogervorst and Sue Lloyd, Chair and Vice-Chair of the International Accounting Standards Board (Board) respectively, talk about the Board’s discussions at the meeting held virtually from 22 and 23 June 2021. Topics discussed on the podcast include the addition of narrow-scope amendment projects related to the initial application of IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments; IAS 1 Presentation of Financial Statements; and Supplier Finance Arrangements to the Board’s work plan. On Tuesday 6 July 2021, EFRAG will hold a webinar, in which the speakers will express their views on the issues related to accounting for crypto-assets (liabilities) under IFRS standards. Other areas of interest One of the biggest factors influencing the public's trust and confidence in charities is that the organisation does what it says it will.  According to new research from the Charity Commission for Northern Ireland, 87% of respondents marked 'doing what they say they will do' as a major factor that influences their trust in a charity. UK Corporate reporting review In March, the UK Government published a consultation Restoring trust in audit and corporate governance, which contains a number of proposals for enhancing the regulation of corporate reporting. One proposal is to give the regulator a statutory power to publish a summary of its findings of its individual reviews of company reports and accounts.  As an interim step towards greater transparency of its corporate reporting review function, the FRC is publishing summaries of its findings of recently closed substantive reviews. https://www.frc.org.uk/accountants/corporate-reporting-review/crr-reviews-of-corporate-reporting/company-names-published-in-june-2021 For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.       

In November 2020, the Irish Auditing and Accounting Supervisory Authority (IAASA) issued a revised ethical standard for auditors (https://www.iaasa.ie/Publications/Auditing-standards ).  The revisions build on existing changes made to the standards in 2017 which implemented the requirements of the EU Audit Regulation and Directive.  The Institute have issued the attached Technical Alert (TA 02/2021) Guidance on the revised Ethical Standard for Auditors (Ireland) 2020 to highlight to members the key new requirements of the Ethical Standard applicable in Ireland and to add some clarification. In particular we draw attention to the effective date of the revised standard. The Ethical Standard for Auditors (Ireland) 2020 is effective from 15 July 2021. There are limited transition provisions.  These are set out on page 30 of the Ethical Standard and in Section 5 of the Technical Alert. Firms may complete engagements relating to periods commencing before 15 July 2021, in accordance with existing ethical standards, putting in place any necessary changes in the subsequent engagement period. Engagements to provide previously non-prohibited non-audit services entered into before 15 July 2021, and for which the firm has already commenced work may continue until completed in accordance with the original engagement terms, subject to the application of appropriate safeguards.