Welcome to the latest edition of Technical Roundup.
In developments since the last edition, Chartered Accountants Ireland have responded to IAASA’s consultation on the adoption of a sustainability assurance standard in Ireland. Fallon Judge, Director of Civil Enforcement at the Corporate Enforcement Authority (CEA), provided a very informative session and slides during a recent edition of our Practice News Webinar. The IASB have also issued its latest standard- IFRS 18.
Read more on these and other developments that may be of interest to members below.
Financial Reporting
The International Accounting Standards Board (IASB) has published its latest standard IFRS 18 Presentation and Disclosure in Financial Statements. The new standard will be effective for periods commencing on or after 1 January 2027 (with early adoption permitted) and will replace IAS 1 Presentation of Financial Statements. The new standard carries forward many requirements from IAS 1 unchanged and seeks to improve comparability of the statement of profit or loss, enhance transparency of management defined performance measures and group information in a more useful manner in the financial statements.
To support the implementation of IFRS 18, the IASB has included supporting information on an IFRS 18 implementation webpage. This webpage contains educational materials, webinars and implementation questions.
Following the issue of IFRS 18, EFRAG, the European Financial Reporting Advisory Group, has updated its Endorsement Status Report.
EFRAG and the IASB are holding webinars to introduce IFRS 18 on the 7th and 11th June.
The IASB has issued an April 2024 IFRS for SMEs Update, which summarises news, events and other information about the IFRS for SMEs Accounting Standard. The update includes details of recent proposed amendments to the standard.
The IASB has concluded its project on Business Combinations under Common Control and has published a project summary which explains the reasons behind the IASB’s decision in November 2023 not to develop requirements for reporting Business Combinations under Common Control.
In its recent article entitled “Digital financial reporting—Facilitating digital comparability and analysis of financial reports”, the IFRS Foundation discuss what digital financial reports are, how they are created, and their benefits to stakeholders and other investors.
EFRAG has published its March 2024 update. This summarises public technical discussions held, and decisions taken during the month.
EFRAG has been gathering stakeholders views on the post-implementation review of IFRS 16 leases and the deadline for submission of views in relation to this is 22 April 2024.
EFRAG has published its final comment letter on the IASB’s Exposure Draft ED/2023/5 Financial Instruments with Characteristics of Equity (Proposed amendments to IAS 32, IFRS 7 and IAS 1). Whilst agreeing with many of the clarifications, EFRAG made some recommendations to the IASB to improve the standards.
EFRAG has issued a Feedback Statement which summarises the main comments received on its 2022 Discussion Paper Accounting for Variable Consideration- From a purchaser’s perspective.
Accountancy Europe has published its April 2024 SME Update.
The UK Endorsement Board (UKEB) has issued a report entitled “The IASB Exposure Draft: Regulatory Assets and Liabilities- A Preliminary Economic Assessment”. The purpose of the report is to provide information and economic analysis that will inform the UKEB’s assessment of the wider economic impacts of a new IFRS standard covering Regulatory Assets and Liabilities, if adopted in the UK in future.
The consultation period for the UKEB’s Endorsement Criteria Assessment on Lack of Exchangeability – Amendments to IAS 21 closes on 6 May 2024.
The UKEB have announced some outreach activities on the IASB’s Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment.
Auditing and Assurance
Chartered Accountants Ireland has responded to IAASA’s consultation on the adoption of a sustainability assurance standard in Ireland.
Anti–money laundering and sanctions
The European Commission last month published a report from the Commission to the European Parliament and the Council on the implementation of the 4th Anti-Money Laundering Directive. This report assessed how the 4th Anti-Money Laundering Directive was implemented. It gives a comprehensive review and touches on particular areas such as beneficial ownership and politically exposed persons.
Insolvency
The next issue of Introduction to members of the CCAB-I Insolvency Committee was recently published and gives an insight into the career and experience of Committee member Shane McAleer of Somers, Murphy & Earl.
Sustainability
In the first episode of its new podcast series entitled “the ISSB Implementation Insights podcast” the IFRS Foundation discuss the recent Transition Implementation Group meeting on IFRS S1 and IFRS S2.
The European Commission is hosting a half day event entitled “Supporting companies in applying the European Sustainability Reporting Standards (ESRS)” on 16th May. The event will seek to showcase ongoing initiatives and discuss ideas for further mechanisms to support companies that apply the new European Sustainability Reporting Standards.
EFRAG is preparing guidance to help companies disclose their transition plans in line with the ESRS standards and are seeking assistance from European companies to provide input on a variety of practices and challenges in relation to this. Interested entities can apply by 23 April 2024.
The Global Reporting Initiative (GRI) and the Taskforce on Nature-related Financial Disclosures (TNFD) have announced their collaboration to support the corporate reporting needs of market participants globally. In doing so they have announced some plans for further joint publications.
IFAC, the International Federation of Accountants has released a publication which sets out four key areas where accountants need to update their knowledge to meet the growing demand for high-quality sustainability-related information.
Central Bank of Ireland
On 9 April 2024, the Central Bank of Ireland published its updated approach to Expectations for Authorisation of Payment and Electronic Money Institutions and Registration of Account Information Service Providers together with a document setting out its expectations regarding the authorisation/registration of these regulated fintech entities. Click here for more information.
The Central Bank recently published its Financial Conditions of Credit Unions Report which provides an update on the financial performance and position of the sector for the financial year ended 30 September 2023. The publication provides sectoral data and commentary and identifies key trends and notes that the Credit Union Amendment Act 2023, enacted last December, is a significant development and will provide new business opportunities for credit unions.
In other Central Bank news, the Director Financial Regulation, Policy and Risk recently spoke about the Central Bank’s current consultation on its proposed review of the Consumer Protection Code. The review seeks to provide enhanced clarity and predictability, secure customers’ interests and modernise the code. Click here to read the director’s comments.
Corporate Enforcement Authority
The Corporate Enforcement Authority (CEA) has recently issued Information Notice 2024/1 – ‘Circumstances leading to Disqualification under the Companies Act 2014 and the associated consequences.’ The Information Note provides guidance on the purpose and effects of disqualification, and on the various ways in which a person can be disqualified from acting as a company director and also provides guidance on the consequences of breaching a disqualification.
The CEA have also issued their April 2024 Newsletter. This focusses on the information note mentioned above, recent media activities and other relevant developments.
Fallon Judge, Director of Civil Enforcement at the CEA provided a very informative session and slides during Friday 12 April 2024 edition of Practice News Webinar. Fallon gave a comprehensive overview of the work of the CEA including its investigative capabilities, sources of work and its approach to enforcement. She also drew attention to the information available on the Authority’s website including recent information notes on accepting directorships and guidance regarding disqualification under company law referred to above. A free recording of the webinar is available on the Institute’s YouTube Channel.
Department of Enterprise Trade and Employment
The Department of Enterprise Trade and Employment and Knowledge Transfer Ireland are jointly hosting a full-day conference on 23rd April 2024 at the Radisson Blu Hotel, Golden Lane Dublin 8 from 10am.The conference is entitled “Unlocking the Value of Knowledge Transfer Conference” This is part of the event series that the European Commission’s Directorate General for Research and Innovation are conducting across Europe. Neale Richmond, T.D., Minister for Business, Employment and Retail will open the conference. You can read more here about the conference and how to register .
Other
The European Securities and Markets Authority (ESMA) has issued the fourth edition of its Report on the Quality and Use of Data which provides transparency on how the data collected under different regulations is used systematically by authorities in the EU and clarifying the actions taken to ensure data quality.
The Competition and Consumer Protection Commission is in the initial stages of a research study examining the state of competition across several sectors of the Irish economy. This project will provide an overview of the evolution of competition in Ireland over recent years and in doing so, it may identify competition or consumer protection issues that require further consideration or investigation. It is inviting interested parties to share their views. Click here for more information and details on how to contribute to the study. The closing date for submissions is 5pm Friday 17 May 2024.
For further technical information and updates please visit the Technical Hub on the Institute website.
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