Roundup

Welcome to this week’s Technical Roundup. In developments this week, the CCAB-I Insolvency Committee has recently published Technical Release 01/2024 - Personal Insolvency (Amendment) Act 2021. This TR outlines how the provisions of the Act reflect practical amendments arising from Covid-19 and also the evolving nature of the existing legislation governing personal insolvency.  In other news the three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) have launched a second consultation related to the joint guidelines on the system for the exchange of information relevant to fit and proper assessments.  Read more on these and other developments that may be of interest to members below. Auditing TR 04 2023 Reporting on covenants  This new guidance, issued in December 2023, provides assistance to firms reporting in connection with financial covenants in loan agreements and other facilities.  Loan agreements often contain a number of covenants with which the borrower is expected to comply. Compliance with such covenants is intended to help assure the lender of the continuing security for the loan; borrowers are expected to provide periodic reports on their compliance, which may include a requirement for the borrower to provide the lender with certain reports prepared by their auditor. This Technical Release gives guidance to professional accountancy firms and practitioners in these situations. This TR replaces M36 Firms' Reports and Duties to Lenders in Connection with Loans and other Facilities to Clients and Related Covenants. The TR can be accessed on the Institute's Technical Hub.  In December the FRC published an updated overview of competition in the UK's audit market for public interest entities (PIE). The report shows a small increase in market share for challenger audit firms but the Big Four accounting firms continue to dominate, earning 98% of FTSE 350 audit fees in 2022. In December 2023 the IAASB issued the new International Standard for the Audits of Less Complex Entities. Where it is adopted, or permitted, the standard is effective for audits of financial statements for periods beginning on or after December 15, 2025, (i.e. 2026 calendar year audits) with early adoption being permitted and encouraged. The standard has not yet been adopted for use in Ireland or the UK. The standard can be downloaded from the IAASB website. Financial Reporting The International Accounting Standards Board (IASB) has issued its December 2023 update. This includes updates to its various research and standard setting projects and maintenance projects considered at its December meeting. The IASB has also released its December 2023 podcast. The IFRS Foundation have issued a summary of news and events for December 2023. The IASB has published its December 2023 IFRS for SMEs Accounting Standard Update. This includes an update on the IASB’s deliberations of the proposals contained in the draft third edition of the IFRS for SMEs standard. The update also includes details of the requirements to be included in the forthcoming IFRS Accounting Standard for SMEs (Subsidiaries without Public Accountability), which is expected to be issued in the first half of 2024. Following the endorsement of amendments to IAS 1 Presentation of Financial Statements, EFRAG has issued its updated Endorsement Status Report. The Financial Reporting Council (FRC) has launched a consultation on its plan and budget for 2024-25 which sets out its priorities and resources for next year. Insolvency The CCAB-I Insolvency Committee has recently published Technical Release 01/2024 - Personal Insolvency (Amendment) Act 2021. This Technical Release outlines how the provisions of the Personal Insolvency (Amendment) Act, 2021 reflect practical amendments arising from Covid-19 and also the evolving nature of the existing legislation governing personal insolvency. The previous technical guidance document TA/02 2016 Personal Insolvency (Amendment) Act 2015 is still of relevance and guidance to members save for any amendments set out herein. Sustainability The International Sustainability Standards Board (ISSB) have issued its December 2023 update and podcast. These releases reflect on the ISSB’s progress in 2023, as well as their highlights in December. The ISSB has published amendments to the SASB Standards. These are intended to enhance their international applicability. EFRAG, the European Financial Reporting Advisory Group has issued a call to SMEs for participants to test its forthcoming exposure drafts on voluntary sustainability reporting standards for non-listed SMEs and ESRS for listed SMEs. EFRAG and the Taskforce on Nature-related Financial Disclosures (TNFD) have announced that they have signed a cooperation agreement and have highlighted their shared commitment to enhance corporate transparency related to biodiversity and ecosystems. On 22 December 2023, the ESRS Delegated Act and Annexes were published in the EU Official Journal. Details of its journey from Project Taskforce to Delegated Act are summarised on EFRAG’s page. In order to support the implementation of the European Sustainability Reporting Standards (ESRS), EFRAG has published three draft Implementation Guidance documents. These documents are open for public comment until 2 February 2024. The publications issued cover the following areas; Materiality assessment implementation guidance Value chain implementation guidance Detailed ESRS datapoints implementation guidance Anti–money laundering The Professional Standards Dept of Chartered Accountants Ireland has recently published two news items which members should take note of. One news item relates to high-risk behaviours and typologies associated with the Trust and Company Service Provider (TCSP) sector and gives details of an AML alert from the UK National Economic Crime Centre to highlight the high-risk behaviours and typologies associated with the TCSP sector. The other news item highlights the risks associated with verification work which might be undertaken by firms in relation to the UK Register of Overseas Entities. You can read details of the news item and the risks here. Other news The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) have launched a second consultation related to the joint Guidelines on the system for the exchange of information relevant to fit and proper assessments.  The Central Bank of Ireland issued its final Quarterly Bulletin of 2023 on 19 December. The Corporate Enforcement Authority (CEA) issued its first newsletter in December 2023. The December issue can be accessed by the following link https://account.createsend.ie/t/r-7C238FCAE6B22F622540EF23F30FEDED. Readers should note that there is the subscribe button on the CEA website for people to sign up to CEA newsletters for 2024.  You can subscribe to the CEA newsletter in 2024 for updates on CEA news and events as well as relevant updates on company law by clicking the following link  Subscribe to the CEA Newsletter. The Pensions Authority has published its engagement audit findings report for 2023.  The purpose of this report is to share observations on the key findings identified during the Authority’s engagement and audit activity in 2023. The Pensions Authority has published information on the supervisory review process (SRP) provided for under the Pensions Act, following the transposition of the IORP II Directive. The COVID “interim period” which was introduced under the Companies (Miscellaneous Provisions) (Covid-19) Act 2020 introduced measures such as virtual meetings and increasing the threshold for when a company is deemed unable to pay its debts. The interim period has been extended a number of times but most of the measures are gradually being unwound. At the end of 2023 the Dept. of Enterprise Trade and Employment (DETE) announced that the Minister has further extended the interim period in respect of holding virtual meetings, including AGMs. The provisions have been further extended to 31 December 2024. Click here to read details of the extension in the DETE press release and here for our recent news item. However, the measure which increased to in excess of €50,000 the amount at which a company is deemed to be unable to pay its debts in the interim period is not renewed. Therefore, beginning 1 January 2024, a company is deemed to be unable to pay its debts under section 570 of the 2014 Act where indebted to a creditor in an amount exceeding €10,000 or indebted to two or more creditors in an amount exceeding €20,000. Click here for our recent news item. The Competition and Consumer Protection Commission CCPC has published its annual merger report, which includes statistics on the number of mergers and acquisitions notified to and reviewed by it in 2023. All mergers and acquisitions which reach certain financial thresholds must be notified to the CCPC and it examines whether any notified transaction could result in the substantial lessening of competition in markets for goods and services in the State. Click here for the press release and here to access a copy of the report. Click here to read more about the National Standards Authority of Ireland five New Year's resolutions that can bolster cyber-resilience in 2024, These are regular cybersecurity health checks, embrace multi-factor authentication, educate and empower employees, secure cloud environments and establish an incident response plan. The Minister for Finance recently published a progress update on review of funds sector in Ireland. The progress update highlights the main trends, risks, challenges and opportunities facing the funds industry in Ireland out to 2030, as identified in the responses to a consultation conducted in the summer of 2023. Click here for a press release with more details. For further technical information and updates please visit the Technical Hub on the Institute website. 

Welcome to this edition of Technical Roundup. In recent developments, the Dept of Enterprise, Trade and Employment has published the Digital Services Bill 2023 which will provide for the full implementation in Ireland of the EU Regulation on a Single Market for Digital Services and the International Auditing and Assurance Board issued the new International Standard for the Audits of Less Complex Entities on 6 December 2023. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has issued FRED 85 Draft amendments to FRS 101 Reduced Disclosure Framework – 2023/24 cycle. Every year, the FRC carry out a review of the FRS 101 standard to consider amendments made by the International Accounting Standards Board (IASB) to their standards, and whether such changes should result in an amendment to FRS 101. In FRED 85, the FRC are proposing minor changes to FRS 101 to ensure consistency with IAS 1 Presentation of Financial Statements. The FRC has published an insight report “Structured digital reporting – 2023 insights” which highlights some areas for focus for companies when producing their annual financial report in a structured digital format under FCA Rules. This includes some examples of best practice in the areas of tagging, usability & design and process. The FRC has issued version 2.0 of Technical Actuarial Standard 300: Pensions (TAS 300). The IFRS Foundation has released its November 2023 monthly news summary, which summarises their news items and events during the month. The IFRS Interpretations Committee (IFRIC) has issued its November 2023 update which summarises decisions made by the Committee in its public meetings. This includes details of some tentative agenda decisions on climate-related commitments under IAS 37 and disclosure of revenues and expenses for reportable segments under IFRS 8. The International Accounting Standards Board (IASB) has published a summary of its project on extractive activities which considered whether to amend or replace IFRS 6 Exploration for and Evaluation of Mineral Resources. The IASB has published a webcast which provides some insight into the forthcoming IFRS Accounting Standard for Subsidiaries. The standard is expected to be issued in the first half of 2024. EFRAG, the European Financial Reporting Advisory Group, has published its final comment letter in response to the IASB’s Exposure Draft- Annual Improvements – Volume 11. The UK Endorsement Board has also published its comment letter and feedback statement on the Exposure Draft. EFRAG has published its November 2023 update which summarises public technical discussions held and decisions taken during the month. The Pillar Two tax rules that will apply to companies with consolidated revenue over €750m are contained in the Finance No2 Bill that is making its way through the Oireachtas. In relation to the financial reporting implications of the Pillar Two tax rules, IAS 12 Revised and FRS 102/101 revised now set out financial reporting disclosure requirements for those companies. Assurance and Auditing The Financial Reporting Council (FRC) has published its annual inspection findings for Tier 2 and Tier 3 audit firms and a number require ‘significant improvement’. The findings outline that of the audits reviewed, 38% required only limited improvements, 24% required more than limited improvements and a further 38% required significant improvements. The FRC identified deficiencies in the audit of judgements and estimates, and going concern, both of which require audit teams to demonstrate robust professional scepticism. Firms must demonstrate improvement including investing in their audit methodology, human resources and audit quality functions, learning from things that went wrong or went well, and seeking to embed a culture that recognises and prioritises audit quality. The FRC is taking a number of actions to improve resilience and competition in the PIE audit market. The FRC has announced their areas of focus for 2024/25. The includes priority sectors are: Construction and Materials Food Producers Gas, Water & Multi-utilities Industrial Metals and Mining Retail These are for both corporate reporting reviews and audit quality inspections. ISA for LCE Following approval at their September 2023 meeting, the IAASB issued the new International Standard for the Audits of Less Complex Entities on 6 December 2023. Where it is adopted, or permitted, the standard is effective for audits of financial statements for periods beginning on or after December 15, 2025, (i.e. 2026 calendar year audits) with early adoption being permitted and encouraged. The standard has not yet been adopted for use in Ireland or the UK. The standard can be downloaded from the IAASB website. Sustainability The International Sustainability Standards Board (ISSB) have been providing updates on their activities at COP 28. These include; Their planned future cooperation with the International Organization for Standardisation towards effective communication about sustainability-related risks and opportunities. Details of the growing number of Organisations and jurisdictions who have committed to advancing the adoption or use of the ISSB’s climate-related reporting at a global level. An announcement that Emmanuel Faber will continue as ISSB chair until the end of 2027. Details of the progress made in advancing global sustainability disclosures since the establishment if the ISSB was announced at COP 26. The International Sustainability Standards Board has provided details of some new and updated resources coming into effect on 1 January 2024. These are intended to help companies apply the ISSB Standards IFRS S1 and IFRS S2. The IFRS Foundation has launched the IFRS Sustainability Knowledge Hub which seeks to support users of the ISSB standards. This is intended to help auditors, investors, regulators and stakeholders as they begin their reporting journey under the ISSB standards. IFAC have announced plans to revise the International Education Standards to bring greater focus to sustainability reporting and assurance, given the evolving role of accountants in the area of sustainability. Sanctions/Anti-money laundering The UK’s National Crime Agency and National Economic Crime Centre have issued an alert to financial institutions and other members of the UK regulated sector warning that Russia is trying to procure UK sanctioned goods through intermediary countries.  Sanctions imposed on Russia as a result of its invasion of Ukraine have had a significant impact on its ability to purchase products, including military supplies, on international markets. The alert provides information to UK businesses on common techniques suspected to be in use to evade sanctions on the export of high-risk goods, which Russia is using on the battlefield in Ukraine. The European Council and Parliament have reached a provisional agreement on creating a new European authority for countering money laundering and financing of terrorism (AMLA) - the centrepiece of the anti-money laundering package, which aims to protect EU citizens and the EU's financial system against money laundering and terrorist financing. Other News The Credit Union (Amendment) Bill 2022 has recently been sent to the President for signature. Click here for a government press release where the Minister for Financial Services, Insurance and Credit Unions welcomed the proposed amendments to the legislation which she said aim to bring about significant reforms for the credit unions sector in Ireland and represents a very significant piece of legislation that will have far-reaching positive implications for the credit union sector in the years to come. In other credit union news, the Central Bank of Ireland has issued their December Credit Union News publication which includes a reminder to all credit unions on key financial  considerations and other matters for consideration at year end including impairment reviews of assets, liquidity management, systems of control, cybersecurity and operational resilience (including outsourcing) and Lending Framework Review with an expectation of publishing analysis of the review in H1,2024. The Dept of Enterprise Trade and Employment recently published  the Digital Services Bill 2023, which will provide for the full implementation in Ireland of the EU Regulation on a Single Market for Digital Services. Click here for a press release giving more details on the Bill and the EU Regulation commonly referred to as  the Digital Services Act. The EU Regulation establishes a pioneering regulatory framework to protect EU users of digital services and their fundamental rights online. The press release notes that the Irish Digital Services Bill is a technical bill, drafted to address specific obligations on Member States of the EU to give effect to the supervision and enforcement provisions of the EU Regulation. The Bill does not add to or amend the obligations on online platforms under the EU Regulation. Those obligations have direct legal effect in all Member States of the EU and do not require any implementing measures in national law. In its recent publication, IFAC’s Professional Accountants in Business group discuss how accountants are leading and driving sustainability and digital transformation agendas. Some areas discussed in this article include; The accountancy profession’s role in driving higher-quality, decision-useful sustainability-related information The use of AI in transitioning businesses and the nature of work Strategies for nurturing future leaders For further technical information and updates please visit the Technical Hub on the Institute website.                                ~          Happy Christmas        ~

Welcome to this edition of Technical Roundup. In recent developments, IAASA has issued a letter to the CEOs of Recognised Accounting Bodies (RABs) setting out their expectations for the initial approval of existing statutory auditors to be Sustainability Assurance Service Providers (SASPs). In other news, the European Council has adopted a regulation creating the European Single Access Point (ESAP) which will give companies more visibility towards investors, and open up more financing opportunities.  Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) has launched a consultation on improved accounting requirements for financial instruments with characteristics of debt and equity. In the exposure draft, the IASB proposes; to clarify the underlying classification principles of IAS 32 to help companies distinguish between debt and equity; to require companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and to issue new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separate to the amounts attributable to other holders of equity instruments. The IASB has also released a webcast which gives an overview of the forthcoming standard for Subsidiaries without Public Accountability. The IASB has issued its November 2023 update which highlights preliminary decisions made by the board during their meetings on 13th to 15th November. In their November podcast, members of the IASB Board provided some insights from the recent meetings, including discussions on the progress and direction of the following projects; Business Combinations under Common Control; Post-implementation Review of IFRS 9—Impairment; and Provisions The IFRS Foundation has published a video which explains how IFRIC, the IFRS Interpretations Committee helps maintain and support consistent application of IFRS Accounting Standards; what happens when the Committee receives an application question; and how it works with the International Accounting Standards Board. EFRAG, the European Financial Reporting Advisory Group has issued its updated Endorsement Status Report which now reflects the European Commission’s endorsement of the amendments to IFRS 16 (Lease Liability in a Sale and Leaseback). The UK Endorsement Board has published its 2022/23 Annual Report. The UK Endorsement Board has also adopted Supplier Finance Arrangements: Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures, issued by the International Accounting Standards Board in May 2023. The International Accounting Standards Board’s (IASB) Research Forum hosted 85 participants at the IESEG Management School in Paris 2–4 November. Key highlights and findings from this event are now available to view online. In a recently uploaded video, IASB Member Ann Tarca explains proposals in the IFRS Accounting Taxonomy—Proposed Update 2 Common Practice for Financial Instruments, General Improvements and Technology Update currently out for consultation. The International Forum of Accounting Standard Setters met on 26th to 27th September to discuss matters of relevance to National Standard Setters across the globe. A report which discusses the key messages has been published. Olivier Boutellis-Taft, CEO of Accountancy Europe has announced that he will step down from his role at the end of 2024. Assurance and Auditing FRC The Financial Reporting Council has published its thematic review of audit sampling. The aim of the review is to identify common practice, concerns and good practice across 7 (Tier 1) firms. The publication shares findings to educate the wider market as audit sampling has been an area of repeated Audit Quality Review (AQR) findings for smaller firms. It will also be useful for Audit Committees in understanding the approach taken by audit teams.  Key observations include: Audit sampling is still prevalent. Most firms base their methodology on similar statistical models but with their own methodologies. This leads to substantial variation. Professional judgement is key. Sufficient training is vital. You can read the full report here. IAASA In the years 2020 to 2022 IAASA’s Audit Quality Unit completed 90 audit file inspections across firms. In November IAASA published a report outlining its key messages and recommendations for auditors relating to the area of audit evidence and procedures performed on the financial statement disclosures. The report highlights the key findings from the inspections, in particular: the number of PIE audit file inspections resulting in findings and recommendations in this area; the number of findings and recommendations relating to this area; and the common auditing standard requirements relating to the respective findings and recommendations raised in this area. IAASA’s YouTube channel includes a video that outlines the key messages and recommendations of the thematic review. Sustainability Climate Finance Week Ireland’s 6th annual Climate Finance Week took place from Monday 20th to Friday 24th November. This year’s theme was ‘Exploring a Sustainable and Just Economic Transition’ and the agenda featured the AIB Sustainability Conference; Biodiversity Finance Day; Innovation in Sustainable Funds and Asset Management and Skills & Expertise Day – Empowering Finance Climate Practitioners. IAASA has issued a letter to the CEOs of Recognised Accounting Bodies (RABs) setting out their expectations for the initial approval of existing statutory auditors to be Sustainability Assurance Service Providers ( SASPs). Accountancy Europe and EFRAG are jointly hosting a webinar on Supporting High Quality ESRS Implementation on Tuesday, 12 December. Accountancy Europe, in collaboration with Ecopreneur.eu and supported by the European Association of Co-Operative Banks has published “5 Reasons why Sustainability Matters for SMEs” which sets out some reasons why SMEs should not wait to start transitioning to more sustainable business models. The International Sustainability Standards Board has issued its November 2023 update and Podcast. The Financial Conduct Authority has confirmed that will introduce a package of measures designed to protect consumers by helping them to make more informed decisions when investing and to enhance the credibility of the sustainable investment market. Other News IAASA has launched a Stakeholder Perceptions Survey to gather insights into how its stakeholders perceive IAASA, it focuses on IAASA achievement of its mission of upholding quality corporate reporting and an accountable profession. The Charity Commission for Northern Ireland is writing to around 7,000 charities in preparation for the roll out of the new traffic light display on the register of charities. The new display, expected to go live later this year, will indicate if a charity has submitted their accounts and reports to the Commission on time or late, and by how many days they are overdue if not submitted at all. The European Council have adopted a regulation creating the European Single Access Point (ESAP) - a platform that will make information easier for investors to consult.  The European Single Access Point will give companies more visibility towards investors and open up more financing opportunities, especially for small companies in small capital markets. The Minister for Enterprise, Trade and Employment recently published the First Update Report on the White Paper on Enterprise Implementation Plan 2023-2024, which was published in May of this year. This report details the work undertaken to progress the 40 initiatives identified in the Implementation Plan and also provides an update on the 15 key target metrics identified in the White Paper. Please click here for the press release and here for the report. The Department of Enterprise, Trade and Employment is holding a free business event in Dublin which will focus on the opportunities and challenges presented by the green economy and digital transformation. The event is on Thursday 7 December. The Director of Financial Regulation, Policy and Risk at the Central Bank of Ireland spoke recently at a conference about the EU’s new Digital Operational Resilience Act or DORA. He delved into some of the detail including the challenges faced when trying to design and implement a framework to address digital operational resilience in the financial sector. He also referred to the work being done by the European Supervisory Authorities (the ESAs) on the implementation of the new framework. Please click here for full details. Private sector organisations with 50 employees or more will shortly be in scope of obligations under protected disclosures legislation to have internal reporting channels and procedures for the making of protected disclosures. Also, this week the Minister for Public Expenditure, NDP Delivery and Reform has issued new statutory guidance on the Protected Disclosures Act 2014. Read more in the Institute’s recent news item. Accountancy Europe discussed the attractiveness of the accounting profession, including how younger generations can be attracted into the profession in their recent article. A reminder again this week of the CRO deadlines for Christmas filing. The CRO writes that processing before the Christmas break of submissions received after the dates below cannot be guaranteed:      FE PHRAINN ONLINE SCHEME 12 DECEMBER 2023 A1 ORDINARY ONLINE SCHEME 7 DECEMBER 2023 CHANGE OF NAME 8 DECEMBER2023 REREGISTRATIONS 8 DECEMBER 2023 COMPANY NAME RESERVATIONS 15 DECEMBER 2023   For further technical information and updates please visit the Technical Hub on the Institute website.

Welcome to this edition of Technical Roundup. In recent developments, Global Reporting Initiative has announced the upcoming launch of the Sustainability Innovation Lab which is being established to enable companies to meet their evolving sustainability disclosure requirements and the Financial Reporting Council invites stakeholders to attend a webinar on Thursday, 23 November on its consultation to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations. Read more on these and other developments that may be of interest to members below. Financial Reporting EFRAG, the European Financial Reporting Advisory Group has published its draft comment letter in response to the International Accounting Standard Board’s  Exposure Draft- Annual Improvements Volume 11. The Exposure Draft proposes minor improvements and clarifications in relation to IFRS accounting standards. In its draft response, EFRAG agreed with the majority of the proposed changes, and disagreed with proposed amendments to IFRS 9 on derecognition of lease liabilities. EFRAG has released its October 2023 update which summarises public technical discussions and decisions taken in the month. EFRAG has updated its Endorsement Status Report, which now reflects the EC’s endorsement of IAS 12 International Tax Reforms – Pillar Two Model Rules. The Financial Reporting Council (FRC) has published its latest thematic review “IFRS 17 ‘Insurance Contracts’ Interim Disclosures in the First Year of Application”. IFRS 17 became effective on 1 January 2023 and represents a fundamental change in accounting for insurance contracts, introducing a comprehensive principles-based approach to replace the previous approach under IFRS 4. The report aims to provide examples of better practice for companies when considering the completeness of their upcoming and year-end disclosures. Whilst identifying some areas for improvement, the FRC noted that overall they were pleased with the quality of IFRS 17 disclosures. The IFRS Foundation has published Compilation of Agenda Decisions- Volume 9. This compilation includes three agenda decisions from the IFRS Interpretations Committee (IFRIC) covering; Premiums Receivable from an Intermediary (IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments); Homes and Home Loans Provided to Employees (IAS 19); and Guarantee over a Derivative Contract (IFRS 9). The Financial Reporting Council (FRC) has published a consultation paper on proposed changes to the Actuarial Standard Technical Memorandum 1 (AS TM1) (and its Annex: Exposure Draft of version 5.0 of TM1) to reflect the changes in the market conditions and outlook. Following on from King Charles Speech to Parliament on 7 November the FRC has highlighted that the UK Government’s plan for primary legislation to modernise the regulation of audit, corporate reporting and governance has not been prioritised for the next Parliamentary session. Assurance and Auditing On August 2, the International Auditing and Assurance Standards Board (IAASB) launched a public consultation on its landmark proposed global sustainability assurance standard, International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.  The results of this campaign have now been published. IAASA has published five factsheets providing an overview of its role and approach to the quality assurance review of the audits of public interest entities in Ireland.  The factsheets summarise the review process of the relevant firms and give a set of links to access other relevant information such as previous thematic reviews and IAAS’s annual reports. The FRC is holding a webinar on Thursday, 23 November on its consultation to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws and regulations. Sustainability EFRAG and CDP have announced that they will cooperate to maximise alignment of CDP’s global environmental disclosure platform with the EU’s environmental reporting standards. This alignment is intended to drive market uptake of the European Sustainability Reporting Standards. In doing this, CDP, supported by EFRAG, will offer webinars and detailed technical guidance materials to support companies reporting on ESRS data points through CDP. Global Reporting Initiative (GRI) has announced the launch of a Sustainability Innovation Lab. This is being established to enable companies to meet their evolving sustainability disclosure requirements and to encourage innovative thinking. ESG Governance – Questions Boards should ask to lead the Sustainability Transition: This document, issued by Accountancy Europe, ecoDa and ECIIA, aims to help boards with embedding sustainability – and specifically environmental, social and governance (ESG) factors, into company strategy and business models, and to ensure that proper governance supports this. Anti-money laundering and Sanctions The latest edition of the UK National Crime Agency SARs Reporters Booklet for November 2023 whereby it shares perspectives on the SARs regime, is now available on their website. The European Commission has this month published a full list of PEPs for EU countries. The list for Ireland bear close resemblance to the list in the guidelines that were issued by the Irish Dept. Of Justice in January of this year. The European Parliament has recently issued a report on EU sanctions implementation and monitoring. It includes recommendations to reinforce the EU’s capacities to implement and monitor sanctions. The think tank writes that the EU should agree on a joint definition of what constitutes a competent national authority, ensure adequate guidance for the EU’s economic operators, enhance the involvement of implementation and enforcement expertise in the planning phase of sanctions regimes, and design a new horizontal sanctions regime to counter circumvention. You can access the think tank summary and the report here. Insolvency The first in a series to introduce members of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) Insolvency Committee was recently published. The first edition, available here, features Cormac Mohan. Cormac is the managing partner at Fitzwilliam Corporate Insolvency, a Dublin based corporate restructuring practice. He is an experienced Insolvency Practitioner; Past President of CPA Ireland and is a member of the CCAB-I Insolvency Committee since 2016. Other News The European Securities & Markets Authority (ESMA) is inviting comments re Consultation on the review of Tier 1 CCP Fees regarding all matters in this paper and in particular on the specific questions summarised in Annex 1. ESMA will consider all comments received by 10 November 2023. ESMA has also published the latest edition of its Spotlight on Markets Newsletter for October 2023. The FRC has published the 2023 suite of FRC Taxonomies.  The 2024 suite incorporates changes to all of the FRC’s Taxonomies - UK IFRS, FRS 101, FRS 102, UKSEF, and Charities – available in English or Welsh. The FRC has published its Review of Corporate Governance Reporting. This report showcases examples of high-quality and insightful corporate governance reporting by companies. In its report, the FRC noted that they were encouraged by the fact that companies were more transparent in reporting departures from the Corporate Governance Code, but were also disappointed by the many examples boilerplate reporting which fails to meet stakeholder expectations. The Charities Regulator's latest newsletter has issued which includes important dates for your diary and the impact of volunteers are themes throughout this month’s edition.   The Financial Conduct Authority have issued Discussion Paper 23/4: Regulating cryptoassets Phase 1: Stablecoins.  The DP will help develop their regime for flat-backed stablecoins including when used as a means of payment. The European Commission have published a Draft Act on Supervision of crypto-assets – criteria, procedures and fees.  This draft act is open for feedback until 6 December. The Irish Competition and Consumer Protection Commission (CCPC) has recently published its Strategy Statement 2024-2026. The press release states that the statement sets out four strategic goals which span the CCPC’s broad remit and work. It will work to use its tools, including new powers, to increase enforcement and compliance outcomes, empower consumers to make informed choices, be the leading voice in promoting open and competitive markets and representing the interests of consumers and evolve and grow in size and capability. You can read the strategy statement here. The Governor of the Central Bank recently addressed the Irish League of Credit Unions conference. He spoke on a range of matters including the significant opportunity provided by the Credit Union Amendment Bill and of the significant opportunities which exist in relation to credit union lending. You can read further details here .Also this week the Central Bank has published Individual Accountability Framework Standards and Guidance .The press release on its website states that  Following a three month consultation process, the Central Bank has published a Feedback Statement and issued draft Regulations and Guidance to firms on the Individual Accountability Framework. The Corporate Enforcement Authority (CEA) has opened a subscription to its newsletter mailing list. It aims to send a CEA newsletter every quarter to provide subscribers with updates on CEA news and company law matters. You can sign up to the newsletter by going to the CEA home page. A reminder to readers that the CRO has published its Christmas filing deadlines and clarifies that processing before the Christmas break of submissions received after the dates below cannot be guaranteed:      FE PHRAINN ONLINE SCHEME 12 DECEMBER 2023 A1 ORDINARY ONLINE SCHEME 7 DECEMBER 2023 CHANGE OF NAME 8 DECEMBER2023 REREGISTRATIONS 8 DECEMBER 2023 COMPANY NAME RESERVATIONS 15 DECEMBER 2023   For further technical information and updates please visit the Technical Hub on the Institute website.

Welcome to this edition of Technical Roundup. In recent developments, a new traffic light display, which will indicate if a charity has submitted their accounts and reports to the Charity Commission for Northern Ireland on time, is being rolled out on the Register of Charities; the European Securities & Markets Authority has published an article on the evolution of the European share market structure from 2019 to 2022, following the implementation of the markets in financial instruments directive (MiFID II). Read more on these and other developments that may be of interest to members below. Financial Reporting The Institute has issued its response to the International Accounting Standards Board’s (IASB) request for information on the Post-Implementation Review of IFRS 15 Revenue from Contracts with Customers. Whilst supporting the strong framework provided by the five-step framework in IFRS 15, the Institute made some recommendations and comments in its submission, including a request for further guidance in certain areas where the application of the standard is more challenging. The Institute has also issued its response to the draft amendments to the LLP SORP. Some of the updates being proposed to the SORP include. Updates for Climate-related financial disclosures Guidance relating to amounts payable to former members Guidance on sharing of group profits Guidance on automatic division of profits to members who do not provide any substantive services to the LLP An effective date of periods commencing on or after 1 January 2024 is proposed for the changes EFRAG and the UK Endorsement Board have also issued their responses to the IASB’s request for views on the Post-Implementation Review of IFRS 15. The Financial Reporting Council (FRC) has published a report looking at how companies can improve their corporate reporting by taking a more focused, strategic approach to assessing materiality. The European Financial Reporting Advisory Group (EFRAG) are holding a online roundtables for different interest groups at various dates in November and December entitled “Statement of Cash Flows – Is there a need for change?” In a thought provoking article, Oliver Boutellis-Taft, CEO of Accountancy Europe, discusses the methods used to categorise entities for regulatory purposes across Europe. This is largely performed using quantitative metrics such as turnover. In the article, the potential benefits of the use of more metrics which are based on impacts and risks are discussed. Accountancy Europe has issued its October 2023 Newsletter. The IFRS Foundation has issued its National Standard-setters newsletter. This discusses the recent World Standard Setters Conference which was held in London on 25th and 26th September. The IASB has issued its October 2023 update. this summarises the recent activities and decisions made during their recent meetings. The IASB has also released its October 2023 podcast. The IFRS Foundation has also released its October 2023 monthly news summary. IFRIC, the IFRS Interpretations Committee has issued its September 2023 update. This summarises the decisions reached by the Committee in its recent meetings. Assurance and Auditing The Financial Reporting Council (FRC) has launched a consultation to strengthen auditor requirements to detect and report material misstatements from non-compliance with laws, ISA(UK)250A and ISA (UK)250 B, and regulations and to clarify when auditors should report such breaches, and other significant matters, to the relevant regulators. The aim is to enhance the useability and informativeness of the audit. They are consulting on strengthening both ISAs and the consultation closes on 12 January 2024. The FRC are planning a webinar and roundtables in  November for interested parties. Chartered Accountants Ireland has responded to the FRC’s consultation on proposed amendments to the Ethical Standard for Auditors. We welcome the moves to align with the IESBA standard and we are supportive of changes which add clarity and therefore make compliance easier, but we have concerns that the proposed effective date of 15 December 2024 might not allow firms sufficient time to make the necessary changes to their global systems. Sustainability Proposed ISSA 5000: the application of materiality by the entity and the assurance practitioner. As part of the IAASB's intensive outreach campaign across the globe, there were requests from a range of stakeholders to provide additional information on materiality matters to better help them navigate the recently proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. This comprehensive set of Frequently Asked Questions was developed to respond to these requests. The compilation addresses a variety of questions, including how the concept of materiality applies to sustainability reporting and assurance; the definition of double materiality; and how an assurance practitioner considers an organization’s “materiality process” during a sustainability assurance engagement, among other questions and answers. Following the passing of the scrutiny period for the European Sustainability Reporting Standards (ESRS), the 12 standards have now been adopted and integrated in the European legal framework. The European Financial Reporting Advisory Group (EFRAG) have welcomed this significant milestone and noted its dedication to providing support for the successful implementation of the suite of standards. This includes: Their launch of a Q&A platform to encourage stakeholder dialogue The development of further standards for SMEs The ESRS did not go unchallenged through the period of scrutiny and on 18th October, a resolution calling for a new delegated act to be submitted (containing significant reductions on the level of requirements placed on companies by the CSRD and ESRS) was defeated in the European Parliament by a margin of 359 against to 261 in favour. Whilst the challenge was defeated, it is notable that the margin in favour of a revision to the CSRD was significant. Accountancy Europe together with ECIAA and ecoDa has released a publication entitled “ESG Governance: questions boards should ask to lead the sustainability transition”. This publication aims to help boards in embedding sustainability factors into company strategy and business models and to ensure proper governance of this. The Brazilian Ministry of Finance and the Comissão de Valores Mobiliários (CVM) have announced that the International Sustainability Standards Board’s (ISSB) IFRS Sustainability Disclosure Standards will be incorporated into the Brazilian regulatory framework, setting out a roadmap to move from voluntary use starting in 2024 to mandatory use on 1 January 2026. The FRC and the British Accounting and Finance Association's (BAFA) hosted a joint event: Embedding Sustainability in Audit and Accounting Education—A forum for Professional Accountancy Bodies, Academics, and Training Providers on 1 November at Manchester University. The International Sustainability Standards Board has issued its ISSB Update, and the latest episode of the ISSB podcast. Insolvency For readers who did not secure a place on the Corporate Enforcement Authority’s (CEA) inaugural conference of 19 October 2023 ,the CEA has now made available the content of most of the papers delivered at the conference and readers can access the papers on the CEA’s website under the “Events “ button. A notable judgement has been handed down in a recent examinership case. In the case involving Mac Interiors Limited, Mr Justice Michael Quinn ruled that the court had no jurisdiction to confirm the scheme of arrangement proposed by the Examiner. Read the article on our website here. Economic crime/Anti-money laundering Readers should note that the Economic Crime and Corporate Transparency Act received royal assent on 26 October 2023. Please click here to access the legislation and here for a press release from UK government on the legislation. It includes new enhanced powers for UK Companies House and a new much debated failure to prevent crime offence for large organisations. More detailed analysis of the legislation and its applicability to our readers will follow in future news items. The Institute’s Professional Standards Dept. (PSD) has recently issued its AML supervision report 22/23. The report outlines PSD’s risk methodology identifying various risk factors to which accountancy firms may be exposed, including but not limited to higher risk services; higher risk clients; exposure to high-risk jurisdictions; complex firm structures and poor regulatory history. It also deals with risk profile of TCSPs (ROI - med/high risk of money laundering, med/low risk of terrorist financing and UK high risk of money laundering). Emerging risks include increase in insolvencies, risks associated with bounce back loans, the ongoing crisis in Ukraine and cryptoassets. Finally, the most common findings related to breach were no or inadequate documented policies & procedures, inadequate documentation of CDD, no or inadequate CDD procedures, no ongoing CDD monitoring, no or inadequate client risk assessment/record missing, no/inadequate periodic review of compliance with AML regs, no or inadequate training, no or inadequate firm-wide risk assessment. In the latest SARs in Action magazine, a wide range of money muling issues are discussed. The National Crime Agency 's National Economic Crime Centre looks at how money muling networks may form, there is a look at how money muling is addressed within the banking sector by NatWest Group, and a discussion on educating young people on the threat of money muling by UK Finance.  The latest Financial Action Task Force (FATF) 'High-Risk Jurisdictions subject to a Call for Action' (black list ) and 'Jurisdictions under Increased Monitoring' (grey list ) documents issued by the FATF on the 27 of October 2023 are now available on FATF’s website and you can access the information here. Other News The European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have published a Consultation Paper on two draft Joint Guidelines covering suitability assessment of members of the management body, and suitability of shareholders and members with qualifying holdings of issuers of asset referenced tokens (ARTs) and of crypto-asset service provider (CASPs).  A new traffic light display, which will indicate if a charity has submitted their accounts and reports to the Charity Commission for Northern Ireland on time, is being rolled out on the register of charities. The Central Bank of Ireland are hosting a Financial System Conference 2023 – Achieving good outcomes in an uncertain world – which will take place on 8 November 2023 at the Aviva Stadium in Dublin.  This event will bring together diverse perspectives from industry leaders, consumer representatives and policymakers, from Ireland and across the EU, to discuss and debate key issues for the financial system.  UKFIU's magazine SARs in Action: Special edition on Money Mules The Financial Reporting Council (FRC) welcomes the appointment of Alan Vallance as the Institute of Chartered Accountants in England and Wales’ (ICAEW) Chief Executive Officer, replacing Michael Izza who is due to retire in spring 2024. ESMA has published an article on the evolution of the European share market structure from 2019 to 2022, following the implementation of the markets in financial instruments directive (MiFID II). Specific focus is given to the impact of the UK’s withdrawal from the EU, given its pivotal role in equity markets. In an interesting article issued by IFAC, Pascal Bornet discusses the opportunities that artificial intelligence and intelligent automation provide to accountants. The Screening of Third Country Transactions Bill 2022 was signed into law by the President on 31st October 2023. The finalised text of the legislation is not yet on the Irish statute book website and it is anticipated that it will not become operational until Q2 2024. The legislation when operational will require that certain investments in critical Irish industries that may present risks to Ireland’s security or public order must be reviewed by the Minister for Enterprise Trade and Employment. The legislation will apply to transactions (or an accumulation of transactions in a twelve month period) equal to or greater than €2,000,000. Third country is  any non-EU/EEA country other than Switzerland. Therefore the UK and the US fall within the definition of third country. The types of transaction to which the legislation will apply are set out in Article 4(1) (a)-(e) of the 2019 EU regulation establishing a framework for the screening of foreign direct investments into the Union such as critical infrastructure including energy transport, water and critical technologies including aerospace, defence, energy storage. The trigger for a transaction to fall within the scope of the legislation is a change in shares or voting rights from 25% or less to more than 25% or from 50% or less to more than 50%. The Minister can review transactions post completion in certain circumstances and can call in certain transactions even if non notifiable where there are reasonable grounds for believing that the transaction would be manifestly contrary to Irish security or public order. Following recent changes in UK legislation, cryptoassets promotions targeting UK customers now fall under the remit of the Financial Conduct Authority (FCA). In light of this, the FCA has introduced rules designed to give people a better understanding of what they are investing in. They have also issued guidance to support crypto firms in complying with the new marketing rules. The European Commission has adopted the proposal to increase the company size thresholds set out in the Accounting Directive. This follows a consultation period in recent months which proposed a 25% increase in the size limits for turnover and balance sheet total to reflect the levels of inflation since the limits were introduced. The Institute, under the auspices of CCAB-I issued a response to this in October and agreed with the proposed increase. The amendments will not come into force until they are published in the Official Journal. Once in force, the changes would allow member states, including Ireland, to increase their company size thresholds for turnover and balance sheet total locally. The FRC has released two reports on the actuarial profession in the UK. One report highlights gender imbalance in the profession, its second report looks at the use of AI and machine learning in UK actuarial work. The CRO has published its Christmas filing deadlines and clarifies that processing before the Christmas break of submissions received after the dates below cannot be guaranteed:            FE PHRAINN ONLINE SCHEME 12 DECEMBER 2023 A1 ORDINARY ONLINE SCHEME 7 DECEMBER 2023 CHANGE OF NAME 8 DECEMBER2023 REREGISTRATIONS 8 DECEMBER 2023 COMPANY NAME RESERVATIONS 15 DECEMBER 2023 For further technical information and updates please visit the Technical Hub on the Institute website.  

Welcome to this edition of Technical Roundup. In recent developments, the European Commission has welcomed the adoption of two final pillars of its Fit for 55 legislative package for delivering the EU's 2030 climate targets; the Pensions Authority has published its guidance for trustees on the own-risk assessment (ORA), as required under section 64AL of the Pensions Act. 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 launched a survey which seeks feedback on the IASB’s tentative decisions on its project Business Combinations - Disclosure, Goodwill and Impairment. The objective of this survey is to help EFRAG’s project team to better understand whether the proposed disclosure requirements in the tentative decisions can be applied in practice and whether they meet the intended objectives at a reasonable cost. EFRAG has announced that the report Towards Sustainable Businesses: Good Practices in Business Model, Risks and Opportunities Reporting in the EU, which was developed by the European Lab Project Task Force on the reporting of non-financial risks and opportunities, was selected for this year’s session of ISAR Honours. The report looks at the drivers of current reporting practices and the application of technological solutions, while also looking at how the reporting of sustainability risks and opportunities and their linkage to the business model can be improved. In its Annual Review of Corporate Reporting 2022/2023, the FRC has reported findings from its monitoring activities along with its expectations for the coming year. Also included in the annual review were the most frequently raised issues identified by the FRC which includes impairment of assets, judgements & estimates, cash flow statements amongst other new and recurring themes. The report provides a useful insight for preparers and auditors of financial statements, investors and other users of corporate reports. The FRC are also holding a webinar on 1 November to discuss the key findings. ESMA, the European Securities and Markets Authority has published its September 2023 “Spotlights on Markets” newsletter. In his “Investor Perspectives” article, International Accounting Standard Board (IASB) member, Nick Anderson discusses transactions that are not reflected in cash flow statements and also the new disclosure requirements issued by the IASB in May 2023 (effective for periods commencing on or after 1 January 2024). The IFRS Interpretations Committee have released their September 2023 podcast which discusses the decisions reached at its meeting in September. This includes details of a new request made in relation to business combinations as well as the consideration of feedback received on three tentative agenda decisions. The UK Endorsement Board (UKEB) has published a survey on Accounting for Intangibles. This seeks views on how the accounting for, and reporting of, intangible assets could be improved.   Assurance and Auditing The FRC has published revised ISA (UK) 505 External Confirmations (Revised October 2023).  The revisions to the standard reflect recent enforcement findings as well as ensuring that modern approaches to obtaining external confirmations are considered, with additional material in respect of digital means of confirmation, enhanced requirements in relation to investigating exceptions and a prohibition on the use of negative confirmations. The revised standard is effective for audits of financial statements for periods commencing on or after 15 December 2024. IAASA has published its inspection insight series 3  Communication with Those Charged with Governance (TCWG) and IAASA’s YouTube channel also includes a video that shares questions asked by IAASA’s audit inspectors during 2022 and 2023 in the area of communication with TCWG. IAASA has published its annual Observations paper highlighting matters that management, Audit Committees and auditors should consider when preparing, approving and auditing financial statements for 2023 year end dates. Sustainability The European Parliament have voted to adopt the European Sustainability Reporting Standards (ESRS) which will pave the way for the standards to become effective, depending on a company size and nature, on a phased basis financial periods beginning on or after 1 January 2024. Members of the parliament rejected a resolution put forward on 18 October that would have weakened the European Sustainability Reporting Standards, clearing the way for final adoption of rules for companies to report on sustainability-related impacts, opportunities and risks. The ESRS are the sustainability reporting standards that companies subject to the CSRD will be required to apply. The ESRS will comprise 12 standards covering the following areas - 2 Cross-cutting standards which set out the general principles and disclosure requirements standards, and 10 Topical standards which incorporate five Environment standards, four Social standards and one Governance standard. The UKEB, the Australian Accounting Standards Board (AASB), Canadian Accounting Standards Board (AcSB), Malaysian Accounting Standards Board (MASB), and the New Zealand External Reporting Board (XRB), has published a joint letter to the International Sustainability Standards Board (ISSB) highlighting their common concerns regarding its recent Agenda Consultation. The 3 areas of concern noted were: Connectivity with accounting standards Strategic roadmap Implementation priority The European Commission has welcomed the adoption of two final pillars of its ‘Fit for 55' legislative package for delivering the EU's 2030 climate targets. Ahead of the crucial COP28 UN Climate Conference, and next year's European elections, this complete package of legislation shows that Europe is delivering on its promises made to citizens and international partners to lead the way on climate action and shape the green transition for the benefit of citizens and industries. The Financial Stability Board (FSB) has published its annual progress report on climate-related disclosures.  The report has been delivered to G20 Finance Ministers and Central Bank Governors for their 11-12 October 2023 meeting. The Financial Conduct Authority (FCA) has welcomed the publication of the Transition Plan Taskforce (TPT) Disclosure Framework.  As we transition to a low emissions economy, financial markets will increasingly want better information on how companies plan to adapt their business models, their operations and their products and services.   Insolvency The Institute recently hosted a webinar on Corporate Enforcement Authority – Insolvency. This conversation is with Cathy Shivnan, Director of Insolvency Supervision, at the Corporate Enforcement Authority (CEA) and gives insights into the CEA’s insolvency agenda. The session also included some background on Cathy’s career and her journey from Revenue to CEA along with the evolution of the CEA from the ODCE. The recording can be accessed here. Minister Dara Calleary, TD has signed the Companies Act 2014 (Section 682) Regulations 2023. The Regulations, which came into effect on 1 October 2023, prescribe a revised Report for use by liquidators when making reports to the Corporate Enforcement Authority under section 682 of the Companies Act 2014. The revised section 682 report should be used for all submissions made from 1 October 2023. The Rules of the Superior Courts (Order 74) 2023 also commenced on 1st October 2023. Sanctions -recent UK case A notable decision of the UK Court of Appeal Mints & Ors v PJSC National Bank Trust & Anor [2023] EWCA Civ 1132 was handed down 6 October 2023. The case concerns the UK Russian sanctions’ regime. One of the issues discussed but which was not part of the binding decision was the control issue. The judge said that the wording of the relevant UK regulation does not distinguish between different forms of “non-ownership control” or “calling the shots”. He concluded that control can be established under the regulation by whatever means including political and corporate office. You can read further details on the case and a subsequent statement issued by the UK Foreign, Commonwealth and Development Office in the news item here.   Anti money-laundering The European Fund and Asset Management Association has recently issued views on the European Commission’s anti-money laundering (AML) package proposal including that the threshold for identifying beneficial owners should be kept at 25% across all industries in which customers operate and that ‘control exercised via other means’ criteria needs to be clear, workable and enforceable for practitioners. You can read their press release here. Other News The European Securities and Markets Authority (ESMA) has launched a public consultation on the revision of the Delegated Regulation regarding fees charged to Tier 1 third country central counterparties (CCPs) under the European Market Infrastructure Regulation (EMIR). ESMA has published a supervisory briefing on circuit breakers, which provides a comprehensive overview of supervisory expectations regarding the calibration of circuit breakers implemented by trading venues (TVs).  The International Auditing and Assurance Standards Board (IAASB) has released amendments aimed at bolstering transparency and providing auditors with a clear mechanism to action changes to the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics for Professional Accountants (including International Independence Standards). The IAASB amended International Standard on Auditing 700 (Revised), Forming an Opinion and Reporting on Financial Statements and ISA 260 (Revised), Communication with Those Charged with Governance. The European Commission issued a communication  outlining its 2024 work programme, along with the accompanying annexes which offers a comprehensive overview of the Commission’s plans including regulation, implementation and enforcement of EU law and delivery of its six headline ambitions. The Central Bank of Ireland issued a public statement on 21 August 2023 in relation to an archiving error that affected the retention period of some information on borrowers’ credit reports held on the Central Credit Register (CCR). The Central Bank provided an update on the matter on 13 October 2023. The Pensions Authority has published its guidance for trustees on the own-risk assessment (ORA), as required under section 64AL of the Pensions Act.  Except for one-member arrangements established before 22 April 2021, the latest date by which a pension scheme's first ORA can be completed is 22 April 2024. This guidance is available on the own-risk assessment (ORA) page of the Authority’s website. For further technical information and updates please visit the Technical Hub on the Institute website.

Welcome to this edition of Technical Roundup. In recent developments, the European Commission has consulted on increasing the company size  threshold limits and IAASA has published the latest edition of its Standards Newsletter as well as its annual Observations Paper. Read more on these and other developments that may be of interest to members below. Financial Reporting Institute has responded to the International Accounting Standards Board’s (IASB) request for information relating to IFRS 9 Financial Instruments impairment requirements. Broadly speaking, the Institute believe that the impairment model in IFRS 9 is working as intended, but made some recommendations to the IASB in its response. EFRAG have also submitted a response to the same consultation. The Financial Reporting Council is welcoming applications for its Stakeholder Insight Group (SIG), a cross-stakeholder panel that represents preparers, investors and other key parts of our stakeholder universe including reporting framework owners and civil society groups.  The Financial Reporting Council have released FRED 84 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. This proposes to introduce new disclosure requirements to provide users of financial statements with additional information about an entity’s use of supplier finance arrangements and the effect of such arrangements on the entity’s financial position and cash flows. The Financial Reporting Council has issued a project update relating to the ongoing periodic review of FRS 102. In its update, the FRC provided details of the feedback received on areas such as Revenue Recognition and Leasing. It also noted that it expects to issue the final amendments in the first half of 2024, with the changes becoming effective for periods commencing on or after 1 January 2026. The IFRS Interpretations Committee have issued their September 2023 update which summarises the decisions reached in its public meetings. The International Accounting Standards Board (IASB) have released the September 2023 IFRS for SMEs Accounting Standard Update a joint FASB-IASB Update and a September podcast. The IFRS Foundation have also issued their September news summary. The IASB has announced that it has decided to explore targeted actions to improve the reporting of climate-related and other uncertainties in financial statements. This may result in the development of educational materials, illustrative examples and targeted amendments to the IFRS Accounting Standards to improve the application of existing requirements. The IASB has issued amendments to the IFRS for SMEs Accounting Standard which provides temporary relief from accounting for deferred taxes arising from the implementation of the Pillar Two model rules. This follows similar amendments made to IAS 12 and FRS 102. In his opening address at the World Standard-setters Conference 2023, Andreas Barckow celebrated 50 years since the formation of the International Accounting Standards Committee (IASC), the predecessor to the IASB. He acknowledged the benefits gained from the establishment of global financial reporting standards and the efficiency and transparency they bring to companies and investors. He also discussed some of the upcoming standards being worked on by the IASB as well as the important role that the IFRS Interpretations Committee plays. During the conference, a video marking 50 years of accounting standard-setting was released by the IASB. EFRAG are seeking comments on its draft endorsement advice on the lack of exchangeability amendments to IAS 21. Comments on the draft endorsement advice letter are requested by 7 December 2023. Separately, EFRAG have completed its due process regarding Supplier Finance Arrangements (IAS 7 and IFRS 7) amendments and have submitted its Endorsement Advice Letter to the EC. EFRAG has issued its September 2023 update. This informs stakeholders about due process publications, public technical decisions and decisions taken during the month. Audit IAASA has published the latest edition of its Standards Newsletter as well as its annual Observations Paper. Insolvency - recently ruled case The case of Gerard Murphy liquidator of Diamond Rock Developments Limited (in liquidation) and Joseph Leddin recently ruled on by the Irish Court of Appeal, reminds readers of the importance of   registration within the statutory time period, of a charge created by a company. Practitioners whose clients lend money secured by a charge on company assets must ensure, so that the charge is enforceable against a liquidator and any creditor of a company, that it is correctly registered in the companies’ registration office (CRO). The required particulars of the charge must be registered with the Registrar of Companies not later than 21 days after the charge’s creation. The case also noted that the statutory provisions concerning registration empower a court to grant an extension of time where it is ‘just and equitable ‘to do so. However, in this case the jurisdiction was not invoked before the company went into liquidation as the judge said presumably because an extension can only be granted where it would not prejudice the position of creditors or shareholders of the company. The final point to make on this case which might be of interest to readers is that the attempted creation of a second charge by the company in favour of the appellant charge holder was unsuccessful in its attempt to regularise the position in the CRO. That second charge was stated by the Court of Appeal to be void as against the liquidator as an “unfair preference” as that term is defined in company legislation. Sustainability Accountancy Europe has published ‘5-step starting guide to a sustainable transition for SMEs’. This discusses the initial steps an SME can take in the early days of their transition towards a more sustainable business. EFRAG is have announced that they are recommencing the drafting of sector specific ESRS standards and are inviting external participants to interact with them as they commence the drafting of this. The sectors where they are seeking participants are as follows: Agriculture, Farming and Fishing Food and Beverage Services Mining, Coal and Quarrying Motor Vehicles Oil and Gas Power Production and Energy Utilities Road Transport Textiles, Accessories, Footwear and Jewellery   The International Sustainability Standards Board has congratulated the Task Force on Nature-related Financial Disclosures (TNFD) on the publication of its recommendations during New York Climate Week 2023.  The TNFD recommendations can help companies communicate nature-related risks and opportunities to investors and other stakeholders. The ISSB September 2023 Update has been issued.  This update highlights preliminary decisions of the International Sustainability Standards Board (ISSB). Projects affected by these decisions can be found on the work plan. The ISSB have also released their September 2023 podcast. The UK Endorsement Board has published two reports as a result of its Climate-related Matters Research Project; Climate-Related Matters: Summary of Connectivity Research A Study in Connectivity: Analysis of 2022 UK Company Annual Reports Insolvency Minister Dara Calleary, TD has signed the Companies Act 2014 (Section 682) Regulations 2023. The Regulations, which came into effect on 1 October 2023, prescribe a revised Report for use by liquidators when making reports to the Corporate Enforcement Authority under section 682 of the Companies Act 2014. The revised section 682 report should be used for all submissions made from 1 October 2023. The Rules of the Superior Courts (Order 74) 2023 also commenced on 1st October 2023. For more information please see recent news article. European Commission consults on increase to company size thresholds The company size thresholds which are essential in determining the type of financial statements that a company must prepare, whether or not they are required to have an audit and whether they must prepare consolidated accounts, are largely determined by the limits set out in the EU Accounting Directive. Ireland currently has company size limits which are the maximum allowed under that Directive. The European Commission has released a draft act which proposes to increase the current size limits by 25%, to take account of the impact of inflation since these rates were first introduced. If approved, this amendment would then allow Ireland to increase their limits accordingly (subject to government approval and legislation). Anti Money -laundering and sanctions Europol via EMPACT (European Multidisciplinary Platform Against Criminal Threats) has this week issued a factsheet with statistics and other information on areas such as migrant smuggling, human trafficking ,environmental crime and excise fraud .You can access a copy of the EMPACT 2022 factsheet here. Other News The three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have issued their Autumn 2023 Joint Committee Report on risks and vulnerabilities in the EU financial system. The Report underlines the continued high economic uncertainty. The ESAs warn national supervisors of the financial stability risks stemming from the heightened uncertainty and call for vigilance from all financial market participants. The Department for Communities has announced the appointment of Terence McGonigal as a Commissioner to the Board of the Charity Commission for Northern Ireland, from 1 September 2023 to 31 August 2028. A new traffic light display, which will indicate if a charity has submitted their accounts and reports to the Charity Commission for Northern Ireland on time, is being rolled out on the register of charities. The public register lists all the charities registered in Northern Ireland as well as providing information such as what they do, where they work and their annual accounts for applicable years. In July 2023, the Pensions Authority surveyed the trustees of 150 defined contribution (DC) schemes and 150 defined benefit (DB) schemes to assess trustee awareness and management of risks facing pension schemes. The Pensions Authority has this week published the results of the survey and you can read about the questions posed and conclusions of the Authority here. The European Banking Authority (EBA) recently published its 2024 work programme. It lays out 5 core areas of strategic priorities for 2024-2026. It has adapted its strategic priorities for its work programme for 2024 which includes developing an oversight and supervisory capacity for DORA (Digital Operational Resilience Act) and MiCAR (the EU Markets in Crypto-assets Regulation) and preparing the transition to the new AML/CFT framework. On the former, the EBA says will continue to deliver the policy mandates included in MiCAR and DORA, thereby contributing to the digital risk management dimension of the Single Rulebook and to a consistent framework for the regulation and supervision of crypto-asset activities. On the latter the EBA says it will work closely with competent authorities and the European Commission to facilitate the transition to the EU’s new legal and institutional AML/CFT framework. As part of this, the EBA will prepare the transfer of data, knowledge and powers to AMLA; support national competent authorities in their preparatory work; provide technical advice to the European Commission as necessary; and help to put in place the gateways necessary to make the effective cooperation between prudential and AML/CFT supervisors and regulators possible going forward. Minister of State for Trade Promotion, Digital and Company Regulation, this week urged early action on filing of company annual returns with the Companies Registration Office (CRO) in the context of the late November peak filing period. Please click here for the press release   where he reminds of the particular importance this year with the implementation of the requirement for PPS numbers to be provided for company directors. The Government has recently published its legislative programme for Autumn Session 2023. Read the press release here and the contents of the programme here. Items which might be of interest to members include: The Digital Services Bill 2023 is priority for publication and the General Scheme of the Bill  was published by DETE in March 2023. Pre legislative scrutiny has been completed since the summer update and the report on that can be accessed here . The Bill is designed to implement the EU’s Digital Services Act, and it aims to establish a new Media Commission which will be designated digital services coordinator and responsible for regulating online intermediaries. The Charities (Amendment) Bill is listed in the priority publications and is listed as heads in preparation. The General scheme of the Charities (Amendment ) Bill was published in April 2022 . You can read the press release from the Minister at the Dept of Rural and Community Development and download the general scheme of the Bill here. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill is listed as heads in preparation. Since the summer legislative programme a public consultation has been held by the Dept. of Enterprise Trade and Employment on the four areas of proposed amendment to company law proposed by the Bill namely corporate governance ,company law enforcement and supervision, administration, and insolvency including the regulation of receivers. Read here the response to the consultation of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) of which Chartered Accountants Ireland is a member. Two other bills which may be of interest are the Co-operative Societies Bill on which drafting is on-going and the Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023 on which heads in preparation is ongoing. For further technical information and updates please visit the Technical Hub on the Institute website.

Welcome to this edition of Technical Roundup. In recent developments, Chartered Accountants Ireland are hosting a webinar Corporate Enforcement Authority – Insolvency on 5 October at 10am. This conversation is with Cathy Shivnan Director of Insolvency Supervision at the Corporate Enforcement Authority (CEA) and gives insights into the CEA’s insolvency agenda; the EU Commission has issued a guidance note for EU operators on implementing enhanced due diligence to shield against Russian sanctions circumvention. Read more on these and other developments that may be of interest to members below. Financial Reporting The UK Endorsement Board (UKEB) has issued a draft comment letter for public consultation in response to the IASB’s Request for Information on its Post-implementation Review (PIR) of IFRS15 Revenue from Contracts with Customers. The International Accounting Standards Board has published Exposure Draft Annual Improvements to IFRS Accounting Standards—Volume 11.  The document is available to download from the Open for comment section and from the individual project pages on the work plan. The European Single Markets Authority (ESMA) has published the annual update of its Reporting Manual on the European Single Electronic Format (ESEF). This includes technical improvements and additional clarifications. The European Financial Reporting Advisory Group (EFRAG) have issued their August update which summarises public technical discussions held and decisions taken during the month. In order for EFRAG to provide input to the initial phases of the IASB’s research project on the Statement of Cash Flows and Related Matters, EFRAG have issued an open call for tenders to assist in identifying uses and issues with the statement of cash flows. The IFRS Foundation has issued its August 2023 monthly news summary. This includes details of recent amendments to IAS 21, details of current consultations and requests for information and other matters of interest. Insolvency Chartered Accountants Ireland are hosting a webinar Corporate Enforcement Authority – Insolvency on 5 October at 10am. This conversation is with Cathy Shivnan, Director of Insolvency Supervision, at the Corporate Enforcement Authority (CEA) and gives insights into the CEA’s insolvency agenda. The session will include some background on Cathy’s career and her journey from Revenue to CEA along with the evolution of the CEA from the ODCE. This webinar is a free event and open to all. Earlier this week, the UK government published its response to the consultation on ‘The Future of Insolvency Regulation’, which ran between 21 December 2021 and 25 March 2022. The consultation sought views on a comprehensive package of reforms to the insolvency practitioner regulatory framework. This response includes a significant package of reforms which addresses the current weaknesses, closes a loophole in the framework, and provides opportunities for further reform. It will strengthen insolvency regulation and increase public confidence in the framework. Sustainability Accountancy Europe, in collaboration with the European Sustainable Business Federation, have issued a paper ‘5-step starting guide to a sustainable transition for SMEs’.  The paper presents 5 first steps an SME can take to begin their sustainable journey. It is vital to initiate the process, even with small steps, and gradually start preparing the business for what lies ahead. EFRAG and the Global Reporting Initiative (GRI) have issued a joint statement confirming that they have achieved a high level of interoperability between their respective standards in relation to impact reporting. EFRAG has published its final comment letters on the ISSB consultation on Agenda Priorities and SASB methodology. Sanctions The UK Financial Conduct Authority recently issued a publication on firms’ response to increased sanctions due to Russia’s invasion of Ukraine. In the publication the FCA set out key findings from its assessments of sanctions systems and controls and includes examples of good practice and areas for improvement. While the publication is in respect of financial services firms, the findings in relation to good practices and areas that need improvement may be of interest in any efforts to making improvements to the approach to identifying and assessing the sanctions risks that firms are exposed to. In September 2023 the EU Commission issued a guidance note for EU operators on implementing enhanced due diligence to shield against Russian sanctions circumvention. It is to help European operators to identify, assess, and understand the possible risks of Russian sanctions circumvention. It includes circumvention red flags related to business partners and customers and .The EU Guidance note is in the same vein as the summary AML Alert  Russia sanctions – Trade sanctions circumvention  which was  produced by the Accountancy AML Supervisors’ Group (AASG) from an extract from the UK Department of Business and Trade notice NTE 2023/08: Russia sanctions – Trade sanctions circumvention published 22 May 2023. Details of this notice were brought to members attention in a news item from Professional Standards Dept. of the Institute of August 23, 2023 where they alluded to awareness of the risk and obligations in relation to sanctioned goods as an important first step for those working in the accountancy profession so that they do not become party to the trade sanctions circumvention. Other News In September 2023 the UK Financial Conduct Authority (FCA ) announced a review of the treatment of domestic Politically Exposed Persons (PEPs) by financial services firms. The review will look at firms’ arrangements for dealing with PEPs based in the UK and will report by the end of June 2024. In the previous month of August 2023 it invited UK PEPs to share their experiences, including any problems they or their family members have encountered with the PEPs regime. The FCA has previously (in 2017 ) published guidance for how financial services firms should treat customers who are politically exposed persons when meeting their anti-money laundering obligations. The Financial Reporting Council (FRC) has welcomed the appointment of Peter Wyman CBE as the Institute of Chartered Accountants in England and Wales (ICAEW) first externally appointed Chair of the Board to modernise and strengthen the ICAEW’s governance and leadership. The Charity Commission for Northern Ireland is writing to over 250 charitable organisations, in preparation for work to begin on phasing out what is known as the “combined list”.  A list of all organisations the Commission is aware of, which may be charities but have not been registered yet, the combined list has been an integral part of the regulator’s work to manage registration of all charities in Northern Ireland. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the annual update of its Reporting Manual on the European Single Electronic Format (ESEF). The Pensions Authority has published its 2022 Annual Report and accompanying statement from the Pensions Regulator. The Charities Regulator is holding a free webinar on Wednesday 27 September 2023 at 1pm to assist registered charities in preparing their annual reports. If you want to attend this you may register here. For further technical information and updates please visit the Technical Hub on the Institute website.

Technical Roundup is now published on the first and third Friday of every month – the next edition will be issued on 15 September 2023. 

Welcome to this week’s Technical Roundup. In case you missed it over the Summer…. The Institute has issued Technical Alert 05/2023 Questions and answers on the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards. The Technical Alert provides members with some information about the Corporate Sustainability Reporting Directive (CSRD) and explains when and how members may be impacted by it. The Institute has released Technical Release 02 2023 Solicitors Accounts Regulations 2023. This publication has been jointly developed by the member bodies of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I). The Law Society have recently introduced new Solicitors Accounts Regulations, which came into operation on 1 July 2023, and apply to accounting periods beginning on or after that date. TR 02/2023 is intended to provide information for members undertaking reporting engagements in accordance with the Regulations. It replaces Technical Release 01/2016 Solicitors Accounts Regulations 2014 – Republic of Ireland. The Technical Release summarises some of the key requirements of the Regulations which are available on the website of the Law Society of Ireland. Read more on these and other developments that may be of interest to members below. Financial Reporting The FRC issued amendments to FRS 101 and FRS 102 relating to the OECD's Pillar Two model rules. These amendments mirror similar changes made at international level to IAS 12 Income Taxes and introduce a temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules, alongside targeted disclosure requirements. The Financial Reporting Technical Committee of Chartered Accountants Ireland issued its response to the International Accounting Standards Board’s Exposure Draft Amendments to the Classification and Measurement of Financial Instruments Proposed amendments to IFRS 9 and IFRS 7. The Financial Reporting Council (FRC) has published the 21st edition of its Key Facts and Trends (KFAT) report, providing the latest statistical information and trends on the UK accountancy and audit profession. The FRC will be hosting some roundtables throughout September to gain stakeholder views on the new corporate reporting requirements. EFRAG has published its Final Comment Letter in response to the IASB's Exposure Draft 2023/2 Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) (‘the ED’).  The International Accounting Standards Board (IASB) has concluded its decision-making on two projects—its final steps before drafting and balloting two new IFRS Accounting Standards. The first of these forthcoming Accounting Standards is designed to clarify and enhance information companies provide about their financial performance. The other will simplify the financial statements prepared by subsidiaries of listed groups. Audit IAASA has published guidelines for the Recognised Accountancy Bodies to apply to their approval and resignation function in respect of Statutory Auditors and Audit Firms. These are effective from 1 June 2024. Sustainability In July, the Institute issued its response to the European Commission’s request for Feedback on its Draft Delegated Act. Following its consideration of the various responses to the request for feedback, the European Commission (EC) adopted the European Sustainability Reporting Standards (ESRS) on 31 July 2023. This marks a significant milestone in the development of European Sustainability Reporting Standards. The standard will enter into force following its publication in the Official Journal of the European Union and the first wave of entities will report under the ESRS for periods commencing on or after 1 January 2024. The reporting requirements will then be phased-in over the subsequent years to various company types and sizes. Accountancy Europe and the International Federation of Accountants (IFAC) are bringing together a diverse range of stakeholders to discuss the regulatory, policy and standard-setting path toward high-quality sustainability assurance and the main matters covered within the IAASB’s proposed standard. This in person event takes place on 3 October at the Accountancy Europe offices in Brussels. The IAASB issued the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation on August 2. When approved, ISSA 5000 will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe. It will apply to sustainability information reported about any appropriate sustainability matter and prepared under any suitable framework. It will also apply for both limited and reasonable assurance engagements. The Financial Reporting Council (FRC) Lab has published a new report titled “ESG Data Distribution and Consumption” examining how investors obtain and use environmental, social and governance The Financial Reporting Council (FRC) has also published a thematic review, assessing the quality and maturity of climate-related metrics and targets disclosures. The International Organization of Securities Commissions (IOSCO) has announced its endorsement of the International Sustainability Standards Board’s (ISSB) Standards following its comprehensive review of the Standards. Other News The Financial Reporting Council (FRC) has welcomed the Government’s publication of the draft statutory instrument on corporate reporting, which strengthens reporting requirements for very large companies in the UK. In August, the Financial Reporting Council has published the 21st edition of its Key Facts and Trends (KFAT) report, providing the latest statistical information and trends on the UK accountancy and audit profession; the International Auditing and Assurance Standards Board has issued the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its latest edition of the Spotlight on Markets Newsletter. The Department for Communities has announced the appointment of Gerard McCurdy as the new Chief Commissioner to the Board of the Charity Commission for Northern Ireland from 1 September 2023 to 31 August 2028.  Mr McCurdy has served on the Board since 1 March 2019 as the Deputy Chief Commissioner and as the Interim Chief Commissioner from December 2022. The Central Bank of Ireland is inviting feedback from stakeholders after publishing a discussion paper on an approach to developing a macroprudential policy framework for investment funds.  The publication aims to advance the ongoing international and European discussions on how a macroprudential perspective in the regulation of the funds sector could be achieved. It outlines key considerations for developing and operationalising such a framework. The closing date for submissions is 15 November. Minister Kevin Hollinrake, on behalf of the Department of Business and Trade, has announced the appointment of Richard Moriarty as CEO of the Financial Reporting Council (FRC), succeeding Sir Jon Thompson. The European Securities and Markets Authority (ESMA) has published a Report on Suspicious Transactions and Order Reports (STORs). The report provides an overview of how STORs are used across different jurisdictions in the context of the detection and investigation of market abuse, and how their use has evolved over time.   In July, IAASA responded to the IESBA (International Ethics Standards Board for Accountants) consultation on its Proposed Strategy and Work Plan, 2024-2027. The European Commission is adopting a package of infringement decisions due to the absence of communication by Member States of measures taken to transpose EU directives into national law For further technical information and updates please visit the Technical Hub on the Institute website.    

In developments this week, IAASA has published a June 2023 edition of Standards Newsletter which includes information on the revision of ISA (Ireland) 600 for group audits and international developments; in the UK, the Department for Business and Trade has launched a new digital service, the Regulated Professions Register (RPR) which provides information about 200 regulated professions in the UK in one place on GOV.UK. Read more on these and other developments that may be of interest to members below. Assurance and Audit Technical Release 01/2023 Safeguarding reporting for payment and electronic money firms has been issued. The purpose of this Technical Release (TR) is to provide assistance to auditors who are engaged by Payment and Electronic Money (E-Money) institutions (the Firms) following a request from the Central Bank of Ireland to carry out an engagement pursuant to a letter to the Firms dated 20 January 2023 and a further communication on 25 May 2023. IAASA has published a June 2023 edition of Standards Newsletter. It includes information on the revision of ISA (Ireland) 600 for group audits, updates to the CEA guidance note, ethics for auditors in Ireland, proposed revisions to ISA (UK) 505 and international developments. ISSA 5000 General Requirements for Sustainability Assurance Engagements: The proposed International Standard on Sustainability Assurance 5000 (ISSA 5000) was approved by the IAASB and will be open for public consultation by August. This proposed standard aims to enhance confidence in sustainability reporting, responds to IOSCO recommendations, and complements the work of other standard setters, including the International Ethics Standards Board for Accountants, EFRAG, International Sustainability Standards Board and IFRS Foundation, Global Reporting Initiative, and others. Once finalized, ISSA 5000 will serve as a comprehensive, stand-alone standard suitable for limited and reasonable sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. Moreover, the standard will be profession-agnostic, enabling its use by professional accountants and other professionals performing sustainability assurance engagements. Sustainability The International Sustainability Standards Board (ISSB) issued its inaugural standards—IFRS S1 and IFRS S2—on 26 June 2023.  The standards create a common language for disclosing the effect of climate-relates risks and opportunities in companies. Two webcasts recently hosted by ISSB Vice-Chair Sue Lloyd focus on IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and articulate how IFRS S1 and IFRS S2 work together, with IFRS S1 setting out the way companies should approach reporting. The ISSB has also released an article entitled “Ten things to know about the first ISSB Standards”. EFRAG has welcomed the publication of IFRS S1 and S2, noting that their publication is a major step forward towards a global baseline in sustainability disclosure requirements. The International Federation of Accountants (IFAC) has also welcomed the release of the standards and issued an urgent call for the global accountancy profession to drive adoption and use of the standards. The European Commission (EC) issued the Corporate Sustainability Due Diligence Directive (CS3D) to trigger a behavioural change and hold businesses accountable for the impacts of their operations on environment and human rights. As the EU institutions are entering the trilogues on the CS3D, an in-person event is being held on 5 July in Brussels at the offices of the European Parliament which will bring together speakers representing the European Parliament, EC, investors, business and civil society to debate key issues and hear their priorities for the negotiations. The UK Endorsement Board (UKEB) has issued its draft comment letter relating to the ISSB’s recent Request for Information to inform its initial two-year work plan. Comments are requested by 23 July 2023. The Department of Enterprise, Trade and Employment is holding a webinar on the Corporate Sustainability Reporting Directive on Tuesday 4 July at 3pm. The webinar will provide an update on the policy decisions taken following the recent public consultation on member state options, and an update on its transposition plans. Registration is open here. Financial Reporting While opening the IFRS Conference 2023, Andreas Barckow, Chair of the International Accounting Standards Board (IASB) spoke about the role of financial reporting in uncertain times and how the IASB is supporting companies and ensuring investors’ information needs are met. Speaking at the opening of the same event, Emmanuel Faber spoke about the International Sustainability Reporting Standards (ISSB) and the role they will play in the future. The European Financial Reporting Advisory Group’s (EFRAG) draft comment letter in relation to the IASB’s Exposure Draft 2023/2 Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) remains open for comment until 30 June 2023. The International Accounting Standards Board (IASB) has published the Request for Information: Post-implementation Review of IFRS 15 Revenue from Contracts with Customers. This request for information is intended to inform the upcoming post-implementation review of IFRS 15. This June IASB Update has been issued which highlights preliminary decisions of the International Accounting Standards Board (IASB). Projects affected by these decisions can be found on the work plan. The UKEB has published its Draft Endorsement Criteria Assessment (DECA) on International Tax Reform: Pillar Two Model Rules (Amendments to IAS 12). Comments are requested by 10 July 2023. The Financial Reporting Council (FRC) has published new technical actuarial guidance on models (TAS 100), which comes into effect on 1 July 2023. The FRC Lab has released its latest Insight Report entitles “Disclosure of dividends revisited”. Anti Money Laundering Readers with an interest in virtual assets and virtual asset service providers can read the recent report from FATF entitled Targeted update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers. FATF writes that this report is the fourth update on global implementation of these requirements, including the travel rule, a key FATF requirement to prevent funds being transferred to sanctioned individuals or entities. The report finds that, four years later, global implementation is poor and remains behind that other sectors and that many jurisdictions have not yet implemented fundamental requirements. Register of Beneficial Ownership: Following the 2022 judgment of the Court of Justice of the Europe Union, access to the Register of Beneficial Ownership has been severely restricted. New regulations, the European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) (Amendment) Regulations 2023 (SI 308 of 2023) have restricted the basis for access to the central register as a matter of legislation. Click here for our recent news item with details. Other News Decision Support Service: The Consultative Committee of Accountancy Bodies - Ireland (CCAB-I), of which Chartered Accountants Ireland is a member, has recently issued Technical Alert 04 2023 Help sheet on the appointment of a Decision-Making Representative under the Assisted Decision-Making (Capacity) Act 2015. This help sheet signposts certain features of the Decision Support Service (DSS) as it may relate to the work of our members in their role as a professional accountant. IAASA Annual Report: The Minister for Enterprise, Trade & Employment has laid the Authority’s 2022 Annual Report before the Houses of the Oireachtas.  The report provides detail on the many activities undertaken by the Authority in 2022, together with an outline of the strategic actions undertaken by IAASA in the context of its remit to oversee auditing and accounting in Ireland. Regulated Professions Register launched in the UK: The Department for Business and Trade has launched a new digital service, the Regulated Professions Register (RPR). The RPR provides information about 200 regulated professions in the UK in one place on GOV.UK, and the service is particularly relevant to professionals from overseas seeking to access the UK labour market and also to UK businesses wishing to attract overseas professionals to the UK.  The service signposts individuals to their chosen profession, offers them information about how the profession is regulated and by whom, and provides contact details for the relevant regulator. In launching the service, the Department notes that having this information in one, easily accessible place will make it easier for qualified professionals to navigate the UK labour market, and that it will also be a useful tool to understand more about the UK’s regulatory landscape and the various legislation governing regulated professions. Find out more here.’ The Irish Minister for Finance recently launched a public consultation on Ireland’s funds sector entitled “Funds Sector 2030: A Framework for Open, Resilient & Developing Markets”. The public consultation period will run until 15 September 2023. Click here for preliminary details from the Central Bank on a Financial System Conference 2023 – “Achieving good outcomes in an uncertain world”. The conference will be held in November 2023 and CBI gives details on its webpage of how to register your interest. Technical roundup is taking a break for the summer and the next Roundup will be issued on Friday 1 September. Any updates during this period will be published on the technical hub on the Institute's website.    

In developments this week, the Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting; the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. Read more on these and other developments that may be of interest to members below. Assurance and Audit Technical Release 01/2023 Safeguarding reporting for payment and electronic money firms has been issued. The purpose of this Technical Release (TR) is to provide assistance to auditors who are engaged by Payment and Electronic Money (E-Money) institutions (the Firms) following a request from the Central Bank of Ireland to carry out an engagement pursuant to a letter to the Firms dated 20 January 2023 and a further communication on 25 May 2023. The Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting.  The report, commissioned by the FRC and conducted by independent research agency YouGov, involved qualitative interviews with 40 ACCs of Public Interest Entities (PIEs), representing a diverse range of organisations, including FTSE 100 and FTSE 250 companies, other listed equities, building societies, and unlisted banks.  The FRC has published a response to the consultation on proposed amendments to the Audit Enforcement Procedure (AEP) and related guidance launched on 3 April 2023. The main purpose of the proposals was to effect changes to the decision-making remit of the Board and the Case Examiner under Part 2 of the AEP (Initial Stages). Financial Reporting The Financial Reporting Council (FRC) has updated its guidance to Actuarial Standard Technical Memorandum 1 (AS TM1) version 5, which provides clarity on the application of some paragraphs within the standard. The International Accounting Standards Board (IASB) has issued the June 2023 IFRS for SMEs Accounting Standard update. This covers news, events and other developments in the standard during the month. This update includes an overview of the proposed amendments to the standard relating to the Pillar Two model rules. Insolvency For the first time in Ireland, the Court has appointed an Examiner to a foreign registered, non-EU company on the basis that its centre of main interests is in Ireland. McCann FitzGerald solicitors are acting for the Company in examinership and has summarised this precedent appointment. We have recently been engaging with the Examiner of the High Court who has noted that Judge Quinn, who manages the Examiner’s Court List, is keen to finalise a number of old liquidations in the coming months. The Examiner is seeking the engagement of Liquidators in helping to finalise these matters. In that regard, the Examiner will shortly be in contact directly with the Solicitors who act for Liquidators in these matters asking for papers to be submitted for a Final Application to the Court and your co-operation in preparing up to date Liquidator’s Reports would be greatly appreciated. Sustainability The International Sustainability Standards Board (ISSB) has announced that it will issue its sustainability standards IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures on 26 June 2023. Accountancy Europe have made available some working documents which compare the first set of European Sustainability Reporting Standards (ESRS) proposed in the recent Delegated Act to the European Financial Reporting Advisory Group’s original drafts. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a Call for Evidence (CfE) on integrating sustainability preferences into suitability assessment and product governance arrangements under the Markets in Financial Instruments Directive (MiFID) II. The objective of this Call for Evidence (CfE) is to gather industry feedback that will help better understand the evolution of the market and provide answers as to how firms apply the new MiFID rules on sustainability. The FRC has issued its response to the ISSB consultation on the methodology for enhancing the international applicability of the SASB Standards and SASB Standards Taxonomy updates. Other News Accountancy Europe has published its June 2023 SME update. The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) has this week launched a public consultation on the first batch of policy products under the Digital Operational Resilience Act (DORA). This includes four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS). These technical standards aim to ensure a consistent and harmonised legal framework in the areas of ICT risk management, major ICT-related incident reporting and ICT third-party risk management. The consultation runs until 11 September 2023. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. It sets out the key achievements of the authority in fulfilling its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union (EU) during a transformative year.   The European Banking Authority (EBA) has published its Report on money laundering and terrorist financing (ML/TF) risks associated with EU payment institutions. Its findings suggest that ML/TF risks in the sector may not be assessed and managed effectively by institutions and their supervisors. The Central Bank has published its second Quarterly Bulletin of 2023. For further technical information and updates please visit the Technical Hub on the Institute website.

Welcome to this week’s Technical Roundup. In developments this week, the World Economic Forum continues its work with the International Sustainability Standards Board (ISSB) by convening a group of sustainability professionals focused on sharing best practices and practicalities of adopting ISSB Standards; the Financial Conduct Authority (FCA) has issued financial promotion rules for cryptoassets and a consultation on guidance on how it approaches, and how firms comply with, FCA requirements that crypto-asset financial promotions must be fair, clear and not misleading. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has published its thematic review of fair value measurement. This publication reflects the FRC’s Corporate Reporting Review team’s experiences with IFRS 13 and has a particular focus on disclosure matters, with some measurement issues also discussed. The FRC has also published research into the impact of proxy voting advisors and ESG ratings agencies on actions and reporting by FTSE350 companies and investor voting decisions. The IFRS Interpretations committee has issued its June 2023 update which includes details of some of the requests that it has received in relation to; A merger between a parent and its subsidiary (IAS 27) Application of the ‘Own Use’ Exception (IFRS 9) Consolidation of a non-hyperinflationary subsidiary by a hyperinflationary parent (IAS 21 & IAS 29) In order to understand preparer’s views on the International Accounting Standards Board’s (IASB) upcoming Request for Information on the implementation and application of IFRS 15, the UK Endorsement Board is holding some roundtables on 20 and 21 June. Insolvency The Financial Conduct Authority is placing a ban on debt packagers receiving remuneration from debt solution providers. The ban covers any commission, fee or any other financial consideration, received by a debt packager firm, directly or indirectly, from a debt solution provider in connection with the firm referring customers to a debt solution provider, or any other related services.   Sustainability Accountancy Europe is hosting an in-person event on 5 July 2023 at their Brussels offices – CSRD: Striving for Consistent and Quality Sustainability Assurance Engagements across the EU. The European Commission launched a consultation this week seeking feedback in relation to draft delegated regulation supplementing Directive 2013/34/EU as regards sustainability reporting standards. The European Sustainability Reporting Standards (ESRS) in the draft Delegated Act include significant revisions to the draft standards recommended by the European Financial Reporting Advisory Group (EFRAG) in November 2022, which include additional phase-ins, making certain disclosures voluntary, and making all disclosure requirements (apart from a set of general disclosures) subject to materiality assessments. The consultation closes on 7 July 2023. The World Economic Forum continues its work with the International Sustainability Standards Board (ISSB) by convening a group of sustainability professionals focused on sharing best practices and practicalities of adopting ISSB Standards.   Cryptoassets The Financial Conduct Authority in the UK has some recent publications on cryptoassets It released it latest 'Research Note: Cryptoassets consumer research 2023'. The research series began in 2019 to understand the trend in UK adults’ cryptoassets holdings and changes in consumer behaviour and is continued annually to gain further insights into the potential harms and benefits of cryptoassets and understand consumers’ attitudes towards cryptoassets. The FCA says the results from this research will be used to inform its cryptoassets policy work. In the conclusion it is stated that cryptoassets remain a high-risk investment, and anyone who looks to purchase them should be aware of the risks and be prepared to lose all their money. Cryptoassets predominantly sit outside of the FCA’s current regulatory perimeter and users of cryptoassets are unlikely to be covered by financial protections such as the FSCS. In further crypto news the FCA also issued Financial promotion rules for cryptoassets and a consultation on guidance on how it approaches, and how firms comply with, FCA requirements that crypto-asset financial promotions must be fair, clear and not misleading. All cryptoasset firms marketing to UK consumers, including firms based overseas, will need to comply with the UK financial promotions regime from 8 October 2023.  The UK Government is bringing promotions of certain cryptoassets within their remit. The financial promotions regime will apply to all firms marketing cryptoassets to UK consumers regardless of whether the firm is based overseas or what technology is used to make the promotion.   Other News The CCAB-I Business Law Committee submitted a response to the Department of Enterprise, Trade and Employment public consultation on proposed amendments to Companies Act 2014. The response which is available on our website focused on responding to the areas which most impact members from a technical perspective. The Central Bank Deputy Governor spoke recently at the Banking and  Payments Federation Ireland  Retail Banking Conference 2023.The topic was ESG integration in the banking sector. The conclusion was while there is much done, there is much more to do and details of the speech can be accessed here. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its follow-up report to the peer review on the Guidelines on ETFs and other UCITS issues. The report shows that the National Competent Authorities (NCAs) have strengthened their supervisory practices, enhanced internal and external guidance, and performed supervisory work in the area of Exchange-traded funds (ETFs) and other Undertakings for Collective Investment in Transferable Securities (UCITS) since 2018. The Department of Enterprise, Trade and Employment invites expressions of interest from suitably qualified individuals for membership of the Enterprise Digital Advisory Forum (EDAF).  Established in May 2022, the forum plays a key role in advising and working with government to drive industry adoption digital technologies, in accordance with the National AI Strategy and the National Digital Strategy. The UK Financial Intelligence Unit has recently published its latest SARs Reporter Booklet for June 2023 . It provides case study examples highlighting the work of law enforcement agencies in utilising SAR intelligence to initiate investigations and to inform existing ones. The Irish Workplace Relations Commission has, for information purposes published a WRC Remedies Table  (last revised May 31 2023) which sets out the remedies that may be granted by a WRC Adjudication Officer in the different areas of employment and equality legislation which come under the WRC’s jurisdiction. While the WRC states that the table should not be relied upon in place of legal advice and the WRC accepts no liability for reliance on it is a useful summary table for anyone with an interest in employment law. The OECD Guidelines for Multinational Enterprises on Responsible Business Conduct are standards which multinational enterprises are expected to meet, and which OECD member countries have committed to uphold. The Guidelines are recommendations on responsible business conduct and provide non-binding principles and standards in a global context. The 2023 edition of the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct has recently been published and they can be accessed by going to this page where key updates are also summarised. For further technical information and updates please visit the Technical Hub on the Institute website.

Welcome to this week’s Technical Roundup.    In developments this week, IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been re-published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation; the Financial Reporting Council has announced the launch of a new initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market. Read more on these and other developments that may be of interest to members below.  Financial Reporting The Financial Reporting Technical Committee of Chartered Accountants Ireland has responded to the Financial Reporting Council’s recent exposure draft ‘FRED 83’. The amendments proposed in this exposure draft address how deferred tax should be accounted for under FRS 101 and FRS 102 where a company is subject to the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two Model Rules. The European Financial Reporting Advisory Group (EFRAG) has issued an updated Endorsement Status Report, which now reflects the publication of amendments to IAS 7 and IFRS 7 (Supplier Finance Arrangements) and IAS 12 (Pillar Two Model Rules). The IASB has published the Exposure Draft International Tax Reform- Pillar Two Model Rules- Proposed Amendments to the IFRS for SMEs Standard. This follows similar proposed amendments to International Accounting Standards and FRS 102. The IASB has issued its May 2023 update and podcast. IAASA previously published a guidance note on Reporting to the Director of Corporate Enforcement in 2019. The guidance note has been published with updated referencing arising from the Companies (Corporate Enforcement Authority) Act 2021, updated ISAs and other relevant legislation. The UK Endorsement Board (UKEB) has issued its draft comment letter relating to the IASB Exposure Draft Amendments to Classification & Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) for public consultation. Comments on this are requested by 26 June 2023. The UKEB is holding some roundtable discussions on 20 and 21 June to discuss the IASB’s forthcoming Request for information on the Post-Implementation Review of IFRS 15. This month’s International Accounting Standards Board (IASB) meeting was held on 22-24 May. The May IASB Update podcast includes: a summary of the supplementary meeting the IASB held on 3 May about proposed amendments to the IFRS for SMEs Accounting Standard relating international tax reform; progress made in the Primary Financial Statements project; The International Accounting Standards Board (IASB) on 30 May launched a call for stakeholders’ feedback on its post-implementation review of the expected credit loss requirements in IFRS 9 Financial Instruments.  The ‘expected credit loss’ model in IFRS 9 replaced the previous ‘incurred credit loss’ model, which only allowed credit losses to be recognised when a loss event occurred. The UKEB has published a joint Draft Endorsement Criteria Assessment on Classification of Liabilities as Current or Non-current — Amendments to IAS 1 issued by the IASB in January 2020; and Non-current Liabilities with Covenants —Amendments to IAS 1 issued by the IASB in October 2022. Comments are requested by 8 June 2023. Audit The Financial Reporting Council proposes to revise International Standard on Auditing (UK) 505 External Confirmations to reflect recent enforcement findings and to ensure that the standard is reflective of modern approaches to obtaining confirmations with additional material on the use of digital platforms, enhanced requirements in relation to investigating exceptions and a prohibition on negative confirmations. Comments are requested by 1 September 2023. The Financial Reporting Council (FRC) has announced the launch of a new initiative to assist smaller firms in conducting high-quality audits in the Public Interest Entity (PIE) market. The Scalebox initiative aims to promote competition and choice in the PIE audit market and support the FRC's role as an Improvement Regulator. Insolvency The CCAB-I Insolvency Committee has recently published Technical Alert 03 2023 Changes to examinership regulations. This Technical Alert provides updates on significant changes to the examinership process following the introduction of The European Union (Preventive Restructuring) Regulations 2022 (SI 380/2022) and outlines a number of the key amendments to Companies Act 2014 arising from the transposition of EU Directive 2019/1023. Sustainability In its recently released publications, the International Federation of Accountants (in collaboration with the We Mean Business Coalition , Accounting for Sustainability, the Global Accounting Alliance and World Business Council for Sustainable Development) discuss how accountants can get greenhouse gas reporting in order. Other News The European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has published a joint Discussion Paper seeking stakeholders’ input on aspects of the Digital Operational Resilience Act (DORA). This Discussion Paper follows the European Commission’s request for technical advice on the criteria for critical ICT third-party providers (CTPPs) and the oversight fees to be levied on them. Interested stakeholders are invited to provide their input by 23 June 2023. For further technical information and updates please visit the Technical Hub on the Institute website.  

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.     

Welcome to this week’s Technical Roundup.    In developments this week, the IFRS Foundation has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements; a new tool from the International Federation of Accountants (IFAC) is now available to help professional accountancy organizations (PAOs) take leading roles in the anti-corruption fight in their jurisdictions. Read more on these and other developments that may be of interest to members below.  Audit IAASA has published its 2022 Annual Audit Programme and Activity Report. This report provides a summary of the activities performed by IAASA during 2022 to oversee the audit profession in Ireland. Financial Reporting The IFRS Foundation has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements. While the IFRS for SMEs Accounting Standard does not explicitly refer to climate-related matters, there are many areas of the standard where entities should consider climate-related matters and how this impacts accounting treatment. The educational material has been developed in response to feedback from some members of the SME Implementation Group and respondents to the 2022 Exposure Draft Third edition of the IFRS for SMEs Accounting Standard. This feedback identifies that interest in the potential effects of climate-related matters on SMEs’ financial statements is growing among users of those statements. The UK Endorsement Board has adopted Lease Liability in a Sale and Leaseback- Amendments to IFRS 16. The Amendments add subsequent measurement requirements for sale and leaseback transactions to improve the requirements for such transactions in IFRS 16 Leases. These amendments were issued in September 2022 by the International Accounting Standards Board. The amendments have an effective date of 1 January 2024, with early application permitted. The European Council has extended the scope of rules to transfers of crypto assets, with the intention of making it more difficult for criminals to circumvent anti-money laundering rules via crypto currencies. Under the new rules, crypto asset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of crypto transfers, regardless of the amount being transacted. Sustainability In a EU Green Week 2023 partner event, the Association of Chartered Certified Accountants (ACCA), Accountancy Europe and the International Federation of Accountants (IFAC) will bring together global experts on 8 June to discuss the skills and education needed for finance professionals to contribute to a green and just transition. Insolvency The Insolvency Service in the UK is seeking views on proposed changes to its statistics publications to ensure it continues to produce relevant statistics that meet users' needs. The consultation closes on 30 June 2023. Other The FRC is hosting a webinar on the proposed revisions to Technical Actuarial Standard 300 (TAS 300) and the introduction of Technical Actuarial Standard 310 (TAS 310) relating to pensions. The proposed revisions include requirements for providing advice on setting actuarial factors and for bulk transfer exercises including buyout transactions with an insurer and transfers to a pension superfund. TAS 310 sets out the standards for actuarial work in relation to collective money purchase pension schemes.  The CCAB-I Business Law Committee has published a Technical Alert entitled Questions and Answers on the provision of PPSN for directors on certain CRO filings. This document outlines what is required under the new requirement, the potential issues arising and some practical guidance on actions that directors and their advisors can take to prepare for the new requirement which comes into effect on 11 June 2023. The European Securities and Markets Authority has released the latest edition of its Spotlight on Markets Newsletter. This Newsletter includes details of the third edition of the ESMA’s Data Quality report. On 8 May 2023, the Department of Enterprise Trade and Employment (DETE) launched a public consultation on proposals to enhance the Companies Act 2014. DETE has published a press release and consultation paper ion their website. The Institute will be making a submission in response to the consultation on behalf of members and all submissions can be emailed to companylawconsultation@enterprise.gov.ie .The closing date is no later than 5pm on 9 June 2023. A new tool from the International Federation of Accountants (IFAC) is now available to help professional accountancy organizations (PAOs) take leading roles in the anti-corruption fight in their jurisdictions. Global Fight, Local Actions: Anti-Corruption Advocacy Workbook for PAOs equips PAOs and accountancy profession leaders with the background and framework to craft bespoke approaches and messages that best fit their jurisdiction and needs. For further technical information and updates please visit the Technical Hub on the Institute website. Technical Hub on the Institute website.     

Welcome to this week’s Technical Roundup.    In developments this week, the International Sustainability Standards Board has published Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards; the European Securities and Markets Authority has decided to postpone to 2024 the amendment of the European Single Electronic Format (ESEF) Regulatory Technical Standard (RTS). 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 its draft comment letter in response to the International Accounting Standards Board’s (IASB) Exposure Draft 2023/2 Amendments to the Classification and Measurement of Financial Instruments. Comments are requested by EFRAG until 30 June 2023. EFRAG, along with ICAS and EFFAS have published The production and consumption of information on intangibles: An empirical investigation of preparers and users. This academic study looks at the measures and disclosures on unreported intangibles that are considered useful for decision making in financial statements. The Financial Reporting Council (FRC) has published a consultation to revise Technical Actuarial Standard 300 (TAS 300) and introduce Technical Actuarial Standard 310 (TAS 310), aimed at ensuring the actuarial standards in relation to pensions remain relevant and reflect developments in the pension industry. Audit The Commission for the Regulation of Utilities (CRU) has issued updated guidance for PSO Notification to Suppliers - Engagement of Auditors 2023-24, the updates reflect the revised ISRS 4400 Engagements to perform Agreed-upon Procedures regarding Financial Information. https://www.cru.ie/publications/27473/ Anti money laundering The UK National Crime Agency has issued its latest SARs in Action Issue 20. It deals with topics such as key trends in fraud, romance fraud, money mules and fraud communications and the accountancy sector as an attractive target for payment diversion fraud. Sustainability Public Sector Guidance to Report on Sustainability Program Information.  The International Public Sector Accounting Standards Board (IPSASB®), developer of IPSAS, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued Reporting Sustainability Program Information—Amendments to RPGs 1 and 3: Additional Non-Authoritative Guidance. To access this guidance, its summary At-a-Glance document, and webcast, visit the IPSASB website. The International Sustainability Standards Board has published Exposure Draft Methodology for Enhancing the International Applicability of the SASB Standards.  The document will be available to download from the Open for comment section and from the International Applicability of the SASB Standards project page. The Irish Central Bank has recently issued a financial stability note entitled “Going Green, The Growth in Green Mortgage Financing in Ireland” .Content includes an overview, characteristics of green mortgages and comparison of green and non-green market shares. Click to read an article on “How Ireland Is Becoming a leader in Renewable Energy Technology” Other The European Securities and Markets Authority (ESMA) has decided to postpone to 2024 the amendment of the European Single Electronic Format (ESEF) Regulatory Technical Standard (RTS). This decision is in part due to the limited changes in the 2023 update to the International Financial Reporting Standards (IFRS) Taxonomy. On May 8th, 2023, the Dept. Of Enterprise Trade and Employment (DETE) launched a public consultation on proposals to enhance the Companies Act 2014. Please click the link for the DETE press release on the consultation and here to access the consultation and submissions can be e mailed to companylawconsultation@enterprise.gov.ie. The Institute will be working with the various committees to respond to the consultation on behalf of members The closing date is no later than 5pm on 9 June 2023. The consultation is divided into four sections and below you can read a summary of what each section entails if you click onto an Institute news article here. The Institute recently hosted a webinar on the Protected Disclosures (Amendment) Act 2022 which was moderated by Stephen Lowry, Public Policy manager at the Institute. Panellists were Barry Robinson of BDO Ireland, Michael Deeny, an experienced compliance officer and Annelie Demred of Whistlelink, and Institute Technical Manager, Lilian Halpin. The webinar gave an overview of the new legislation, client insights and their experience of implementation together with a demonstration of a whistleblowing compliance tool. You can view a recording of the webinar here: https://lnkd.in/erP92edn Government approval has been welcomed for the priority drafting of legislation to enhance the protection of employees in collective redundancies following insolvency. According to DETE the Bill will further enhance the protection of employees in a collective redundancy situation following their employer’s insolvency by amending the Protection of Employment Act 1977, which governs collective redundancy rules, and the Companies Act 2014. The Bill will also provide for the establishment of a new statutory Employment Law Review Group which will advise the Minister for Enterprise, Trade and Employment on all aspects of employment and redundancy law. The Bill will strengthen the already robust legislative protections and safeguards afforded to the employees. The Companies Registration Office (CRO) has issued the revised date for the requirement to provide a company director’s PPSN for certain filings. The date is now Sunday 11th June 2023 and the CRO has published FAQs to provide further information.    Click to read the Governor of the Central Bank’s blog on crypto and how we can protect the consumer. He discusses the Central Bank’s position on the monitoring and regulation of crypto, decentralised finance, and the scope for leveraging its potential. He references the crypto ecosystem and the risks from crypto and how to address the crypto risk. He also welcomes the European Parliament’s recent approval of the Markets in Crypto Assets Regulation (MiCA). The Minister for Finance recently spoke at a dinner for the Irish Funds sector .He spoke generally about the sector and also mentioned recent Cabinet approval for a review of the Funds sector which  will seek to ensure that the funds sector framework is up-to-date and fit for purpose in the years ahead and that it continues to support national and regional economic growth, as well as job creation. The review will involve a consultation and a 3-month period for completion of submissions.  The Workplace Relations Commission recently published its annual report for 2022. In the report you can read about its activities for the year, and it includes information on Inspection and Enforcement Service, inspections in 2022 and Civil Enforcement of Adjudication Awards together with complaints in 2022, details of its Conciliation, Advisory and Mediation Services and its legal division. In other news on the WRC, it has been directed under Section 20(2) of the Workplace Relations Act 2015, to prepare a Code of Practice on the ‘Right to Request Remote Working’ as required under Part 4 of the Work Life Balance and Miscellaneous Provisions Act 2023. See here for WRC website also for further information. To that end it is undertaking a public consultation with a view to drafting a Code of Practice on the Right to Request Remote Working. Submissions on this matter to be submitted to the WRC by 5pm on 9 June 2023. For further technical information and updates please visit the Technical Hub on the Institute website. Technical Hub on the Institute website.     

Welcome to this week’s Technical Roundup.    In developments this week, the Financial Reporting Council has welcomed the Financial Conduct Authority's recently published consultation on Primary Markets Effectiveness, which propose significant reforms to improve the framework for listing commercial companies' equity shares; IDA Ireland has published its May 2023 monthly e-zine where you can read its latest industry news including about the EU’s Chips Act and Irish aerospace collaboration securing €2.5m Disruptive Technologies Innovation funding. Read more on these and other developments that may be of interest to members below.  Financial Reporting The Institute has recommended, in its response to FRED 82, that the FRC allow small companies an additional three years before they must apply the proposed leasing amendments set out in the Periodic Review of FRS 102. This recommendation is in recognition of the increased compliance demands and reporting requirements which some smaller companies will be exposed to as a result of the changes, as well as the potential consequence that some companies will increase in size as a result of the change. The European Financial Reporting Advisory Group (EFRAG) has issued its April 2023 update. This summarises public technical discussions held and decisions taken during the month. The Financial Reporting Council (FRC) has welcomed the Financial Conduct Authority's (FCA) recently published consultation on Primary Markets Effectiveness, which propose significant reforms to improve the framework for listing commercial companies' equity shares.   The FCA's proposals aim to improve the competitiveness of the UK equity market by creating a more attractive and compelling option for companies considering a share listing in the UK. The proposals include replacing the current standard and premium listing share categories with a single listing category for commercial company issuers of equity shares, retaining the sponsor regime with modifications, and retaining discrete listing categories for other types of instruments. Audit Chartered Accountants Ireland has responded to the IAASB consultation on the Proposed Part 10, Audits of Group Financial Statements of The Proposed ISA For Audits of Financial Statements of Less Complex Entities (ISA for LCE).  The initial proposed ISA for LCE (in 2022) excluded all groups from the scope of the standard, the proposed changes would include some groups, a move we welcome in our response. The IAASB envisions approving a final standard in December 2023. Institute responses to recent consultations can be read here. Accounting The International Accounting Standards Board (IASB) have issued their April 2023 Update which highlights preliminary decisions and projects affected by these decisions. Anti money laundering In April 2023 the UK National Crime Agency has issued its latest edition of its booklet “Suspicious Activity Report (SAR) Glossary Codes and Reporting Routes” and this booklet replaces all previous glossary codes publications. Sustainability Would you like to know more about the Corporate Sustainability Reporting Directive (CSRD)? Join Dee Moran, Professional Accountancy Lead, Chartered Accountants Ireland and Lisa Campbell, Head of Operations in IAASA to understand more about the directive and what future developments might mean for your organisation. There will also be an overview of the proposed European Sustainability Reporting Standards, an update on the assurance of sustainability reporting and an opportunity to ask questions. The webinar will take place on 25 May at 10am and you can register here to attend. Other IDA Ireland has published its May 2023 monthly e-zine where you can read its latest industry news including about the EU’s Chips Act and Irish aerospace collaboration securing  €2.5m Disruptive Technologies Innovation funding. The Charities Regulator has recently issued its latest newsletter  and includes new guidance on charity registration and information on the Charities Regulator stakeholder forum . For further technical information and updates please visit the Technical Hub on the Institute website.