Welcome to this week’s Technical Roundup.
The IASB has issued its June 2022 IFRS for SMEs Accounting Standard Update. They have also stated that they expect to publish the Exposure Draft proposing amendments to the standard in September 2022 and EU policymakers have reached an agreement on the Corporate Sustainability Reporting Directive (CSRD).
Read more on these and other developments that may be of interest to members below.
- Technical Roundup is taking a break for the summer and the next Roundup will be issued on Friday 2 September. Any updates during this period will be published on the technical hub on the Institute's website. -
Financial Reporting
EFRAG are reminding preparers and users of IFRS 15 that they can contribute to the ongoing survey that they are supporting.
The IASB has issued its June 2022 IFRS for SMEs Accounting Standard Update. They have also stated that they expect to publish the Exposure Draft proposing amendments to the standard in September 2022.
The IASB has also issued its June 2022 news summary and its June 2022 podcast.
The UK Endorsement Board has published a Draft UK Endorsement Criteria Assessment on a set of three narrow-scope amendments to international accounting standards published by the IASB in 2021 but with an effective date of 1 January 2023.
Audit
The FRC will be holding two webinars on audit and corporate governance reform.
IAASA has published a report on good repute for Statutory Auditors and Audit firms. This provides a summary of how the recognised accountancy bodies (RABs), that approve and supervise Statutory Auditors and Audit firms in Ireland, consider the good repute of these parties.
Sustainability
Several United Nations (UN) organisations have responded with a joint statement to the proposed standards of the International Sustainability Standards Board (ISSB).
EU policymakers have reached an agreement on the Corporate Sustainability Reporting Directive (CSRD). The text introduces obligations for companies to publicly disclose information on their sustainability impacts, risks and opportunities in their management report based on mandatory sustainability reporting standards. The reported sustainability information will have to be independently audited.
EFRAG are continuing to hold outreach events to discuss the Exposure Drafts on the first set of Draft European Sustainability Reporting Standards (ESRS). Their full program of events can be accessed on their website.
The UK Endorsement board held an outreach event on the IFRS Foundation’s International Sustainability Standards Board’s (ISSB) exposure drafts. A recording of the event can be accessed here.
Other areas of interest
Europol recently published its Environmental Crime - Threat assessment 2022 in the age of climate change. You can access the report here. Europol writes that opportunities for high profits, legal discrepancies among countries, low risk of detection and marginal penalties make environmental crime a very attractive business for criminal entrepreneurs. Their report combines the analytical results of the 2021 Serious and Organised Crime Threat Assessment (SOCTA) with the operational intelligence gathered by Europol, in order to provide the most comprehensive analysis of environmental crime threats targeting the EU.
The Irish Central Bank has issued a recent reminder that scams are on the rise, so it is important to be able to recognise a potential scam and know how to protect yourself. They have issued a video and explainer on how to spot a scam using the SAFE test: Stop, Assess, Fact check, expose and report. You can read more and access the video here.
The Executive Director, Markets of the UK Financial Conduct Authority (FCA) recently gave a wide-ranging speech at the CityUK Annual Conference. Among other things she spoke about crypto. She said the FCA is looking closely at it (crypto) and the opportunities and challenges associated with it and is working with the UK government and others to explore what regulatory standards could be put in place to manage risks to consumers, while boosting market integrity and competition in supporting the digitalisation of financial services and markets. You can click here to read the full content of her speech.
FATF recently issued its Targeted Update on Implementation of The FATF Standards On Virtual Assets And Virtual Asset Service Providers. Read more details here. The update focusses on FATF’s Travel Rule, which requires the private sector to obtain/exchange beneficiary and originator information with virtual asset transfers. It also provides a brief update on general implementation of FATF’s Recommendation 15 (you can read FATF recommendations here) and its Interpretative Note, as well as emerging risks and market developments that FATF continues to monitor, such as Decentralised Finance (DeFi), Non-Fungible Tokens (NFTs), and unhosted wallets.
Chartered Accountants Ireland was pleased to co-host the launch of the Central Bank of Ireland’s Quarterly Bulletin in the Central Bank offices in Dublin on Thursday 7 July. The event was an opportunity to discuss the Central Bank’s Quarterly Bulletin and the general economic outlook. Following a short presentation, attendees were invited to ask questions from the panel moderated by Dr Brian Keegan, Director of Advocacy and Voice, Chartered Accountants Ireland. The panel included Robert Kelly, Director of Economics and Statistics, Central Bank of Ireland, Martin O’Brien, Head of Irish Economic Analysis, Central Bank of Ireland and Loretta O’Sullivan, Chief Economist, Bank of Ireland.
Last week the Central Bank (CB) hosted the inaugural meeting of the Climate Risk and Sustainable Finance Forum and published its Sustainable Investment Charter. The Climate Forum will meet twice a year. Click here for more information in the press release. The purpose of the Charter is to guide the Central Bank in considering how sustainable investment principles will apply to their investment practices. CB will report annually on progress made in their commitment to incorporating sustainable investment principles and the charter will be updated every three years.
The establishment of the Corporate Enforcement Authority (CEA) was announced by the Dept. of Enterprise Trade and Employment in a press release on 7 July. The CEA is a new statutory independent agency with the staff and resources to investigate and prosecute breaches of company law. The Office of the Director of Corporate Enforcement recently encouraged people to follow the Corporate Enforcement Authority on LinkedIn and Twitter at @CEA_Ireland and here is a link to their website which is up and running with information and resources.
Accountancy Europe has published an article entitled “SMP Talks: How small practitioners can keep bringing value to SMEs”. This highlights some lessons and skills learned by a small practitioner in Europe.
The Workplace Relations Commission recently published its 2021 Annual Report. Please see here for the press release and here to get a copy of the report.
The Dept. of Enterprise Trade and Employment (DETE) recently published its enterprise newsletter for July. In it are details of topical matters such as DETE’s public consultations on the preparation of the White Paper on Enterprise and one on the phasing in of a living wage and a further government low cost COVID-19 Loan Scheme for business.
The Pensions Authority has recently publicised the introduction of several legislative amendments. They are amendments to the Occupational Pension Schemes (Disclosure of Information) Regulations 2006 and amendments to the Trust RACs (Disclosure of Information) Regulations 2007. You can read details in their news items on their website.
For further technical information and updates please visit the Technical Hub on the Institute website.