Welcome to the latest edition of Technical Roundup.
In developments since the last edition, IAASA has issued a revised version of ISA (Ireland) 505 – External Confirmations. The revised standard is effective for audits of financial statements for periods beginning on or after 15 December 2024 with early adoption permitted. The Financial Reporting Council has welcomed the culmination of the first phase of the government’s review of non-financial reporting requirements for UK companies which aims to simplify the reporting framework as part of its Smarter Regulation agenda.
Read more on these and other developments that may be of interest to members below.
Financial Reporting
The Financial Reporting Council has issued its final amendments to the FRS 102 and FRS 105 accounting standards, which will finalise the periodic review of the standards. The amendments (of which most come into effect from 1 January 2026) include changes to revenue recognition rules under FRS 102 and 105, and changes in the way some leases are measured & recognised under FRS 102. For more information please see our recent news item.
The FRC has issued some guidance material relating to the amendments. They are also planning a webinar to discuss the amendments to the standards on 15 May.
The International Accounting Standards Board’s (IASB) deadline for responding to their recent Exposure Draft Financial Instruments with Characteristics of Equity Proposed amendments to IAS 32, IFRS 7 and IAS 1 has passed. The Financial Reporting Technical Committee of Chartered Accountants Ireland has issued its response to this consultation, which includes some recommendations to the IASB in finalising the project.
The UK Endorsement Board has also published its response to the same consultation.
The IASB has announced that it plans to issue its next IFRS standard, IFRS 18 Presentation and Disclosure in Financial Statements, on 9 April 2024. The IASB, in conjunction with the Education Committee and the Financial Reporting Standards Committee of the European Accounting Association (EAA) is holding an education workshop on 22 April to provide an overview of the standard.
The IASB has published for public comment the Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard, which supplements the exposure draft published in September 2022. The deadline for responding to this consultation is 31 July 2024.
The IFRS Interpretations Committee (IFRIC) has issued its Q1 2024 podcast. This considers some recent activity, including the treatment of climate related commitments under IAS 37 Provisions Contingent Liabilities and Contingent Assets. IFRIC has also released its March 2024 update.
The IFRS Foundation has issued its March 2024 monthly news summary as well as its National Standard Setters Newsletter. The IASB has also issued a March 2024 update and podcast.
EFRAG, the European Financial Reporting Advisory Group has extended the deadline for responding to its two surveys on the post-implementation review of IFRS 16. The deadline remains open until 22 April 2024.
The UK Endorsement Board has announced some outreach activities to understand UK stakeholder views on IASB’s Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment.
The FRC has published its Plan and Budget for 2024-25, outlining its aims for a year of consolidation and prioritisation to support public interest outcomes and UK economic growth.
The UK Government has announced its plans to legislate following its non-financial reporting review. The planned measures include a planned increase to the company size thresholds by approximately 50%, as well as other measures designed to streamline and improve reporting requirements. The FRC has welcomed the announcement.
The IFRS National Standard Setters March 2024 Newsletter has been issued which features details on the upcoming 2024 World Standard Setters Conference in London and ISSB recent highlights.
Auditing
IAASA has issued a revised version of ISA (Ireland) 505 – External Confirmations. The main changes to the standard relate to:
- Clarification on what constitutes an electronic external confirmation.
- Prohibition on the use of negative external confirmations.
- Strengthened link with ISA (Ireland) 330 The Auditor’s Responses to Assessed Risks.
- Enhanced requirements concerning the investigation of exceptions.
The revised standard is effective for audits of financial statements for periods beginning on or after 15 December 2024, with early adoption permitted. The revised ISA (Ireland) 505 is available here.
Anti–money laundering and sanctions
We have recently prepared an information booklet entitled The Economic Crime and Corporate Transparency Act 2023 – Changes in Companies House outlining the first set of changes introduced by Companies House on 4 March 2024. The Economic Crime and Corporate Transparency Act gives Companies House, along with the Registrar of Companies for Scotland and the Registrar of Companies for Northern Ireland, the power to play a more significant role in tackling economic crime and supporting economic growth. Over time, its measures will lead to improved transparency and more accurate and trusted information on its registers.
The Dept. Of Justice has recently published Guidelines for Designated Persons supervised by its Anti-Money Laundering Compliance Unit (AMCLU). The purpose of the Guidelines is to assist those Designated Persons supervised by the AMLCU in understanding and meeting their Anti-Money Laundering and Countering the Financing of Terrorism obligations under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 as amended and related Statutory Instruments. Please click here for a press release with some further details.
Insolvency
The CCAB-I Insolvency Committee has recently published Technical Alert - Cross Border Insolvency and Brexit. This Technical Alert considers the impact of Brexit on both the recognition of Irish Insolvency proceedings in the UK and the recognition of UK Insolvency proceedings in Ireland.
Sustainability
The International Sustainability Standards Board (ISSB) has issued an update on the jurisdictional progress made in adopting the IFRS Sustainability Disclosure Standards. This includes details of the countries who are consulting on their adoption, as well as those who have completed their jurisdictional consultations.
The ISSB has issued its March 2024 update and podcast.
The FRC has announced the launch of its first market study to examine the UK market for sustainability assurance services. The study aims to ensure this rapidly growing market is functioning effectively and providing high quality assurance over companies' sustainability reporting.
The GRI has published three new guidance documents to support global policymakers. These documents cover Double Materiality, Due Diligence and the CSRD.
The Ministers for Finance and for Public Expenditure recently published the Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024. The Bill will provide for the establishment of the two funds in its title. One is the Future Ireland Fund which is for the purpose of supporting State future expenditure pressures including ageing, climate, digitalisation and other fiscal and economic challenges in a consistent and sustainable manner from 2041 onwards. The other is the Infrastructure, Climate and Nature Fund which is for the purpose of supporting State expenditure, in 2026 or any year after that to assist with climate change objectives and nature, water quality and biodiversity issues. The Fund will provide for resources for spending in a future downturn to support expenditure through the economic and fiscal cycle and to support designated environmental projects. Please click here for a press release on the Future Ireland Fund and Infrastructure, Climate and Nature Fund Bill 2024 which provides further information.
Other news
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its third consultation package under the Markets in Crypto-Assets Regulation (MiCA).
As part of the Financial Reporting Council (FRC)’s review of the UK Stewardship Code 2020, a series of roundtable discussions are being held on the efficacy of the 2020 Code in order to receive feedback on areas for potential improvement and the extent to which the Code continues to meet its stated purpose. These discussions will run from 26 March to 7 May.
The FRC and the Australian Securities and Investment Commission (ASIC) have announced a Memorandum of Understanding on Reciprocal Arrangements (MOURA) making it easier for auditors to work between both countries.
The UK’s Financial Intelligence Unit has issued the 25th edition of its SARs in Action magazine which focusses on the Illegal Wildlife Trade.
Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy, is the first strategy of its kind for Ireland which aims to build a successful and impactful offshore wind energy industry. It was developed as part of close ongoing collaboration between the Department of Enterprise, Trade and Employment and other government departments and agencies within the Offshore Wind Delivery Taskforce (OWDT).
Proposed new company law provisions
The Department of Enterprise, Trade and Employment published the General Scheme of Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 on 15 March 2024. The General Scheme proposes wide ranging changes to the Companies Act 2014. Changes which may be of interest to readers include a change to loss of audit exemption, receiverships, SCARP and winding up, three new grounds for involuntary strike off, changes for Corporate Enforcement Authority and provisions relating to IAASA. You can click here to read an Institute news item giving more detail about the proposed changes.
Corporate Enforcement Authority
Readers can also find more detailed information on changes that the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 proposes for the Corporate Enforcement Authority (CEA) in the CEA’s recently published information note and press statement.
For further technical information and updates please visit the Technical Hub on the Institute website.
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