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Roundup

Technical Roundup 20 September

Roundup 20 September 2024 Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month. In developments since the last edition, the International Accounting Standards Board has announced the start of a research project to review and improve the requirements for the statement of cash flows and related matters in IFRS Accounting Standards. The Department of Enterprise, Trade and Employment has recently confirmed changes to the procedure for notifying the Minister of proposed collective redundancies, pursuant to section 12 of the Protection of Employment Act 1977. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has published new September 2024 editions of UK and Irish financial reporting standards. These standards consolidate all recent amendments to the standards, including the amendments arising from the recent periodic review of the standards. The following September 2024 publications are included on the FRC website. Overview of the financial reporting framework FRS 100 Application of Financial Reporting Requirements FRS 101 Reduced Disclosure Framework FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 103 Insurance Contracts Implementation Guidance to accompany FRS 103 Insurance Contracts FRS 104 Interim Reporting FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime The European Financial Reporting Advisory Group (EFRAG) has issued its August 2024 Update. This report summarises the public technical discussions and decisions taken in the past month as well as open consultations, future events and vacancies. EFRAG has published its feedback statement on its response to the International Accounting Standards Board’s (IASB’s) exposure draft Contracts for Renewable Electricity (proposed amendments to IFRS 9 and IFRS 7). The feedback statement summarises constituent’s feedback, including responses to EFRAG’s draft letter and outreach activity findings. The International Accounting Standards Board (IASB) has announced that it is starting a new research project designed to review and improve the requirements for the statement of cash flows and related matters in IFRS Accounting Standards. The IFRS Interpretations Committee (IFRIC) has released its September 2024 update which summarises the decisions reached in its public meeting on 10 September. During the meeting, IFRIC considered requests received in relation to the following matters; Guarantees issued on obligations of other entities Recognition of revenue relating to tuition fees The IASB has proposed amendments to IAS 28 in its exposure draft Equity Method of Accounting – IAS 28 Investments in Associates and Joint Ventures. The proposed amendments add to and clarify how to apply the equity method by answering application questions that the IASB has received over several years. The consultation period remains open until 20 January 2025. The UK Endorsement Board (UKEB) Survey response deadline on IFRS 18 Presentation and Disclosure in Financial Statements has been extended to 30 September. In its Autumn 2024 Joint Committee Report, the three European Supervisory Authorities (EBA, EIPOA and ESMA) have warned national supervisors of the financial risks stemming from economic and geopolitical uncertainties. Auditing and Assurance The International Auditing and Assurance Standards Board has published a report, Balancing Effectiveness and Timeliness in Audit and Assurance Standard Setting.  This report gives an overview of the IAASB’s progress in addressing key public interest issues and reiterates its strategic direction to continue bolstering confidence in audits and assurance engagements. The Financial Reporting Council welcomes the Government tabling legislation in Parliament on 9 September 2024 to address the significant delays in local authority audits. This follows the Written Ministerial Statement issued on 30 July 2024. Insolvency The Department of Enterprise, Trade and Employment has recently confirmed changes to the procedure for notifying the Minister of proposed collective redundancies, pursuant to section 12 of the Protection of Employment Act 1977, as amended. These changes took effect from 1 July 2024. More information is available on our website. Readers may want to take note of a recent UK High court judgment in connection with the collapse of the retailer British Home Stores (in 2016) and the findings made against individual directors in relation to Wrongful Trading Claims, a Trading Misfeasance Claim and Individual Misfeasance Claims. Two of the directors were each ordered to make a contribution of £6.5m (roughly 15% of the total) to the companies’ assets, on a several liability basis and another director was ordered to make a contribution of £21.5m to the companies’ assets. Please click for an article by UK law firm Burges Salmon which analyses the judgment in detail and the article provides a number of key takeaways for directors of distressed businesses as follows: Navigating duties during times of financial difficulty has never been more complex or potentially risky Directors must ensure that they are up to the task Professional advice is a key protection, but the court will view it in context Board minutes in a distressed situation must be a faithful record of proceedings Directors exercising limited functions may not abdicate decisions for the whole board Directors should not assume that they will be shielded by insurance Please also click for an article by UK law firm Jones Day on the BHS judgment in particular their closing comment that …”. While the BHS facts are relatively extreme, the fact that directors were found liable to such an extent, when in some cases they were earning around £150,000 a year and (at least in one case) had limited involvement at board level, is a warning to all directors of companies facing financial pressure”.  Sustainability EFRAG held its Sustainability Board meeting on Tuesday 17 September 2024. The Hong Kong Institute of Certified Public Accountants (HKICPA) has published two exposure drafts (EDs) for sustainability reporting standards that are fully converged with IFRS S1 and IFRS S2. The comment period for the EDs ends on 27 October 2024. The Institute is holding a webinar on the CSRD on Wednesday 25 September which features Orla Carolan from Future Planet and Mike O’Halloran to understand more about the practical challenges of implementing the CSRD. This includes an overview the steps involved in conducting a double materiality assessment and what to do next around data collection, disclosure and reporting. Please register here to attend. In its recent ESRS Perspectives series, Accountancy Europe look at the European Sustainability Disclosure Standards (ESRS) development process. In this publication they have summarised the ESRS processes and listed the various ESRS support materials from the European Commission and EFRAG. This will provide users and preparers a useful insight into how the standards have been developed. Sanctions and anti-money laundering The UK government recently announced the launch the Office of Trade Sanctions Implementation (OTSI), within the Department for Business and Trade, in October 2024.  Click here also for further information. To equip the office with new civil enforcement powers, on 12 September 2024, the UK government passed the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024. Click for the explanatory memorandum. OTSI’s enforcement powers come into effect from 10 October 2024. They will apply to all UK persons including businesses wherever they are in the world and any person including businesses in the UK or the UK territorial sea. The regulations introduce new civil enforcement powers, including the power to impose monetary penalties, for breaches of aircraft, shipping and certain trade sanctions. The regulations also give the Secretary of State the option to publish reports where a breach of sanctions regulations has occurred. Click for statutory guidance on the Trade, aircraft and shipping sanctions, civil enforcement. Please click for the latest UK Financial Intelligence Unit SARs in Action magazine, Issue 27. Articles include a look at the UK cross system strategy to tackle professional enablers (individuals or organisations which are providing professional services that enables criminality). The publication also includes some case studies on suspicious activities reports made to UKFIU and an article on “virtual squatting”. The UK National Economic Crime Centre (NECC) recently published its annual report for 2023-2024. It includes some interesting case studies on the takedown of one of the biggest online marketplaces selling stolen credentials to criminals, an investigation into international Cash-Based Money Laundering controller network and case study on the crackdown on romance fraud. Charities news The NI Charity Commission has enhanced the security of Online Services - documents submitted  must not now include special characters in their names. Communities Minister, Gordon Lyons MLA, has appointed Leanne McCullough as a Commissioner to the Board of the Charity Commission for Northern Ireland with effect from 15 August 2024 to 14 August 2029. Central Bank of Ireland news On 18 September 2024 the Central Bank of Ireland (CBI) issued its latest Quarterly Bulletin for Q3 2024. You can read about the latest trends and the outlook for the Irish Economy, an article on economic policy issues in the Irish housing market and an item about climate change in the financial sector. The focus of the climate change article is on describing the new analytical indicators of carbon emissions for financial institutions resident in Ireland. In September 2024, CBI published a page dedicated to frequently asked questions on Markets in Cryptoassets Regulation (MICAR) divided into sections on authorisations, expectations, policy and virtual asset service providers. Government legislation programme Autumn 2024 The Government has published its legislative programme for Autumn 2024. Read the press release here and the contents of the programme here. Since the last publication in April, we have reported on draft legislation and enactments of relevance to members. For example, the Charities (Amendment) Act 2024 which has been enacted and awaits commencement. Also, the Irish Dept. of Finance published the Finance (Provision of Access to Cash Infrastructure) Bill 2024. The Companies (Corporate Governance Enforcement and Regulatory Provisions) Bill has been published and is currently being considered in the Dail. Heads of Bill of the National Cyber Security Bill were published in July 2024. This legislation is to transpose EU Directive 2022/2555 which all EU member states are required to transpose in full by 17 October 2024. Also, heads of bill have been published for the Miscellaneous Provisions (Registration of Limited Partnerships and Business Names) Bill which bill will reform the Limited Partnerships Act 1907 and the Registration of Business Names Act 1963, strengthening Ireland’s regulatory framework and responding to concerns raised in relation to the transparency of Limited Partnerships. Other draft legislation of note in the Autumn legislative programme is the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill which is heads in preparation, and which is stated to amend the 2010 Act to ensure that Crypto Asset Service Providers are covered by national law in relation to Ireland’s Anti-Money Laundering and Terrorist Financing regime. Also heads in preparation is the Regulation of Artificial Intelligence Bill which will provide for, the designations of Competent Authorities, and penalties, to comply with Ireland’s obligations under Regulation (EU) 2024/1689 laying down harmonised rules on artificial intelligence (Artificial Intelligence Act). Other On 11 September 2024, the Property (Digital Assets etc) Bill was introduced into the UK Parliament. The press release issued on publication of the Property (Digital Assets etc) Bill noted that it will mean that for the first time in British history, digital holdings including cryptocurrency, non-fungible tokens such as digital art, and carbon credits can be considered as personal property under the law. The Bill will also ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law. Click to read the Bill and the explanatory memorandum. Read details of the UK Law Commission’s work on digital assets here. Companies House in the UK has recently posted a blog on “Authorised Corporate Service Providers [ACSPs]: what you need to know”. Readers may recall that identity verification is a core pillar of the Economic Crime and Corporate Transparency Act 2023 under which Act Companies House will be required to verify the identity of anyone who is submitting information to the public register, including those acting on behalf of a company. The blog gives some information on ACSPs including standards to become an ACSP and registering to become an ACSP.   This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

Sep 20, 2024
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Technical Roundup 6 September

Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month. This is the first edition of Technical Roundup since its Summer Break and we have included some updates below which occurred over the Summer. In developments since the last edition Chartered Accountants Ireland were delighted to welcome members who joined on 1 September to the Institute thereby creating the largest professional body on the island of Ireland.  IAASA recently published a consultation paper to obtain stakeholders’ views on its proposal to revise the Ethical Standard for Auditors (Ireland) and the Financial Reporting Council has issued a consultation on revisions to its Guidance on the Going Concern Basis of Accounting and Related Reporting including Solvency and Liquidity Risks. Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) has published several updates over the summer months covering their recent activities, including June 2024 update and podcast July 2024 update and podcast August 2024 update The IASB has published its review of the impairment requirements relating to financial instruments, which indicate that the requirements in IFRS 9 are working as intended and provide useful information to users of financial instruments. The IASB is proposing amendments to its newest standard, IFRS 19 Subsidiaries without Public Accountability Disclosures, which proposes to reduce disclosure requirements for entities applying the standard. The comment period remains open until 27 November 2024. The IASB is proposing narrow-scope amendments to IAS 21 The Effect of Changes in Foreign Exchange Rates. The comment period remains open until 22 November 2024. The IASB is also proposing to add eight illustrative examples to illustrate how companies can apply IFRS Accounting Standards when reporting the effects of climate-related and other uncertainties in their financial statements. The comment period for these proposals remains open until 28 November 2024. The Financial Reporting Council (FRC) has issued a consultation on revisions to its Guidance on the Going Concern Basis of Accounting and Related Reporting, including Solvency and Liquidity Risks The European Financial Reporting Advisory Group (EFRAG) has issued its Annual Review 2023 which includes key developments for 2023 and Q1 of 2024. The FRC has published amendments to the FRS 101 Reduced Disclosure Framework standard. There are minor amendments to the standard including a disclosure exemption from presenting certain comparative information, and a conditional exemption for qualifying entities in respect of certain disclosures about supplier finance arrangements required by IAS 7 Statement of Cash Flows. The FRC has published thematic reviews covering offsetting in financial statements and IFRS 17 first year disclosures. IASB Exposure Drafts On 15th July, the IASB closed the comment period for their exposure draft ED/2024/1 Business Combinations—Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3, IAS 36). While broadly agreeing with the proposals, the Institute made some recommendations for the IASB to consider when finalising their response. EFRAG and the UK Endorsement Board (UKEB) also responded to the consultation with some recommendations. On 7th August, the IASB closed their comment period for their exposure draft ED/2024/3 Contracts for Renewable Electricity- Proposed amendments to IFRS 9 and IFRS 7. The Institute’s Financial Reporting Technical Committee issued a response to this and noted its overall support for the project, with some areas for improvement and clarification noted. EFRAG and the UKEB also responded to the consultation with some recommendations. IFRS 18 educational material IFRS 18 Presentation and Disclosure in Financial Statements will become effective on 1 January 2027. Some recently published educational material in relation to this new standard includes; IAASA’s policy paper, which sets out some matters for preparers to consider when applying the standard EFRAG’s summary reports on their educational sessions held over the Summer The UKEB have held some outreach activities and have also conducted some surveys on the standard Join us for some Free CPD & learn about the upcoming changes to FRS 102 on 11 September In March, the FRC issued amendments to FRS 102 and FRS 105 as part of its second periodic review of the standards. These changes will become effective in 2025 and 2026. In order to raise awareness of the requirements set out in the amended accounting standards, the FRC will be in Dublin on the 11th September for a free, in-person event. Please join us at the event to learn more about the upcoming changes, including significant changes to lease accounting and revenue recognition. Auditing and Assurance IAASA has published a consultation paper on its proposal to revise the Ethical Standard for Auditors (Ireland) and the comment period remains open until 25 October. The proposed effective date for the new standard is for audits of financial statements for periods beginning on or after 15 December 2025. IAASA has issued the July edition of its Standards Newsletter which includes updates on assurance of corporate sustainability reporting in Ireland and international developments. The FRC has published its sixth Annual Enforcement Review (Review) which provides a summary of FRC enforcement activity for the year ending 31 March 2024. The FRC has published its Annual Review of Audit Quality which covers the inspection and supervision results of the Tier 1 audit firms (BDO, Deloitte, EY, Forvis Mazars, KPMG, and PwC), which the FRC defines as the firms with the largest share of the UK PIE market. International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE). IAASB has published new supplemental guidance on auditor reporting and new supplemental guidance which has been added to the existing resources issued.  The IAASB guidance includes videos, webinars, and other guidance. Sustainability On 5 July 2024 Minister for Enterprise, Trade and Employment, Peter Burke TD signed into law the Statutory Instrument giving effect to the provisions of the Corporate Sustainability Reporting Directive (CSRD). This legislation was signed just before the passing of the 18-month period whereby EU Member States had to have the CSRD enacted locally. While Ireland made this deadline, not all European countries did. You can keep track of the status of the CSRD transposition across Europe using Ropes & Gray’s CSRD Transposition Tracker. On 7 August IAASA issued a letter to Audit Committee Chairs highlighting their responsibility for the process of preparing sustainability reports as well as for monitoring the assurance process. It also highlights IAASA’s expectation that compliance with these requirements may significantly impact the annual reporting timelines. On 30 August, EFRAG published its XBRL Taxonomy for ESRS Set 1, which enables the digital tagging of ESRS statements. In addition, EFRAG has published the XBRL Taxonomy for Article 8 disclosures. The digital taxonomies enable the marking up ('tagging') of sustainability reporting in machine-readable XBRL format. Over the Summer, the Global Reporting Initiative (GRI) issued some interesting publications, including; GRI best prepares companies for CSRD reporting rules which answers some questions on what the new European Sustainability Reporting Standards mean for the use of GRI standards. GRI and TNFD make reporting on biodiversity easier which introduces a joint interoperability mapping resource and gives a detailed overview of the alignment between the TNFD disclosure requirements and the GRI standards EFRAG’s ESRS Q&A platform continues to provide a useful source of information regarding the ESRS standards. The platform is regularly updated with new questions and explanations. On 5 July 2024 the European Securities and Markets Authority (ESMA) published: a Final Report on the “Guidelines on Enforcement of Sustainability Information” (GLESI), and a Public Statement on the first application of the European Sustainability Reporting Standards (ESRS). Over the Summer, the EFRAG have released a connectivity project initial paper entitled “Connectivity considerations and boundaries of different Annual Report sections” The Ecodesign for Sustainable Products Regulation establishing a framework for the setting of ecodesign requirements for sustainable products was published on 28 June 2024 and entered into force on 18 July 2024.  It expands the scope of and replaces the current Ecodesign Directive (which applies to the energy efficiency of energy using products). Please click the Dept. of Enterprise Trade and Employment link to find out more about the main features of the legislation which include putting a stop to the destruction of unsold consumer goods and promoting and procuring more sustainable products. Sanctions and anti-money laundering The Internet Organised Crime Threat Assessment (IOCTA) issued its annual assessment in July 2024.  The report highlights relevant trends in crime areas such as cyber-attacks, child sexual exploitation and online and payment fraud schemes. Charities news The Charities (Amendment) Act 2024 was enacted in July 2024 and commencement of the legislation is awaited. Anyone who deals with a charity will benefit from reading Mason Hayes & Curran LLP article which deals with a selection of the new features of the 2024 Act. See in particular a useful paragraph on financial reporting requirements. The link to the Mason Hayes & Curran LLP article is here. Also on the charities front, the Irish Charities Regulator has published a newsletter in recent weeks. Charities Regulator News Issue 29 (newsweaver.com). It contains a link to their Annual Report 2023, a very useful article and checklist for a charity which may be selling a property some information on the new Charities (Amendment) Act 2024 and an article on Charity reserves and why they matter. Dept. of Enterprise Trade and Employment news Increase in Company law thresholds come into force The European Union (Adjustments of Size Criteria for Certain Companies and Groups) Regulations 2024 (S.I. No. 301 of 2024) were signed into law on the 19 June and came into operation on the 1 July 2024. The Regulations transpose delegated Directive 2023/2775/EU . The purpose of the Regulations and the Directive is to adjust company size thresholds in line with 25 per cent inflation, thereby reducing the regulatory and administrative burden on some companies, which would otherwise become subject to audit and additional financial reporting requirements. In October 2023 the Institute, as part of the Consultative Committee of Accountancy Bodies -Ireland responded to the European Commission request for feedback on adjusting SME size criteria for inflation . Please see an Institute news item of June 24, 2024 on Increased size limits for Irish companies signed into law and click for the Dept. of Enterprise Trade and Employment (DETE) announcement referred to in the news item. Please click for a link to the page in the Institute’s technical hub dedicated to details of company law thresholds. Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 Readers may recall a news item in our last edition of round up that this legislation had been passed and readers were given a link to an Institute guide on the company law changes. The Act was commenced in its entirety on 1 July 2024. Draft company/business law legislation has been brought forward by DETE recently Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 The General Scheme of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 was published by DETE in March 2024. Readers can click here for our news item on provisions which might be of interest to members. By way of update readers should note that in July 2024 DETE published the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 (“the Bill”). The Bill includes substantially all the provisions of the General Scheme though it is worth noting that some of the provisions contained in the General Scheme in relation to the Corporate Enforcement Authority (CEA) are not included in the Bill. Click here to see the update on the proposed changes to Irish company law which we published in August 2024. Registration of Limited Partnerships and Business Names Bill (General Scheme) The heads of the General Scheme of the Registration of Limited Partnerships and Business Names Bill 2024 was published in July 2024. The General Scheme is accompanied by a Regulatory Impact Analysis.  The General Scheme proposes to repeal and replace the Limited Partnerships Act 1907 and the Registration of Business Names Act 1963. Subsequently, in August 2024 government approval was secured to commence drafting of the Miscellaneous Provisions (Registration of Limited Partnerships and Business Names) Bill. The proposed Bill would repeal and replace the Limited Partnerships Act 1907 and the Registration of Business Names Act 1963. Both Acts require updating to provide for modern business practices for those engaged in business using a business name or the limited partnership model.  Please click here for an article by law firm Pinsent Masons LLP, an article by law firm Addleshaw Goddard LLP and an article by KPMG Law LLP on the proposals. National Enterprise Hub On 10 July the Minister for Enterprise, Trade and Employment, Peter Burke TD, launched the National Enterprise Hub which brings together information and resources on over 180 government supports.  It is a free service which will make it easier for entrepreneurs to access and avail of grants funding and expert advice across a range of sectors. The hub brings together information and resources on over 180 government supports from 19 different departments and state agencies which can be accessed through the new online hub (www.neh.gov.ie). Please click here for an article by Ogier LLP on the launch of the hub. Pensions Authority The Pensions Authority published 3 publications during the summer which might be of interest. The first is Investment strategy (liquidity risk) guidance for trustees. The next is a link to the launch of the IAPF’s (which represents pension savers)  Cost Transparency Standard (CTS).The third is an information note on the Digital Operational Resilience Act (DORA). Digital resilience - DORA and NIS-2 In August 2024 the Department of the Environment, Climate and Communications published the General Scheme of the National Cyber Security Bill 2024. The Bill, when passed, will implement EU Directive 2022/2555, Network and Information Security Directive known as NIS 2. The directive must be brought into effect by member states by 18 October 2024. When implemented, in-scope entities will have imposed on them a significantly increased cybersecurity preparedness and incident reporting regime. Click to read some further information from the Dept. on the general scheme including the categories of “essential “and “important “entities (which includes for example sectors such as transport, pharmaceutical and healthcare ) and cybersecurity risk management. The three European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) will establish the EU systemic cyber incident coordination framework in the context of the Digital Operational Resilience Act (DORA), that will facilitate an effective financial sector response to a cyber incident that poses a risk to financial stability by strengthening the coordination among financial authorities and other relevant bodies in the European Union. Other On 1 September Chartered Accountants Ireland and CPA Ireland commenced operations as one Institute under Chartered Accountants Ireland. CPA Ireland members, students, staff and services have been incorporated into those of Chartered Accountants Ireland creating the largest professional body on the island of Ireland. On 11 July The Central Bank of Ireland published the independent review of its Fitness and Probity (F&P) regime.  The review was undertaken by Mr Andrea Enria the former Chair of ECB Supervisory Board. The Corporate Enforcement Authority has this week published its September newsletter which provides an overview of the CEA’s activities in recent months. This includes information about the CEA annual report, enforcement activities, company law developments and a reminder about its upcoming annual conference on 17 October 2024. You can sign up here  to receive the CEA newsletter directly to your mailbox.          Readers, in particular employers, may find useful A &L Goodbody thoughts and insights after 18 months of the new whistleblowing regime | A&L Goodbody LLP (algoodbody.com) which was published during the summer. It is written 18 months after Ireland transposed the EU Whistleblowing Directive through the Protected Disclosures (Amendment) Act 2022 (“2022 Act”). It notes, for example, a substantial increase in the number of whistleblowing claims and discusses the question most frequently asked by its international employer clients. This is whether the employer can retain its centralised reporting channel at parent company level with the introduction of the 2022 Act or whether each legal entity in a group must have its own internal reporting channels and procedures. Readers are also reminded of the Institute resources in this area. The Institute pages on protected disclosures on the technical hub have a large volume of information and resources available on this topic. In July 2024, the Irish Dept. of Finance published the Finance (Provision of Access to Cash Infrastructure) Bill 2024. The Bill aims to ensure that sufficient and effective access to cash is available in Ireland, and that any further evolution of the cash infrastructure will be managed in a fair, orderly, transparent and equitable manner for all stakeholders. Click here for the Dept. press release and text of the draft legislation. The text of the EU Artificial Intelligence (AI) Act was published during the summer. You can click for the text of Regulation 2024/1689. The AI Act became law on 1 August 2024 and the various parts of the legislation come into effect in the coming years. Please click the link to access a European Commission page on the AI Act. IFAC, the International Federation of Accountants has published a Professional Accountancy Organisation (PAO) Strategy Planning Toolkit which is designed to equip PAOs to develop their strategic plans and develop their operating models.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

Sep 06, 2024
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Technical Roundup 21 June

Welcome to the latest edition of Technical Roundup. In developments since the last edition, the International Accounting Standards Board (IASB) has issued amendments to IFRS 9 Financial Instruments which seek to address diversity in accounting practice by making the requirements more understandable and consistent.  Accountancy Europe has issued a series of publications summarising the ESRS’ provisions and their views on ESRS aspects that merit further guidance and clarification. Read more on these and other developments that may be of interest to members below. Financial Reporting The IFRS Foundation’s hybrid annual conference will be held in London on 24–25 June 2024.  Delegates will hear from a range of experts in financial reporting, accounting and sustainability. The International Accounting Standards Board (IASB) has issued amendments to IFRS 9 Financial Instruments which seek to address diversity in accounting practice by making the requirements more understandable and consistent. The UK Endorsement Board has issued its draft comment letter in response to the IASB’s Exposure Draft on Business Combinations – Disclosures, Goodwill and Impairment. Comments from stakeholders are welcome until 1 July 2024. The UK Endorsement Board has also issued its draft comment letter in response to the IASB’s Exposure Draft on Contracts for Renewable Electricity. Comments are welcome until 19 July 2024. The IASB has issued a call for papers for the 2025 IASB Research Forum. The deadline for submissions is 31 March 2025. The European Financial Reporting Advisory Group (EFRAG) has issued its draft comment letter in response to the IASB’s Exposure Draft on Contracts for Renewable Electricity. Comments are welcome until 15 July 2024. The IASB has agreed to finalise revisions to IFRS Practice Statement 1 Management Commentary by making targeted refinements to its proposals set out in the Exposure Draft Management Commentary. The IASB expect to issue the revised statement in the first half of 2025. IFRIC (the IFRS Interpretations Committee) has issued its June 2024 update, which summarises the decisions reached at its recent public meeting. Auditing and Assurance Following public consultation to obtain stakeholders’ views earlier this year IAASA has published its Feedback Paper on its Consultation on the Adoption of a Sustainability Assurance Standard in Ireland.  IAASA intends to adopt the International Standard on Assurance Engagements 3000 Revised (ISAE 3000), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. Adoption will take place when the European Corporate Sustainability Reporting Directive (CSRD) is transposed into Irish law giving IAASA the statutory power to adopt sustainability assurance standards in Ireland.  It is not intended to insert any additions Irish-specific requirements in IASAE 300 beyond any required to ensure that it applies to sustainability assurance engagements in Ireland and that sustainability assurance providers are subject to appropriate ethical and quality management requirements.    IAASA invites potential members and advisors to enquiry/investigation committees IAASA undertakes statutory enquiries and investigations under the Companies Act 2014 and its own regulations. The preliminary stages are undertaken by the executive. From time to time, IAASA may need to establish committees to carry out full enquiries/investigations, where the matter cannot be settled by mutual agreement before that stage. Membership of these committees, including chairpersons, is selected from a panel of eligible appointees. IAASA is seeking to update this panel, and expressions are particularly welcome from members of prescribed accountancy bodies. In addition, these committees will retain their own legal advisor to act on the committees’ behalf. IAASA is also seeking to establish a panel of suitably qualified individuals for this role. The closing date for receipt of expressions of interest is 15 July 2024. Please see IAASA’s website for more information. Sustainability IAASA have published a Feedback Paper on its Consultation on the Adoption of a Sustainability Assurance Standard in Ireland Accountancy Europe has issued a series of publications summarising the ESRS’ provisions and their views on ESRS aspects that merit further guidance and clarification. They have summarised the existing ESRS’ provisions on these concepts and where applicable, incorporated EFRAG’s guidelines. So far published in this series are Materiality Assessment and Value Chain with more to follow in due course. Accountancy Europe has also published its June 2024 Sustainability update and its June 2024 Newsletter. The International Sustainability Standards Board (ISSB) has issued its June 2024 Update. This includes a summary of their recent meeting on 12 June in Frankfurt. The ISSB has also issued its June 2024 Podcast. The European Financial Reporting Advisory Group (EFRAG) have finalised the first three Implementation Guidance documents to assist preparers and other relevant stakeholders in applying the European Sustainability Reporting Standards. The Implementation Guidance documents cover the following topics; Materiality Assessment Value Chain Detailed ERS Datapoints The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published a joint Opinion on the assessment of the Sustainable Finance Disclosure Regulation (SFDR). The ESAs call for a coherent sustainable finance framework that caters for both the green transition and enhanced consumer protection, taking into account the lessons learned from the functioning of the SFDR. EFRAG and the Taskforce on Nature-related Financial Disclosures (TNFD) have jointly published a mapping of the correspondence between the European Sustainability Reporting Standards (ESRS) and the TNFD's recommended disclosures and metrics. This was prepared to assist companies in understanding the commonalities between the ESRS and the TNFD and the mapping details the disclosures and core metrics recommended by the TNFD and required under the ESRS.  This assessment highlights that all 14 TNFD recommended disclosures are reflected in the ESRS.  Click here for an article from IDA Ireland on Sustainability and Finance: How Ireland meets the industry’s emerging skills need. Sanctions and anti-money laundering Click here to read some information on the ending of an exemption contained in the EU ban on provision of accounting services to Russia. The exemption was intended for the exclusive use of Russian entities which are subsidiaries of EU companies and companies established in certain other allied jurisdictions. The exemption expires on 20 June 2024. The AML Regulation (the single rule book), the AML Directive and the regulation establishing AMLA were published in the official journal on 19 June 2024. The texts will enter into force 20 days from publication and will fully start applying after 3 years. New and forthcoming legislation Further to our item in the last edition of round up, click for an information guide on company law changes to be effected upon commencement of the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024. Dept. of Enterprise Trade & Employment (DETE) news The Department of Enterprise, Trade and Employment is hosting the second annual Trade Horizons Conference in Dublin Castle on Thursday, 4 July. The theme for Trade Horizons 2024 is 'Trade for a Sustainable Future', exploring how policymakers and businesses can work together to advance action on the drive for net zero carbon emissions.  The Minister for Finance and DETE recently published a series of Artificial Intelligence: Friend or Foe’ reports. The three reports are entitled “Artificial Intelligence: Friend or Foe? Summary and Public Policy Considerations’, ‘Artificial Intelligence: Friend or Foe? A Review of How AI Could Impact Ireland’s Economy’ and ‘Artificial Intelligence: Friend or Foe? An Analysis of How AI Could Impact Ireland’s Labour Market’. Readers can read the press release here and get details of the reports here. DETE has also published a pages on Sustainability is good for business which provides lots of useful links including those to training and grants available. Other The Corporate Enforcement Authority (CEA) has published its first annual report covering a period from July 2022 to December 2023. Click here for the CEA press statement. The annual report provides a comprehensive account of the steps taken to establish the CEA's presence amongst its stakeholders, and of the work undertaken to establish the organisation's operational capability. The Report includes 17 case studies that illustrate the breadth of the CEA's impact and demonstrate a considered and graduated approach towards the deployment of the CEA’s enforcement powers. Case studies range from use of incorrect registered office address to incorrectly claiming audit and group exemptions and breach of director’s loan provisions. There is also a case study on supervision of the implementation of the terms of a SCARP rescue plan. On SCARP generally the annual report writes that a process advisor must submit their final report, that is, after developing a rescue plan, to the CEA. Unlike auditors’ indictable offence reports, which by their nature identify potential offences, process advisors’ reports are submitted to the CEA for information on the rescue process and plan. If a report indicates potential wrongdoing or other issues, the CEA can investigate as considered necessary or appropriate. The CEA wrote that it received 51 reports in the period and each report is examined. In Central Bank of Ireland (CBI) news, CBI recently published its second Quarterly Bulletin of 2024. You can access details here. CBI Director of Consumer Protection, Colm Kincaid, spoke on the Future of Customer Engagement and Banking Channels at the June BPFI National Banking Conference. In June 2024 CBI issued its latest Insurance newsletter which includes three articles which may be of interest. One is on the Individual Accountability Framework, one on Double Materiality - Climate Risk Guidance and the CSRD, and one on getting ready for DORA. Accountancy Europe has issued its June 2024 SME update. Technical Roundup is taking a break for the summer and the next Roundup will be issued on Friday 6 September. Any updates during this period will be published on the technical hub on the Institute's website.               This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

Jun 21, 2024
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Technical Roundup 7 June 2024

Welcome to the latest edition of Technical Roundup. In developments since the last edition, IAASA has published its 2023 Annual Audit Programme and Activity Report which gives a summary of the activities performed during 2023 and regulatory engagement work proposed for 2024.  The Global Reporting Initiative (GRI) has published ‘CSRD Essentials - The definitive guide to the EU Corporate Sustainability Reporting Directive’ which simplifies the key aspects of the CSRD and how the new reporting requirements will operate. 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 updated its Endorsement Status Report. This report now reflects the publication of IFRS 19 Subsidiaries without public accountability as well as amendments to IAS 7 and IFRS 7 relating to Supplier Finance Arrangements. The International Accounting Standards Board (IASB) and EFRAG, along with various other bodies will hold some webinars to introduce IFRS 18 for corporate entities and financial institutions on 7th and 11th June. The IASB has issued its May 2024 update and podcast. The IASB has issued some narrow scope amendments to the classification and measurement requirements in IFRS 9 Financial Instruments. These are intended to address diversity in accounting practice by making the requirements more understandable and consistent. ESMA, the European Securities and Markets Authority, has updated some Q&As on its website. The IASB has released a webcast discussing the changes proposed in its recently released exposure draft relating to Contracts for Renewable Energy. Auditing and Assurance Technical Alert 02/2024 – Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive. TA 02 2024 has been issued to provide assistance to members when drafting engagement letters in respect to limited assurance engagements under the Corporate Sustainability Reporting Directive (“CSRD”) which has yet to be transposed into Irish legislation. Accountancy Europe has published its May 2024 Audit Policy Update. The International Ethics Standards Board for Accountants (IESBA) has released its 2023 Annual Report, Respecting the Past, Planning for the Future. 2023 Annual Audit Programme and Activity Report IAASA has published its 2023 Annual Audit Programme and Activity Report which gives a summary of the activities performed during 2023 and regulatory engagement work proposed for 2024. Anti–money laundering and sanctions The Home office in the UK has recently issued the Economic Crime and Corporate Transparency Act 2023: progress report. This is a report on the first 6 months of implementation and operation of the Economic Crime and Corporate Transparency Act 2023. It gives a useful summary of statutory instruments laid to date and the further regulations planned before the summer. (These plans have probably been affected by the recent calling of a general election in the UK).  Click here to access the report. On 24 April 2024 the European Union adopted a directive to harmonise criminal offences for violation of EU sanctions (the “Directive”).  The Directive was introduced to limit sanctions circumvention and to tighten enforcement and provides a common definition of what constitutes a violation of EU sanctions and provides for penalties for the violation of European Union restrictive measures. Please click here for a recent Institute news item on the Directive. Deputy Governor of the Central Bank of Ireland Derville Rowland spoke last month at the European Anti-Financial Crime Summit about Setting up the new EU Anti-Money Laundering Authority for success. You can read her speech here. Insolvency The Institute recently hosted a webinar on the Small Companies Administrative Rescue Process (SCARP) - Practical Issues. This discussion with David Swinburne and Philip Maher of Mazars included how to prepare for a SCARP, what to look out for and key matters to be aware of when considering the process. There was also discussion around some practical issues including how SCARP is working in practice, dealing with creditors and excludable creditors.  The recording is available here.   Sustainability The Financial Reporting Council has welcomes the appointment of Sally Duckworth as Chair of the new UK Sustainability Disclosure Technical Advisory Committee (TAC), for which it will act as secretariat. The Global Reporting Initiative (GRI) has published “CSRD Essentials- The definitive guide to the EU Corporate Sustainability Reporting Directive” which simplifies the key aspects of the CSRD and how the new reporting requirements will operate. The GRI has also published an article explaining the new naming system of the GRI standards. The GRI and International Sustainability Standards Board (ISSB) have announced that the two organisations will work together to optimise how their sustainability standards can be used together. EFRAG and the ISSB recently held a joint event entitled “Unlocking Synergy – Interoperability Guidance on IFRS Sustainability Disclosure Standards and ESRS”. A recording of the event can be viewed here. EFRAG has published a batch of 44 new explanations which are now included on its ESRS Q&A Platform. These Q&As are intended to assist stakeholders in the implementation of the ESRS standards. The ISSB has recently announced that jurisdictions “representing over half the global economy by gross domestic product (GDP) have announced steps to use the International Sustainability Standards Board’s (ISSB) Standards or to fully align their sustainability disclosure standards with those of the ISSB”. The ISSB has issued its May 2024 Update and Podcast. The Institute of Chartered Accountants of Scotland (ICAS) has published “Materiality Assessments in Corporate Sustainability and Financial Reporting” which discusses the different assessments of materiality within sustainability and financial reporting. The Global Accounting Alliance  (GAA) has published a report into recent workshops held on corporate natural capital accounting. The report highlights the importance of corporate natural capital accounting (CNCA) in helping businesses build resilience and value through nature-positive action and how accountants are well-placed to help drive uptake of CNCA across the market. Accountancy Europe, along with the American Chamber of Commerce to the European Union, CFE Tax Advisers Europe and Ecommerce Europe have called on the European Commission to provide further guidance to Member States on applying the Vat Direction on charitable donations. The purpose of this is to alleviate concerns about VAT avoidance and to facilitate corporate donations across the EU. Accountancy Europe has published its May 2024 sustainability update. The IFRS Foundation has published two new webcasts to help explain the International Sustainability Standards Board’s (ISSB) disclosure requirements related to the current and anticipated effects of sustainability-related risks and opportunities on a company’s financial position, financial performance and cash flows. New and forthcoming legislation Company law changes The Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024 (the 2024 Act) was enacted on 9 May 2024. The commencement date of the 2024 Act has yet to be confirmed. While the bulk of the provisions amend employment legislation and establish an employment law review group, the 2024 Act also makes some amendments to the Companies Act 2014. A summary of the provisions relating to amendment of company law will be available from the Institute shortly. Other legislation The European Council has identified main priorities for the next legislative cycle and in doing so ensures the EU digital policy that will be developed while the Council conclusions aim to address both the challenges and opportunities of the digital sphere. Dept. of Enterprise Trade & Employment (DETE) news The Dept. of Enterprise Trade & Employment recently published the Second Update Report on the White Paper on Enterprise Implementation Plan 2023-2024. This Report details the work done in pursuit of priority DETE policy objectives such as Integrating Net Zero and Carbon Commitments and placing digital transformation at the heart of enterprise policy. You can access a copy of the report here. On May 15, 2024, the Irish Government announced a new business support package worth up to €150 million, aimed at bolstering SMEs which is designed to reduce costs, foster innovation, and ensure long-term sustainability for Irish businesses. The Department of Enterprise, Trade and Employment is inviting submissions to a public consultation on the implementation of the EU Artificial Intelligence (AI) Act, which was formally adopted by the EU on 21 May 2024 and is expected to enter into force in June 2024. This consultation is intended to inform Ireland’s approach to implementing the Act and, specifically in relation to the configuration of national competent authorities required for implementation. All EU Directives transposed by the Department of Enterprise, Trade and Employment between 2012 and 2024 have been published as a list in pdf format on their website for information. Readers are reminded to subscribe to the Department of Enterprise Trade and Employment Enterprise newsletter which DETE issues periodically and is a good source of information on news within the Department. You can subscribe to the newsletter here.   Other The Data Protection Commission (“DPC”) has published its 2023 annual report which highlights its workload and regulatory accomplishments over the last year. The Central Bank has published their Annual Report and Performance Statement for 2023. The Annual Report includes describes the Central Bank’s work and financial results for last year as well as their priorities for the current year.  The Irish Charities Regulator has now published its report on Ireland’s charity sector from 2019 to 2022, an analysis of data from annual reports submitted to it. The report provides insights for example into changes to charity income, expenditure and employment. You can read more here in the report. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

Jun 07, 2024
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Technical Roundup 17 May 2024

Welcome to the latest edition of Technical Roundup. In developments since our last edition, the Central Bank of Ireland has recently updated its page which provides information on the impact of the Markets in Crypto Assets Regulation (MiCAR) on Virtual Asset Services Providers. MiCAR will become applicable for Crypto Asset Service Providers (CASPs) from 30 December 2024. The International Accounting Standards Board has issued a new accounting standard IFRS 19 Subsidiaries without Public Accountability: Disclosures. The new standard will permit eligible entities to use IFRS Accounting Standards with reduced disclosures. Read more on these and other developments that may be of interest to members below. Financial Reporting Chartered Accountants Ireland are hosting a webinar on 27th June in Chartered Accountants House with the Financial Reporting Council (FRC). During this event, the FRC will discuss the upcoming changes to FRS 102 and how they will impact accountants in Ireland. Please join us for this free, in-person event. EFRAG, the European Financial Reporting Advisory Group has issued its April 2024 update which summarises the public technical discussions and decisions taken in the last month. The FRC hosted a webinar on 15th May to outline the recent revisions to FRS 102 and FRS 105 as part of the recently completed periodic review. The International Accounting Standards Board (IASB) has published an Exposure Draft which proposes narrow-scope amendments relating to renewable electricity contracts. The amendments aim to ensure that financial statements more faithfully reflect the effects that renewable electricity contracts have on a company. The Exposure Draft remains open for public comment until 7 August 2024. The IASB has issued a new accounting standard, IFRS 19 Subsidiaries without Public Accountability: Disclosures. The new standard will permit eligible entities to use IFRS Accounting Standards with reduced disclosures. This is intended to reduce the costs of preparing financial statements for eligible entities. The IASB has released a series of webinars to raise awareness on their package of proposals contained in their Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment which remains open for public comment until 15 July 2024. The UK Endorsement Board has called for more debate on the need for comprehensive revisions to the accounting and reporting of intangible assets. In recognition of this, it has published a report on its research of intangible reporting in the UK as well as the findings from a survey of users of financial statements. In the UK, the Department of Business & Trade has issued a consultation on two proposals aimed at reducing the burden of reporting on medium-sized companies. This is part of the government initiative to legislate on a series of non-financial reporting measures following a commitment to consult on further measures to reduce regulatory burdens for medium-sized companies. These proposals are (1) Uplifting the employee threshold for medium-sized companies from no more than 250 to 500 employees and (2) Exempting medium-sized companies from producing a strategic report (including companies that would be medium-sized except for the fact that they are a member of an ineligible group). The consultation will close on Thursday 27 June.   Auditing and Assurance Chartered Accountants Ireland have responded to the IESBA Exposure Draft: Using the Work of an External Expert and also the IESBA consultation on the Code of Ethics. Accountancy Europe have also responded to IESBA’s Exposure Draft on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and ethics standards for sustainability reporting. Anti–money laundering and sanctions The Central Bank of Ireland has recently updated its page which provides information on the impact of the Markets in Crypto Assets Regulation (MiCAR) on Virtual Asset Services Providers. MiCAR will become applicable for Crypto Asset Service Providers (CASPs) from 30 December 2024. After this date, any firms seeking to establish themselves in Ireland to offer any CASP services will firstly need to be authorised by the Central Bank of Ireland. Under the existing Virtual Asset Services Providers regime, introduced in April 2021, firms seeking to provide any VASP activities are required to be registered by the Central Bank as a VASP prior to the commencement of operations. The page also gives details of a transitional period which will apply for up to 12 months. You can read more details about the changes here. Companies House UK has recently updated guidance in relation to its “Register of Overseas Entities: Approach to enforcement” which explains how it will use its enforcement powers in relation to the Register of Overseas Entities. Readers can find out more about it here. Insolvency David Swinburne and Philip Maher of Mazars along with Laura-Michelle Moore from Chartered Accountants Ireland will be speaking at a webinar about the practical issues of the Small Companies Administrative Rescue Process (SCARP) on 29 May at 10am. You can register here for this free webinar.   Sustainability In its recent article, the Global Reporting Initiative (GRI) has highlighted the results of its recent research which found that 26% of the 1,000 largest public companies worldwide are voluntarily using the GRI tax standard in their sustainability report. IAASA recently undertook a desktop examination of the EU Taxonomy Regulation disclosures of a sample of issuers’ financial statements and has now published a Paper setting out its findings. The GRI has produced CSRD Essentials which outlines key aspects of the CSRD and is the result of joint working between GRI, Pascal Durand, Member of the European Parliament and CSRD Rapporteur, and the Lefebvre – Sarrut Group. It consists of 11 core briefings and is definitely worth a read for anyone looking to get a good overview of the CSRD. The International Sustainability Standards Board (ISSB) has released a webcast introducing the ISSB Taxonomy. Recent case law -franchises Readers involved with franchisors, franchisees and franchise agreements will be interested in a recent UK High Court decision which demonstrates the importance for franchisors of giving prior consideration to exit strategies from agreements. This is to minimize the risk of being locked into long-term franchise agreements which are no longer commercially viable for business. Please click here for an article and commentary by A&L Goodbody Solicitors on the case entitled Pre-planning and active management of longstanding franchise agreements | A&L Goodbody LLP (algoodbody.com). A &L Goodbody note that while the case was in the UK High Court, it is likely to be persuasive in this jurisdiction, particularly in the current absence of similar caselaw in Ireland and that it is understood that the decision is under appeal. Other The Charities Regulator has recently issued its latest e-zine newsletter. Its news includes information on managing conflicts of interest and details on a stakeholder forum which met in April. You can access the newsletter here. In other Charities news, the Charities Regulator is hosting a webinar on 28 May next at 12.30 as it is publishing an analysis of the Annual Reports submitted by charities to the Charities Regulator between 2019 and 2022.The webinar will be hosted by Research Manager, Mandy Osborne, and the session will give attendees up-to-date information on changes across the charity sector. The webinar will provide insights into charity income, expenditure, employment and volunteering, and how organisations have weathered COVID-19. Please click here for more information and how to register. The European Securities and Markets Authority has published its April 2024 newsletter which you can access here. It includes items on crypto assets market structures and EU relevance and a number of items on Digital Operational Resilience Act (DORA). For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

May 17, 2024
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Technical roundup

Welcome to the latest edition of Technical roundup. In developments since the last edition, David Swinburne and Hilary Larkin of Mazars along with Laura-Michelle Moore from Chartered Accountants Ireland will be speaking at a webinar about the practical issues of the Small Companies Administrative Rescue Process (SCARP) on 29 May at 10:00. The European Parliament has recently adopted a package of laws strengthening the EU’s toolkit to fight money-laundering and terrorist financing. The Anti-Money Laundering and Countering the Financing of Terrorism package consists of a directive and two regulations. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) is hosting a webinar on its recent revisions to FRS 102 on Wednesday, 15 May 2024 11:00-12:00. The International Accounting Standards Board (IASB) has announced that it is launching a comprehensive review of accounting for intangibles. This project will assess whether the requirements of IAS 38 Intangible Assets remain relevant and will be explored and discussed by the IASB in the coming months. The IASB has announced that it expects to issue its next Accounting Standard, IFRS 19 Subsidiaries without Public Accountability: Disclosures, on 9 May 2024. The IASB has issued its April 2024 update which highlights decisions taken and projects affected during the month. It has also published its April 2024 podcast. The IFRS Foundation has also issued its April 2024 monthly news summary. The IASB has announced that it expects to publish the Exposure Draft Contracts for Renewable Electricity on 8 May 2024. Following on from the recent release of IFRS 18 Presentation and Disclosure in Financial Statements, the IASB are holding a series of webinars to help stakeholders gain a better understanding of the new requirements. The UK Endorsement Board has released a webcast which discusses IFRS 18. The IFRS Foundation has published a video explaining what the IFRS Digital Taxonomies are and how they enable information to be prepared in a machine readable format. The IFRS Foundation has published its 10th Compendium of Agenda Decisions by the IFRS Interpretations Committee. This covers the 6 month period to April 2024. The IFRS Foundation has published its 2023 Annual Report for the year ended 31 December 2023. EFRAG, the European Financial Reporting Advisory Group has published its draft comment letter on the IASB’s Exposure Draft ED/2024/03 Business Combinations—Disclosures, Goodwill and Impairment (Proposed amendments to IFRS 3, IAS 36). The draft remains open for public comment until 28 June 2024. Auditing and Assurance IAASA has published its annual ‘Profile of the Profession’ for 2023 containing statistical data provided by the six Prescribed Accountancy Bodies (‘PABs’). The report presents an overview of the PABs’ members and students and includes statistics about their regulatory and monitoring activities. A video summary is available here. Anti–money laundering and sanctions The European Parliament has recently adopted a package of laws strengthening the EU’s toolkit to fight money-laundering and terrorist financing. The Anti-Money Laundering and Countering the Financing of Terrorism package consists of a directive and two regulations. These are the sixth Anti-Money Laundering directive, the EU “single rulebook” regulation and the Anti-Money Laundering Authority (AMLA) regulation. The laws must be formally adopted by the European Council before publication in the EU’s Official Journal. Click here for a press release from the European Parliament on the package and here to access the Institute’s dedicated pages on anti-money laundering which have recently been updated to include a page dedicated to European Union developments. In the UK the Office of Financial Sanctions Implementation (OFSI) has recently launched a UK Financial Sanctions FAQs webpage. Ninety one questions and answers are listed including featured FAQs “Are UK entities’ subsidiaries located outside the UK expected to comply with UK sanctions? “and “How do the fees and expenses caps apply? Is it per DP (i.e., for all a DP’s matters across all law firms) or is it per law firm being instructed by a DP?”. The UK Financial Conduct Authority is consulting on updates to its Financial Crime Guide. The updates relate to sanctions, proliferation financing and transaction monitoring. It is also proposing to add references to cryptoassets and the Consumer Duty, along with consequential changes throughout the Guide. The consultation closes on 27 June 2024. Insolvency David Swinburne and Hilary Larkin of Mazars along with Laura-Michelle Moore from Chartered Accountants Ireland will be speaking at a webinar about the practical issues of the Small Companies Administrative Rescue Process (SCARP) on 29 May at 10am. You can register here for this free webinar. Sustainability Accountancy Europe has welcomed the final approval of the Corporate Sustainability Due Diligence Directive (CSDDD) by the European Parliament (EP) and the Council. Member States can now start transposing the Directive into national laws in 2024. Accountancy Europe has also issued its April 2024 Sustainability Update. The Department of Enterprise, Trade and Employment (DETE) is consulting on one of the member state options of the CSRD to introduce Independent Assurance Services Providers (IASPs) pursuant to Article 34(4) of Directive 2013/34/EU (‘Accounting Directive’) inserted by Directive 2022/2464/EU as regards Corporate Sustainability Reporting (‘CSRD’). The deadline for responding to the consultation is 19 July 2024. Ahead of the anti-greenwashing rule coming into force on 31 May, the Financial Conduct Authority (FCA) is supporting industry with guidance to help them meet the standard.  It is also consulting on extending to portfolio managers the requirements on how sustainable investments are labelled and explained. The International Sustainability Standards Board (ISSB) has announced that it will commence projects to research disclosure about risks and opportunities associated with biodiversity and human capital. The ISSB has issued its April 2024 Update and Podcast. The inaugural IFRS Sustainability Disclosure Taxonomy was published on 30 April. The Taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures and their accompanying guidance. The IFRS Foundation and EFRAG have jointly published guidance material which illustrates the level of alignment achieved between the ISSB’s Standards (IFRS S1 and S2) and the European Sustainability Reporting Standards. The International Federation of Accountants (IFAC) has proposed changes to the International Education Standards to improve the training offering for aspiring professional accountants. Central Bank of Ireland The Central Bank of Ireland has completed and published the outcome of a review of the supports that banks, retail credit firms and credit servicing firms provide for borrowers in or facing early arrears. Click here for the press release and here for the Dear CEO letter from the Head of Consumer protection division. Director of Consumer Protection, Colm Kincaid said: “The Central Bank has carried out this review to ensure the financial system is supporting borrowers in or facing early arrears on their mortgage. It comes as we see an increased number of borrowers falling into early arrears, as increased costs of living impact on borrowers’ finances.” New legislation A regulation which transposes the Representative Actions Directive (RA Directive) has recently been signed into Irish law. The RA Directive ensures that groups of consumers can protect their collective interests for an infringement of their consumer rights both in here in Ireland and in the EU, through a representative action. Click here for a DETE press release which provides more information on the RA Directive and the transposing regulation. On the drafting side, the Government recently published its legislative programme for Summer 2024. Read the press release here and the contents of the programme here. The Access to Cash Bill, Companies (Corporate Governance Enforcement and Regulatory Provisions) Bill and a National Cyber Security Bill are listed for priority drafting. The Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill is listed as heads in preparation and the Charities (Amendment) Bill 2023 is on the Dail and Seanad Order Paper. Other The European Securities and Markets Authority (ESMA) has responded to the European Commission request on amendments to the European long-term investment fund (ELTIF) Technical Standards (RTS). In the letter ESMA suggests that there should be a limited number of changes to find the right balance between protecting retail investors and contributing to the capital market union objectives.    Readers are reminded that the Corporate Enforcement Authority’s April newsletter is now available. Highlights include a focus on directors’ disqualification and company law developments. You can read more details here and click to be brought to CEA website where you can sign up for the newsletter. Click here for the European Commission’s news finance hub where readers can subscribe for the newsletter and keep up to date with all the latest EU finance news including digital & sustainable finance, banking, anti-money laundering and sanctions. You can for example read an article on the new AML rules (reported on above) which notes that they will change the EU’s financial crime prevention landscape for good but asks and provides some answers to what will change in practice. On 24 April EU and Member States representatives celebrated 20 years of EU enlargement. President von der Leyen highlighted the many benefits that EU membership brought to the then-new Member States while also underlining the many advantages that the Union itself drew from this enlargement. The Financial Conduct Authority in the UK has issued an Artificial Intelligence (AI) update to outline its approach to AI following the Government’s publication of its pro-innovation strategy on AI. AI The update outlines the FCA’s role and objectives, it’s work so far, its existing approach and its plans for the next 12 months. You can read more about it here. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

May 03, 2024
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Technical Roundup 19 April 2024

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

Apr 19, 2024
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Technical Roundup 5 April

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

Apr 05, 2024
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Technical Roundup 15 March

Welcome to the latest edition of Technical Roundup. In developments since the last edition, the Financial Conduct Authority in the UK recently issued a ‘Dear CEO’ letter detailing action needed in response to common control failings identified in anti-money laundering frameworks. The International Accounting Standards Board published its Exposure Draft Business Combinations-Disclosures, Goodwill and Impairment on 14 March 2024. The ED is open for public comment until 15 July 2024. 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 issued its February 2024 update. This summarises public technical discussions held and decisions taken in the month. The International Accounting Standards Board (IASB) has issued a call for fieldwork participants to explore the potential effects of the tentative agenda decisions. These tentative decisions relate to the entities who would be subject to the expected credit loss model arising from proposed changes to the IFRS for SMEs Accounting Standard. The IASB has published its next Exposure Draft Business Combinations-Disclosures, Goodwill and Impairment on 14 March 2024. This is open for public comment until 15 July 2024. The IFRS Foundation has issued its February 2024 monthly news summary, which covers news and events over the past month. Following the publication of the revised UK Corporate Governance Code earlier this year the FRC updated the guidance and for those stakeholders who wish to download or print copies of the guidance in full starting from 6 March 2024, any future updates will be made on the first Wednesday of the month. A link to the updates log is on the UK Corporate Governance page on the FRC website. The Pre-Emption Group (PEG) arm of the Financial Reporting Council has published its first report monitoring the use of its updated Statement of Principles on the disapplication of pre-emption rights for UK listed companies which give existing shareholders rights of a company priority to participate in future share issues thereby protecting their ownership stakes. Auditing IAASA has published its 2023 quality assurance review reports in respect of seven firms that perform statutory audits of public-interest entities (PIEs) in Ireland. The reports summarise IAASA’s inspection of each firm’s implementation of the International Standard on Quality Management (Ireland) 1 (ISQM 1) which was effective for the first time during this period. IAASA undertook 31 (2022: 35) inspections of audit files, 24 were graded as good audits, (2022: 31) 7 required improvements, (2022: 4) No audit files inspected required significant improvement. The 2023 reports can be accessed here. Anti–money laundering and sanctions The Financial Conduct Authority (FCA) in the UK recently issued a ‘Dear CEO’ letter detailing action needed in response to common control failings identified in anti-money laundering frameworks. The letter was issued to “Annex 1 Financial Institutions “. These entities carry out activities such as financial leasing and providing payment services. Click here for full details of Annex 1 activities. The letter listed common control failings including for example lack of resources for financial crime and inadequate training. Readers can click here for full details of the dear CEO letter. Sustainability EFRAG has announced the addition of three new entities to the “Friends of EFRAG – Sustainability Reporting” community. Greenomy, osapiens and SISB have joined the group, demonstrating their commitment to sustainability reporting and supporting EFRAG’s mission. Accountancy Europe has issued its March Sustainability Update. Central Bank of Ireland The Central Bank of Ireland (CBI) is conducting a comprehensive review of the Consumer Protection Code 2012 (the Code). It has launched its Consultation Paper which is an opportunity for stakeholders to provide feedback on how CBI is proposing to update the Code. The purpose of the review is to deliver an updated and modernised Consumer Protection Code which is centred around firms securing customers’ interests which CBI says is the key to delivering positive consumer outcomes. You can read more about the review here and the consultation paper here. The consultation is open for feedback for three months until 7 June 2024.  CBI will then consider submissions received and publish the final revised Code in 2025 alongside a feedback statement. CBI also recently launched its first quarterly bulletin of 2024 which you can read here. The Governor of the Central Bank wrote to the Minister for Finance in January 2024 outlining his financial regulation priorities for 2024 and readers can access the letter here. Readers may also find some of the topics in CBI Regulatory & Supervisory Outlook 2024 published recently of interest. The outlook gives an overview of risk themes and risk areas including climate and other environmental –related risks and financial crime risks. It outlines supervisory priorities and under the heading “legal and regulatory” provides a summary of key regulatory initiatives for 2024.It considers various sectors including the credit union sector and the insurance and re-insurance sector. There is also a section on a supervisory perspective on artificial intelligence and a spotlight on financial crime. Other news The Charities Regulator reported in its recent newsletter that it has removed four charities from the Register of Charities for failing to file an annual report despite being required by law to do so. The Regulator also initiated prosecution actions against a further eight charities that have failed to file at least one annual report with the Regulator. These organisations are among over 1,700 charities contacted by the Charities Regulator in a targeted compliance programme to improve compliance with annual reporting obligations. Please click here to read the full article in the Charities Regulators newsletter. Minister for Enterprise Trade and Employment, Simon Coveney TD, has launched Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy.  The strategy’s vision is to build a vibrant and impactful new offshore wind energy (OWE) sector by the end of this decade and hopes to create up to 5,000 jobs in this area. The Business Law Committee of the Law Society has published an in-depth article on revised Central Bank of Ireland (CBI) Administrative Sanctions Procedure (ASP) Guidelines. The FRC has updated the guidance on the revised UK Corporate Governance Code. It is now a live document containing links to relevant publications and this will allow it to be reviewed to ensure it remains accurate and up-to-date. As we approach the European Parliament elections, which are due to take place across Europe in June, Accountancy Europe have announced an upcoming campaign which intends to promote these elections. The first event entitled “Democracy in action: Discussing Inflation and the Sustainability Agenda” will take place on April 16. The Financial Conduct Authority (FCA) has announced that it will investigate the use of personal guarantees in certain UK entities. An Garda Síochána, Garda National Cyber Crime Bureau (AGS) has recently produced a booklet Cybercrime Risks and Prevention Tips which it says aims to enhance awareness of this type of crime as AGS sees more people using the online world as their primary means of interacting. Minister for Enterprise, Trade and Employment, Simon Coveney TD, and Minister for Children, Equality, Disability, Integration and Youth, Roderic O’Gorman TD, have brought the right to request remote working arrangements for all employees and the right to request flexible working arrangements for parents and carers into operation. They have also approved and published the Code of Practice for Employers and Employees Right to Request Flexible Working and Right to Request Remote Working. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Mar 15, 2024
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Technical Roundup 1 March

Welcome to the latest edition of Technical Roundup. In developments since the last edition, IAASA has published a consultation paper on its proposal to adopt a Sustainability Assurance Standard in Ireland. The effective date of the standard will be for financial years starting on or after 1 January 2024. The Chartered Institute of Public Finance and Accountancy (CIPFA) has announced the appointment of Owen Mapley as its new Chief Executive Officer as the current CEO, Rob Whiteman, prepares for retirement. Read more on these and other developments that may be of interest to members below. Financial Reporting EFRAG, the European Financial Reporting Advisory Group, is inviting feedback on the Post-Implementation Review of IFRS 16 Leases via a survey which remains open until 15 April 2024. EFRAG’s survey on the IASB Exposure Draft on Financial Instruments with Characteristics of Equity remains open until 8 March 2024. The Financial Reporting Council (FRC) has published a consultation on proposed revisions to Technical Actuarial Standard 200 (TAS 200).  The proposed revisions include changes to support practitioners in considering the implications for actuarial work of the FCA’s Consumer Duty principle and the removal of provisions that are already sufficiently addressed in the FRC’s General Actuarial Standards. The FRC has announced the successful signatories to the UK Stewardship Code following the latest round of applications. There are now 273 signatories to the Code, representing £43.3 trillion assets under management. With the publication of the revised Corporate Governance Code, the FRC is undertaking a fundamental review of the UK Stewardship Code 2020 (the Code) to ensure it supports growth and the UK’s competitiveness. The IFRS Foundation has published a summary of evidence gathered by national standards-setters on the effects of guidance on materiality judgements in IFRS Accounting Standards. The International Sustainability Standards Board (ISSB) has published a webcast which highlights the importance of industry-specific disclosures to investors. In addition to this, educational material which is designed to help companies using the SASB Standards meet the requirements of IFRS S1, has also been published. Accountancy Europe has issued its February 2024 Newsletter detailing publications, updates and topical items in the month. Anti–money laundering and sanctions The headquarters of AMLA, the EU’s new Anti-Money Laundering Authority, has been awarded to Frankfurt. The new authority is the centrepiece of an anti-money laundering package from the European Commission that aims to protect communities across Europe from criminal and terrorist activities by denying them access to the financial system. Click here for an Irish government statement on the selection. There has been a recent change in the law in relation to UK domestic politically exposed persons (PEPs). New regulations which took effect on 10 January 2024, provide that for the purpose of assessing risk, the starting point is that domestic (i.e.UK) PEPs present a lower level of risk than non-domestic PEPs. If no enhanced risk factors are present, the extent of enhanced customer due diligence measures to be applied in relation to that customer or potential customer is less than the extent to be applied in the case of a non-domestic PEP. Please click here for an article with links to the new regulation. On the sanctions front, the UK government has recently published its UK first sanctions strategy (22 February 2024). The strategy addresses how it uses sanctions as a foreign and security policy tool. It sets out the continued investment, partnerships and structures that support UK government sanctions and the cross-government architecture built to deliver sanctions. It outlines the partnerships developed with the private sector, NGOs, and international partners, and the steps being taking to strengthen sanctions implementation and enforcement. Sustainability EFRAG has launched three educational videos which are dedicated to the ESRS Listed SME and Voluntary SME Exposure drafts, which were released for public consultation in January. IAASA has published a Consultation paper on its proposal to adopt a Sustainability Assurance Standard in Ireland. The effective date of the standard will be for financial years starting on or after 1 January 2024.  IAASA has identified three possible options for a sustainability assurance standard in Ireland and is seeking stakeholders’ views on the appropriate choice. The International Sustainability Standards Board (ISSB) has released its February 2024 update and podcast, which reflects on topical matters in the month. Around 1,000 companies, investors and regulators met on 22 February at the IFRS Sustainability Symposium in New York City to exchange insights on the introduction of the ISSB. To support regulators as they plan their journey to adopt the Standards the IFRS Foundation has published the Preview of the Inaugural Jurisdictional Guide for the adoption or other use of ISSB Standards. The International Federation of Accountants (IFAC), in conjunction with AICPA & CIMA, has published an updated report entitled “The State of Play: Sustainability Disclosure and Assurance 2019-2022, Trends & Analysis”. The report notes some positive trends in 2022 in relation to sustainability reporting, it also highlighted the need for companies worldwide to move toward a global system of sustainability disclosure requirements. Legislation recently enacted and draft The Irish Digital Services Act 2024 was passed into law on 11 February 2024 and came into force from 17 February 2024. Read more about this legislation and the European regulation commonly also referred to as the Digital Services Act which applies in full in all Member States from 17 February 2024 in our recent news item on the digital services legislation. The Credit Union (Amendment) Act 2023 which amends the Credit Union Act 1997 was signed into law in December 2023. Statutory instrument No. 57 of 2024 was issued on 21 February 2024 and commences the 2023 Act in phases, the first two of which are 22 February and 8 April 2024. Please click the link for a recent news item which outlines some of the provisions of the 2023 amending legislation which may be of interest to our members, including provisions relating to the accounts, board of directors and corporate credit unions. With European lawmakers reaching provisional agreement on the final text of a new Artificial Intelligence Act (AI Act) in December 2023, this article by KPMG analyses what the proposed new framework could mean for developers and users of AI systems. The authors write that businesses are now in a position to consider the role AI plays in their organisation and how to mitigate potential risks that may arise as a result of this new legislative advancement. Click here to read the full article. Following on from the information we brought readers in the last couple of editions of round up on the Economic Crime and Corporate Transparency Act 2023, please click to go to an article written by Maeve Hunt Grant Thornton (NI ) LLP on the next steps (which article was originally published in Practice News February 2024). Other news In February 2024 DETE issued inward investment screening draft guidance setting out information about the responsibilities and obligations arising for third country investors because of the Screening of Third Country Transactions Act 2023 which will introduce a screening mechanism in Ireland for the first time. The legislation was signed into law on 31 October 2023 and readers can click here for an Institute news item on the legislation. The legislation is expected to commence in Q2 of this year. The Chartered Institute of Public Finance and Accountancy (CIPFA) has announced the appointment of Owen Mapley as its new Chief Executive Officer (CEO) as the current CEO, Rob Whiteman, prepares for retirement. Members of the Professional Accounting Team will join the Chartered Accountants Ireland Cork Society on Wednesday March 6th at the Members in Practice Conference: Connecting colleagues where we will present some technical updates to members. You can book your place here for the event. Here are the links to register: one member or Early Bird 3 for 2. The material from a webinar on responsible business initiatives held by the Dept. of Enterprise Trade and Employment on 14 February 2024 has now been made available. Click here to access the presentations on the Corporate Sustainability Reporting Directive, the OECD guidelines for Multinational Enterprises on Responsible Business Conduct and on Eco design for Sustainable Products Regulation. Readers can also click here for the DETE webpage on responsible business which houses a range of publications on Responsible Business obligations in development or underway that businesses must take heed of. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Mar 01, 2024
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Technical Roundup 16 February

Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has announced its support for a four-week consultation launched this week aimed at tackling the backstop in local audit and reporting.  The consultation will gather views on legislative changes to the Accounts and Audit Regulations 2015. The UK Companies House is hosting a webinar on 22 February on getting ready for changes to UK company law. They will discuss the first set of changes including new rules for registered office addresses and new lawful purpose statements. Read more on these and other developments that may be of interest to members below. Auditing The International Auditing and Assurance Standards Board (IAASB) has published proposed revisions to ISA 240 The Auditors Responsibilities Relating To Fraud In An Audit Of Financial Statements. The proposals aim to strengthen the standard on auditors’ responsibilities related to fraud by defining the expectations in relation to fraud, delineating more robust procedures, and increasing transparency about the auditors’ responsibilities and fraud-related procedures in the auditor’s report. During the consultation period IAASB will release a videos series to help stakeholders understand the proposed revisions and respondents are encouraged to share their insights by June 5, 2024. IAASA undertakes statutory enquiries and investigations under the companies act 2014 and its own regulations. From time to time, IAASA may need to establish committees to carry out full enquiries/investigations. IAASA is seeking potential members and advisors to enquiry/investigation committees. Expressions of interest are sought by 4 March 2024. The Financial Reporting Council (FRC) has announced its support for a four-week consultation launched this week aimed at tackling the backstop in local audit and reporting.  The consultation will gather views on legislative changes to the Accounts and Audit Regulations 2015. Financial Reporting The International Accounting Standards Board (IASB) has released a webinar which introduces IFRS 18, which is expected to be issued in April 2024.  This new Accounting Standard, which will replace IAS 1, will respond to investors’ demand for better information about companies’ financial performance. This will introduce new subtotals, disclosures about performance measures as well as enhanced guidance on aggregation and disaggregation for IFRS reporters. The new standard is expected to be effective from 1 January 2027. The IASB has also released a short webinar addressing the proposals in their Exposure Draft Financial Instruments with Characteristics of Equity. The IFRS Foundation has published its January 2024 monthly news summary. ESMA, the European Securities and Markets Authority, has published the latest edition of its Spotlight on the Market Newsletter. The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment (DECA) on Lack of Exchangeability (Changes to IAS 21). In August 2023, the International Accounting Standards Board published Lack of Exchangeability, which amended IAS 21 The Effect of Changes in Foreign Exchange Rates. UKEB are inviting comments on the DECA by 6 May 2024. The UKEB has issued a draft comment letter on the IASB Exposure Draft Financial Instruments with Characteristics of Equity. This is open for public comments until 8th March 2024. UKEB has also published its final comment letter in response to the IFRS Interpretations Committee’s (IFRIC) Tentative Agenda Decision: Climate-related Commitments (IAS 37). While agreeing with the overall conclusion of IFRIC, the UKEB have suggested some amendments to enhance the clarity of the technical analysis to avoid unintended consequences. EFRAG, the European Financial Reporting Advisory Group, have released their January 2024 update which summarises public technical discussions held and decisions taken during the month. EFRAG has launched a survey to seek input from various stakeholders in preparation for the IASB’s upcoming request for information on the post implementation review of IFRS 16 Leases. The FRC has published a revised version of Actuarial Standard Technical Memorandum 1 (AS TM1) which is effective from 6 April 2024.  Anti–money laundering Issue 24 of SARs in Action is out now, a special issue on UKFIU support for SAR reporters. From virtual workshops to 1-2-1 feedback sessions, the UKFIU’s Reporter Engagement Team have a variety of support options available to SAR reporters, all of which are listed inside this magazine. Also, within issue 24, find updates on the SAR Portal, changes to Companies House and read about the National Investigation Service (NATIS) investigations into the misuse of COVID business support grants. Sustainability EFRAG, the European Financial Reporting Advisory Group has released the first set of technical explanations to assist stakeholders in the implementation of the ESRS. Last year, EFRAG launched its ESRS Q&A platform to collect and answer technical questions. The platform is a useful resource for CSRD reporters and will be updated with further responses in future. EFRAG is hosting an outreach event on 20th February which will provide an overview of the two exposure drafts on sustainability reporting standards for SMEs which were released recently. Other news In a recent blog Company Bureau Formations, a company formation and corporate service practice, provided information which readers may find useful on “Understanding CRO submission rejections 10 key factors”. It provides a list of 10 key pitfalls to avoid which could otherwise lead to a CRO submission being returned including incorrect PPSN and director’s name mismatch with PPSN details. Click here to read more details on the pitfalls. UK Companies House is hosting a webinar on Thursday 22 February at 10:30am to 11am on getting ready for changes to UK company law. They will discuss the first set of changes, including new rules for registered office addresses, a requirement for all companies to supply a registered email address and new lawful purpose statements. They will also share information about future changes and an expert panel will be available to answer questions. Click here to register for the webinar. Accountancy Europe, along with a group of European Businesses, have issued a joint statement calling for the deepening of the EU single market and renewing the dynamic of European integration. The joint statement also includes some recommendations to overcome some of the obstacles identified. The Dept. Of Finance has recently (February 2024) published its Economic Insights – Spring 2024. The report provides analysis and insights on topical economic issues and developments in a collection of short notes. The Minister for Justice has recently appointed 2 new Data Protection Commissioners to replace the outgoing commissioner. The appointments will take effect from 20 February 2024, for a five-year term. The press release states that the Data Protection Commission has grown significantly in size, scope and responsibility over the last decade and following a review by the Department of Justice into how best to support this growth, the Government decided to appoint two additional Commissioners who were selected following an open competition. Read the full press release here. For further technical information and updates please visit the Technical Hub on the Institute website.                    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Feb 16, 2024
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Technical Roundup 2 February

Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has published some useful reports covering large private companies in the UK as well as a report to support companies applying the UK Corporate Governance Code 2024, which launched last month. EFRAG and IESBA have launched public consultations on sustainability standards and the European Securities and Markets Authority has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA). Read more on these and other developments that may be of interest to members below. Auditing The FRC has issued an update to the Ethical Standard for Auditors. The standard will become effective on 15 December 2024. The FRC has issued a report which highlights some of the key findings and potential actions from research it commissioned into barriers to entry and growth faced by audit firms in the UK.    Financial Reporting The Irish Auditing & Accounting Supervisory Authority (IAASA) has published a summary of the outcomes of its 2023 financial statement examinations. The European Financial Reporting Advisory Group (EFRAG) has published a Feedback Statement on its response to the International Accounting Standards Board (IASB’s) request for information on the Post-Implementation Review of IFRS 15. The Feedback Statement summarises constituent's feedback, including responses to EFRAG’s draft comment letter and explains how the feedback received was considered by EFRAG in reaching the positions reflected in their final comment letter. The IASB has issued its January 2024 update, as well as a joint update with the International Sustainability Standards Board (ISSB). Podcasts covering both of these updates have also been released by the IASB and IASB/ISSB. The IFRS Interpretations Committee has released a podcast which provides an update on its recent activities, including details of two recent discussions relating to climate-related commitments and disclosure of revenue and expenses for reporting segments. The Financial Reporting Council (FRC) has published a thematic review entitled “Reporting by the UK’s largest private companies”. This report provides details of the quality of reporting in these companies, including areas where the standard could be improved. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA), one on reverse solicitation and one on the classification of crypto-assets as financial instruments with comments requested by 29 April 2024. Anti – money laundering Would you like to know more about trust and company service providers (TCSPs)? For more information on what they are and how the Institute supervises members which provide TCSP services please click on the Technical hub anti -money laundering information where a new page dedicated to information about TCSPs has just been published. Sustainability EFRAG has launched a public consultation on the sustainability reporting standards for listed SMEs and for non-listed SMEs who wish to voluntarily report on their sustainability activities. This consultation will remain open until 21 May 2024. It is intended that the listed SME standards will be effective from 1 January 2026 (with a 2 year opt-out) while the voluntary non-listed SME standards are intended to assist SMEs in responding to requests for sustainability information that they receive from business counterparts (i.e., banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner. The International Ethics Standards Board for Accountants (IESBA) has launched two exposure drafts on ethical considerations in sustainability reporting and assurance. The Exposure Drafts cover International Ethics Standards for Sustainability Assurance as well as Using the Work of an Expert. Comments are requested by 30 April. The International Sustainability Standards Board (ISSB) has released its January 2024 podcast. Emmanuel Faber and Sue Lloyd (Chair and Vice-Chair of the Committee) discuss recent developments and their priority areas for the upcoming year. The International Federation of Accountants (IFAC’s) recent episode of “The Fast Future with IFAC” includes excerpts from a presentation to IFAC's SMP Advisory Group on topics related to sustainability. The European Environment Agency (EEA) have issued their 2024 update briefing of  ‘The costs to health and the environment from industrial air pollution in Europe’ which presents the latest assessment of the trends in externalities of industrial air pollution from over 10,000 facilities in Europe, from 2012 to 2021. These facilities report data on pollutant releases and transfers to the European Industrial Emissions Portal. The European Central Bank (ECB) has set out its focus areas for 2024 and 2025 which will guide its activities on climate change. The ECB have also set out their planned measures to address the focus areas. The European Parliament has adopted a directive which seeks to protect consumers from greenwashing and misleading marketing practices relating to environmental claims. Other news The 2018 Corporate Governance Code (the Code) was updated in January 2024 following a consultation which concentrated on a limited number of changes. The 2024 Code will apply to financial years beginning on or after 1 January 2025. The FRC has also published guidance to support companies in applying the Code. The Charity Commission of Northern Ireland has announced 31 January 2024 as the first mandatory filing deadline for 1,983 charities registered prior to May 2019. There is also a further 279 charities, registered after May 2019, which have the end of January deadline.  President of the European Commission Ursula von der Leyen has launched the Strategic Dialogue on the Future of Agriculture, a new forum mandated to shape a shared vision for the future of the EU's farming and food system. The European Commission proposes to revise the European Works Councils (EWCs) Directive to further improve social dialogue in the EU. Meaningful information and consultation of employees in key company decisions can help anticipate and manage changes like addressing labour shortages or introducing new technologies. Accountancy Europe has published a factsheet on the Carbon Border Adjustment Mechanism, which is now in enforced in the EU. The factsheet provides an overview of its main provisions. Our last edition of Roundup brought readers some information about the UK’s Economic Crime and Corporate Transparency Act which received royal assent on 26 October 2023. We included a link to an Institute information guide outlining some of the changes which may be of interest to members. In this week’s edition we report that the first changes to UK company law are expected on 4 March Companies House writes that it is aiming to introduce the first set of measures under the Economic Crime and Corporate Transparency Act on that date. Click here for a summary of what changes are expected and how you can sign up for e mail newsletters from Companies House. A new study published by Skillnet Ireland and IDA Ireland has highlighted the need to upskill non-IT employees with key digital and data skills as this has become a requirement for all businesses in order to ensure our companies have a strong talent pipeline capable of adapting to the changing demands of digitalisation. Spring 2024 Legislative Programme The Irish Government recently published its legislative programme for Spring 2024. The link to the press release and the contents of the programme were included in our last edition and below are some of the items in draft legislation which might be relevant to members. An interesting one is the Access to Cash Bill. This Bill is listed for priority drafting. Its aim is to preserve access to cash. The Bill will also look at the resilience of the cash system and the manner in which cash travels around the system in Ireland. This involves two main elements – the regulation of ATM operators and the regulation of Cash in Transit companies. Since the publication of the legislative programme the Government has published the general scheme of the Access to Cash Bill and you can find more details of the general scheme here. Since the Autumn legislative programme in October 2023 the Digital Services Bill and the Charities (Amendment) Bill were initiated and are working their way through the legislative process. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill is still listed as heads in preparation and is on the priority drafting section. The Co-operative Societies Bill and the Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023 are still in preparation. Heads are in preparation for a National Cyber Security Bill and work is underway on an EU Data Bill which is to give effect to the EU Data Act. This is an EU regulation, but the Department of Enterprise, Trade and Employment has been advised that primary legislation is needed to enact it. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Feb 02, 2024
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Technical Roundup 19 January

Welcome to this week’s Technical Roundup. In developments this week, the European Financial Reporting Advisory Group (EFRAG) has announced that it has completed its due process regarding amendments to IAS 21, the Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability and has submitted its Endorsement Advice Letter to the European Commission.  The European Banking Authority has extended its AML/CFT guidelines to crypto-asset service providers (CASPs). The new guide highlights risk factors and mitigating measures CASPs must consider. Read more on these and other developments that may be of interest to members below. Auditing IAASA Consultation on ISA (Ireland) 505 IAASA has published a Consultation paper seeking views on their proposed revisions to International Standard on Auditing (ISA) (Ireland) 505 External Confirmations with related conforming amendments to ISA (Ireland) 600 (Revised February 2023) Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). The proposed effective date of the revised standard is for audits of financial statements for periods beginning on or after 15 December 2024. Responses are requested by Friday 23 February 2024. The consultation paper and proposed revised standard can be found here along with the proposed conforming amendments and a response template. IAASB Consultation on publicly traded and public interest entities definitions The IAASB has launched a consultation process on proposed narrow scope amendments to ISQMs, ISAs AND ISRE 2400 (REVISED) to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards). These proposed revisions have two key objectives: align definitions and requirements in IAASB standards with new definitions in the IESBA Code. the amendments would extend the applicability of existing differential requirements for listed entities to meet heightened stakeholder expectations regarding audits of public interest entities (PIE). Key proposed revisions include extending the scope of the entities included under the International Standards on Quality Management and the International Standards on Auditing such that they will be subject to: Engagement quality reviews; providing transparency in the auditor’s report on specific aspects of the audit, including auditor independence, communicating key audit matters, and the engagement partner’s name; and communicating with those charged with governance to help them fulfil their responsibility overseeing the financial reporting process. Responses are requested by 8 April and the documents can be accessed here. Financial Reporting EFRAG, the European Financial Reporting Advisory Group, has published its December 2023 update which summarises public technical discussions held and decisions taken during the month. EFRAG has announced that it has completed its due process regarding amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, and has submitted its Endorsement Advice Letter to the European Commission. EFRAG has published its draft comment letter on the International Accounting Standards Board’s (IASB) Exposure Draft ED/2023/5 Financial Instruments with Characteristics of Equity (Proposed amendments to IAS 32, IFRS 7 and IAS 1). Comments are welcomed by EFRAG by 20 March 2024. ESMA, the European Securities and Markets Authority, has published the latest edition of its newsletter. Anti – money laundering 10 January 2024 saw the commencement of the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 (Amending Regulations), which were laid in mid-December and provide for changes to the enhanced due diligence (EDD) requirements in relation to so-called domestic PEPs (i.e. a politically exposed person entrusted with prominent public functions by the UK).  The Economic Crime and Corporate Transparency Act (ECCTA) received royal assent on 26 October 2023. It includes a new much-debated failure to prevent fraud offences and new enhanced powers for UK Companies House bringing changes to the way it will conduct its business. Few of the provisions will apply immediately with secondary legislation and system development within Companies House required for many of the provisions. The Institute has produced a brochure outlining some of the changes which may be of interest to members which can be accessed here. One of the intentions of the ECCTA is to improve the accuracy and quality of the data of the registers of Companies House and to help tackle economic crime and drive confidence in the UK economy. Companies House have published a summary of steps that will be taken to  improve Companies House data and also outlines a new identity verification process that will be operational later in 2024. One of what the Serious Fraud Office in the UK describes as key provisions of the ECCTA came into force on 15 January 2024 with the extension of the Serious Fraud Office’s section 2A ‘pre-investigation’ powers. Prior to the extension the SFO writes (in a social media newsletter) that it could under section 2A obtain information from companies or individuals to support its intelligence work and to help determine whether to open an investigation.  From the 15 January SFO notes it has these powers across every intel operation - including fraud.  This means it can now obtain data such as banking records before a formal investigation even begins, which will also allow them to restrain assets more quickly where they identify they could be at risk - helping to speed up the early investigative stage of their cases and better protect victims’ money. Sustainability The IFRS Foundation and Global Reporting Initiative have published a summary of interoperability considerations for greenhouse gas (GHG) emissions. This illustrates the areas of interoperability a company should consider when measuring and disclosing Scope 1, Scope 2 and Scope 3 GHG emissions in accordance with both GRI 305: Emissions and IFRS S2 Climate-related Disclosures. IFAC, The International Federation of Accountants, has published “A Literature Review of Competencies, Educational Strategies, and Challenges for Sustainability Reporting and Assurance”. This report discusses the new and existing competencies required of accountants to meet the sustainability-related disclosure, reporting and assurance challenges faced by stakeholders. Other news The Government recently approved guidance on the use of AI in the Public Service, brought to Cabinet in the wake of agreement on a new European AI Act reached between the European Parliament and the Council.  The Government has instructed that all AI tools used by the Irish Public Service should comply with seven requirements for ethical AI that have been developed by the European Commission’s High Level Expert Group. The European Banking Authority’s latest AML/CFT Newsletter is out. Take a look for the latest on consultations, new guidelines, risks and the EBA's work on tackling financial crime. The European Banking Authority has extended its AML/CFT guidelines to crypto-asset service providers (CASPs). The new guide highlights risk factors and mitigating measures CASPs must consider. The Government Chief Whip, Minister Naughton, has published the Spring 2024 legislative programme with 46 priority bills due for progression. The AI Advisory Council, established by Minister of State with responsibility for Digital, Dara Calleary TD, to provide independent expert advice to government on artificial intelligence policy, met for the first time on 17 January. The Council will provide independent expert advice to government on artificial intelligence policy, with a specific focus on building public trust and promoting the development of trustworthy, person-centred AI. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Jan 19, 2024
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Technical Roundup 5 January

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. 

Jan 05, 2024
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Technical Roundup 15 December

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        ~

Dec 15, 2023
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Technical Roundup 1 December

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.

Dec 01, 2023
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Technical Roundup 17 November

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.

Nov 17, 2023
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Technical Roundup 3 November

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.  

Nov 03, 2023
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