• Current students
      • Student centre
        Enrol on a course/exam
        My enrolments
        Exam results
        Learning Hub data privacy policy
      • Course information
        Students FAQs
        Student induction
        Course enrolment information
        Key dates
        Book distribution
        Timetables
        FAE elective information
      • Exams
        Exam Info: CAP1
        E-assessment information
        Exam info: CAP2
        Exam info: FAE
        Access support/reasonable accommodation
        Extenuating circumstances
        Timetables for exams & interim assessments
        Interim assessments past papers & E-Assessment mock solutions
        Committee reports & sample papers
        Information and appeals scheme
        JIEB: NI Insolvency Qualification
      • CA Diary resources
        Mentors: Getting started on the CA Diary
        CA Diary for Flexible Route FAQs
      • Admission to membership
        Joining as a reciprocal member
        Conferring dates
        Admissions FAQs
      • Support & services
        Recruitment to and transferring of training contracts
        CASSI
        Student supports and wellbeing
        Audit qualification
        Diversity and Inclusion Committee
    • Students

      View all the services available for students of the Institute

      Read More
  • Becoming a student
      • About Chartered Accountancy
        The Chartered difference
        What do Chartered Accountants do?
        5 Reasons to become a Chartered Accountant
        Student benefits
        School Bootcamp
        Third Level Hub
        Study in Northern Ireland
        Events
        Blogs
        Member testimonials 2022
        Become a Chartered Accountant podcast series
      • Entry routes
        College
        Working
        Accounting Technicians
        School leavers
        Member of another body
        International student
        Flexible Route
        Training Contract
      • Course description
        CAP1
        CAP2
        FAE
        Our education offering
      • Apply
        How to apply
        Exemptions guide
        Fees & payment options
        External students
      • Training vacancies
        Training vacancies search
        Training firms list
        Large training firms
        Milkround
        Recruitment to and transferring of training contract
        Interview preparation and advice
        The rewards on qualification
        Tailoring your CV for each application
        Securing a trainee Chartered Accountant role
      • Support & services
        Becoming a student FAQs
        Who to contact for employers
        Register for a school visit
    • Becoming a
      student

      Study with us

      Read More
  • Members
      • Members Hub
        My account
        Member subscriptions
        Annual returns
        Application forms
        CPD/events
        Member services A-Z
        District societies
        Professional Standards
        Young Professionals
        Careers development
        Diversity and Inclusion Committee
      • Members in practice
        Going into practice
        Managing your practice FAQs
        Practice compliance FAQs
        Toolkits and resources
        Audit FAQs
        Other client services
        Practice Consulting services
        What's new
      • In business
        Networking and special interest groups
        Articles
      • Overseas members
        Home
        Key supports
        Tax for returning Irish members
        Networks and people
      • Public sector
        Public sector news
        Public sector presentations
      • Support & services
        Letters of good standing form
        Member FAQs
        AML confidential disclosure form
        Institute Technical content
        TaxSource Total
        The Educational Requirements for the Audit Qualification
        Pocket diaries
        Thrive Hub
      • Member benefits
        Member benefits
    • Members

      View member services

      Read More
  • Employers
      • Training organisations
        Authorise to train
        Training in business
        Manage my students
        Incentive Scheme
        Recruitment to and transferring of training contracts
        Securing and retaining the best talent
        Tips on writing a job specification
      • Training
        In-house training
        Training tickets
      • Recruitment services
        Hire a qualified Chartered Accountant
        Hire a trainee student
      • Non executive directors recruitment service
      • Support & services
        Hire members: log a job vacancy
        Firm/employers FAQs
        Training ticket FAQs
        Authorisations
        Hire a room
        Who to contact for employers
    • Employers

      Services to support your business

      Read More
☰
  • Find a firm
  • Jobs
  • Login
☰
  • Home
  • Knowledge centre
  • Professional development
  • About us
  • Shop
  • News
Search
View Cart 0 Item

News

  • Home/
  • News for RSS feed 3
☰
  • News
  • News archive
    • 2022
    • 2021
  • Press releases
    • 2022
    • 2021
  • Newsletters
  • Press contacts
  • Media downloads
  • Podcasts Chartered Accountants Ireland
  • Budget day news
Tax RoI
(?)

Payment and receipt of interest and royalties without deduction of income tax updated guidance

Revenue has updated the Tax and Duty Manual that provides guidance on the payment and receipt of interest and royalties without deduction of income tax. The updated guidance clarifies Revenue’s interpretation of the meaning of bona fide banking business in the State, and, in certain circumstances, modifies the Self-Certification process in relation to the application of withholding tax on certain payments of interest and royalties at the applicable DTA rate under the terms of a double taxation agreement.

Jan 09, 2023
READ MORE
Professional Standards
(?)

Changes to SIP 3.1 - IVAs

Introduction Under the Joint Insolvency Committee’s (JIC’s) strategic work plan Statements of Insolvency Practice (SIPs) are subject to periodic review in order to ensure they remain relevant to changing legislation and market conditions. Following consultations with the profession and other stakeholders, including the Insolvency Service, HMRC and major creditor representatives, a revised version of SIP 3.1 – Individual Voluntary Arrangements, has now been approved by the JIC and the Recognised Professional Bodies for implementation with effect from 1 March 2023. Summary of Changes The principal changes in the revised SIP 3.1 relate to the degree of emphasis on the IP’s responsibility to ensure that the debtor has received suitable advice prior to entering an IVA and during its implementation. This includes ensuring that the debtor is aware of all potential debt relief solutions available and that they are provided with adequate time to think about the consequences and the options available before instructing an IVA to be drawn up. Where the debtor comes to the IP through a referrer, the IP should make themselves aware of the nature and extent of the advice previously given to the debtor and collect evidence of such advice. The IP should ascertain whether referrers that have advised the debtor are FCA authorised or exempt for debt advice purposes and document their status. If there are any shortcomings in the advice the IP is required to provide the appropriate advice themselves. The revised SIP 3.1 incudes a greater emphasis on documenting the process, including, where appropriate, advice calls, and on providing information to creditors that is more extensive and useful to them than before. There is also a focus on providing tailored information and advice relevant to the debtor’s particular circumstances rather than relying on generic explanations and standardised texts. The changes between the revised version and the current (2014) version of SIP 3.1 are set out in this comparison document. Publication and Implementation The revised SIP 3.1 will apply to IVAs where the Nominee is appointed on or after 1 March 2023. The revised SIP 3.1 applies in Northern Ireland, England and Wales. The revised SIP 3.1 is available here.

Jan 09, 2023
READ MORE
News
(?)

Six key activities to expect from the economy in 2023

After the uncertainties of the last few years, we’ve learned to approach a new year with caution. However, Graham Reid has given us six reasons to be hopeful about Ireland’s economy in 2023 As we look into the new year, Ireland's economy is relatively well-positioned to deal with the turbulent economic conditions that are persevering from 2022. Strong multinational and technology sectors, robust employment levels, a highly skilled workforce and consistently favourable exchequer returns will give policymakers greater flexibility to respond to the challenges that may lie ahead. Here are six things we expect to see in the economy in 2023. 1. Lower spending levels due to sustained inflation Rising costs across the Irish and global economies are eroding consumer and business confidence. Consumer sentiment in Ireland tumbled in the latter half of 2022, and EY's Future Consumer Index found that 52 percent of global consumers are spending less on non-essential goods. Rising consumer and business prices are expected to persist into 2023, which is likely to further reduce real disposable incomes, increase interest rates, lower consumer demand, impact business performance and increase costs for investment and capital programmes for both business and Government. These effects will slow activity levels and feed into lower economic growth in 2023. 2. Ireland to remain resilient Although not immune from the turbulence in the global economy, as a small and open economy, Ireland should be somewhat better placed to deal with a downturn due to a strong combination of factors, including the presence of multinationals, continued inward investment, robust Irish businesses and government investment. Ireland's sectoral focus on pharma, food, technology and finance and the presence of overseas investment and companies has been a success story of the last two decades. Although the risks are well documented, it has significantly boosted Ireland's exchequer position. Most importantly, Ireland has a vibrant and growing indigenous business sector that includes large domestic and outbound multinationals and a thriving and expanding entrepreneurial cadre. These businesses are essential to the economy's vitality, providing critical employment and economic activity, fostering entrepreneurship, providing jobs and diversifying our export markets post-Brexit. Ireland has the benefit of a highly educated and skilled workforce and is now the sole English-speaking, common-law country within the European Union (EU). 3. Policy focus on energy costs and security of supply As energy costs spiralled throughout 2022, the affordability and reliability of supply issues dominated the political agenda. The war in Ukraine and rapidly rising energy prices brought the over-reliance on other geographies, and single sources of energy to the fore as countries acted swiftly to expand locations and diversify supply. The government's role in subsidising costs also came into question as it was deemed necessary to provide households with energy credits to tackle higher bills. The topic of supply diversification, energy price caps, and the effects of such interventions will span into 2023 and beyond. 4. Investment in critical infrastructure to retain competitiveness Maintaining competitiveness is essential for Ireland's continued growth story, particularly in attracting investment and talent. For businesses to continue to invest and prosper in Ireland, they will need to attract top global talent to work, particularly when there is a tight labour market and record employment levels. A buoyant, functioning housing market where people can find suitable accommodation is essential for companies. We know that housing availability can significantly impact our global competitiveness. This year will see continued investment in improving infrastructure capacity in housing and ensuring adequate supporting infrastructure such as water and energy to accommodate our expanding population. Getting this right will facilitate further economic and population growth while supporting business investment and entrepreneurship. 5. Disrupted transition to net zero The transition to a green economy has been disrupted due to the ongoing energy and cost of living crises. Businesses and consumers are refocusing on costs, and there is less appetite to spend more on greener alternatives. However, policy measures to encourage climate-friendly activities and behaviours, such as carbon taxes, become more controversial if they are seen to feed further price increases. New EU regulations such as the Corporate Sustainability Reporting Directive (CSRD) will emphasise transparent corporate reporting and set a higher standard on environmental, social and governance (ESG) practices. Government policy in 2023 will have to carefully balance the need for decisive action on climate action and the mounting costs pressures on households. 6. Accelerated digitalisation agenda Digitalisation is a global trend we can expect to gather further pace in 2023. We will see more data-centricity, tech transformations and the rise in the use of artificial intelligence to solve business issues, manage costs, help with sustainability challenges and deliver long-term value. The Irish Government's National Digital Strategy (NDS), launched in 2022, aims to "drive a step-change in the digitalisation of businesses, in particular, SMEs, to sustain Ireland's attractiveness as a location for leading digital enterprises." Taking advantage of the presence of a strong tech sector in Ireland, and becoming a leader in digitalisation and innovation, will put us on a solid global footing for continued investment and economic growth in the years ahead. Graham Reid is Partner and Head of Markets at EY Ireland.

Jan 06, 2023
READ MORE
News
(?)

Working across the generations

With Generation Z now established in the workplace, companies need to be savvy when creating an accommodating workplace without forgetting the previous generations' needs. Paul O'Donnell explains how to do just that Are you Generation Z, Generation Y, Generation X, or the rarer breed of baby boomer? With retirement ages drifting and young graduates streaming into the jobs market, a truly diverse workplace will include workers from all generations. Born between 1996 and 2007, Generation Z are not a niche cohort – they make up over a fifth of the population and are the fastest-growing electoral and consumer group – but as relative newcomers to the workforce, they may play a different role as part of their respective teams. In 2022, the Irish recruitment firm HRM released its 2022 'Understanding the Misunderstanding – Intergenerational Insight Report'. The report highlights how age-related stereotypes could mean that workers are somewhat pigeonholed and often assigned specific tasks based on their age and perceived behaviours. As this misunderstanding can negatively impact employee satisfaction and fulfilment – as well as the bottom line – a strategic approach to creating a working environment that meets the needs of all workers is vital. Reading between the lines, the report highlights the inherent challenges in building a genuinely intergenerational workplace and why employers must be cognisant of these to unlock and tap into the talent of all age groups. Priorities As illustrated by the survey findings, each generation has priorities regarding their chosen employer and future career path. It was clear that Generation Z workers have different views on work/life balance, and their preferred communication style is markedly different to that of their colleagues. It has been well-documented that Generation Z, on the whole, tends to be well-educated. They have also witnessed the significant disruption of a global pandemic as they began their working lives and have come of age as the realities of the climate crisis begin to bite. Thus, it is perhaps unsurprising that the report indicates that Generation Z sees themselves as quite different from other generations. On the ground, this can cause issues. An astounding third of Generation Z participants think differing perspectives held by different generations caused difficulties at work regularly. However, the diverse needs of each generation of workers are not necessarily competing. For example, the report found that Generation Z prefers an employer that supports their health and well-being. In contrast, baby boomers were far more concerned about the organisation's financial viability. Yet, employees from all generations benefit from an employer focused on both the bottom line and the health and well-being of its employees. According to a 2021 LinkedIn survey on learning and development, Generation Z is keen to upskill and learn on the job, as their longer-term goals may include an entrepreneurial endeavour. This commitment to lifelong learning should be considered when building people strategies that include ongoing training, rewards or recognition programmes, and career path trajectory. We also learned that for Generation Z, a collaborative culture is the number one factor when choosing a workplace. We know that firms with rigid hierarchical structures are the most likely to struggle to adapt to Generation Z's workplace needs. However, the reality is that traditional hierarchical structures and incremental career growth based on tenure are now outdated concepts. Yet, while an organisation may seek to re-orient its historical structure to accommodate Generation Z as they continue to stream into the workforce, this must be balanced against a duty of care to the other generations of workers. In this regard, the pace of organisational and technological change in the last two decades certainly presents both opportunities and challenges. As digital natives, Generation Z will invariably find digital up-skilling and role development easier – or at least more straightforward. And according to Kantar Global, the smartphone tends to be Generation Z's preferred method of communication. As hybrid workplace models become embedded, ensuring effective communication and savvily employing technology to enable this is a given. However, the pace of change can pose some problems, which must also be considered when creating and developing learning strategies for up-skilling and role development. Blending the generations' needs When blending the right mix of generations, employers must not lose sight of the bigger picture: they must be aware of the differing priorities of each, but this cannot be to the detriment of any one age group. By recognising the needs and wants of each employee cohort, they can exploit the possible synergies that a diverse workforce is capable of. The hunger and drive displayed by Generation Z will always be a welcome addition to a team, but the talent, skills, and experience of other generational cohorts are indispensable. Can a company culture please everyone all of the time? Of course not. But by re-orienteering critical elements of the organisation's culture to satisfy Generation Z, they risk alienating the other generational cohorts – who still comprise the majority of the workforce.  The HRM report clearly illustrates that the key to maintaining good intergenerational relationships is recognising differences and discussing them. As with most workplace challenges, clean and open communication – face-to-face, via email, or even over WhatsApp – is key. Paul O'Donnell is CEO at HRM Search Partners.

Jan 06, 2023
READ MORE
News
(?)

Empowering women in the workplace in 2023

With the gender pay gap legislation in full swing, now is the time to invest and empower women in the workplace. Dawn Leane explains how There are numerous ways in which organisations can support the development of female talent. In approaching this piece, I asked myself, 'what is the main challenge that female coaching clients report?' The answer appears deceptively simple, so simple that it is often overlooked: communication—specifically, communication in two areas: articulating expectations and delivering unequivocal feedback. As advice goes, it's not particularly innovative or exciting, but it is fundamental. After all, how can anyone live up to expectations if they don't know what they are? Early promotions are usually based on the ability to perform tasks to a high standard, manage a function, coordinate and plan. Frequently, a promotion is preceded by the 'tap on the shoulder' indicating that an application is actively encouraged. However, at a senior level, there is a whole set of essential behaviours, attitudes and competencies that are not explicitly stated anywhere. Of course, this also applies to men. However, they have a more significant advantage when understanding many of these behavioural norms and unwritten rules. Accordingly, professional women are far more likely to find themselves disadvantaged when navigating the corporate environment. I often share the example of a client who was identified as having high potential, yet her career had stalled. She was performing well and getting all the right signals, but nobody had discussed her next move with her. Ultimately, she initiated the conversation with her manager, who asked what took her so long. She was being judged for her lack of self-advocacy – yet, nobody had told her this was an expectation. The double-bind—a set of double-standards women are subjected to in the workplace—is a significant factor in communication. To succeed, women must display the traits commonly associated with effective leadership, such as assertiveness. However, when women behave assertively, they often suffer consequences that their male counterparts don't experience. A significant long-term impact is associated with the double bind – it can prevent women from receiving the crucial feedback they need to progress. According to research conducted by McKinsey and LeanIn.Org in 2016, managers (men and women) are more likely to be concerned about appearing harsh or provoking an emotional response when delivering developmental feedback to women and so dilute the feedback or talk around the issue. The consequence of this hesitancy is that women are less likely to receive the critical feedback needed to succeed. Year after year, the McKinsey and LeanIn.Org Women in the Workplace report illustrates how women lose ground at every step on the corporate ladder. As a result, there are too few women to promote to senior leadership positions in representative numbers. In addition, women are increasingly leaving organisations that make it difficult for them to advance. When discussing career development with female employees, managers should consider the following: Don't assume that the organisation's culture is understood equally by all; Clearly articulate the behaviours that the organisation values and rewards; Don't be afraid to set performance objectives that may be difficult to quantify, such as networking; Create space for dialogue, asking questions such as 'what information would be helpful right now?'; and If tempted to dilute difficult feedback, ask yourself, 'what would I value if I were in this person's position?' Information is power. Presenting female employees with clear rules of engagement and detailed feedback levels the playing field. Once that is achieved, women will do the rest! Dawn Leane is Founder of Leane Empower.

Jan 06, 2023
READ MORE
Sustainability
(?)

Sustainability/ESG bulletin, Friday 6 January 2023 ​

  In our first Sustainability/ESG bulletin of 2023 we bring you sustainability/ESG predictions for 2023 as well as news of Ireland’s 2023 Climate Action Plan, a major overhaul of the EU’s carbon market, and the agreement reached at the Biodiversity COP. Also covered is a new network for Chartered Accountants working in ESG/Sustainability, and articles, jobs and events. Sustainability in 2023 – ‘Just smart business’ 2023 is likely to see increased focus on sustainability reporting for businesses, with the transposition into Irish law of the Corporate Sustainability Reporting Directive (CSRD), and ongoing updates from the International Sustainability Standard Board (ISSB), the EU Taxonomy and the Sustainable Finance Disclosure Regulation (SFDR). Also expected is an increased focus on biodiversity and business, an increase in the need for businesses to adapt to the impact of rising temperatures, more circularity and conscious use of resources, a greater awareness of greenwashing (and ‘green wishing’ and ‘green hushing’), and increased investment in renewables. Overall the ongoing integration of ESG into ‘business-as-usual’ is likely to continue. John Friedman, Managing Director of ESG at Grant Thornton, reportedly called for sustainability to be described as simply “business”, because “no matter what you call it, it is just smart business to understand and manage those things that are levers for attracting more customers and investments [and] engaging your workforce, which all drive profitability.” For more predictions on sustainability/ESG in 2023, here is what Reuters, the Economist and MSCI are saying. The Climate Action Plan 2023 The Irish Government has published its Climate Action Plan 2023 which aims to deliver new jobs and a thriving, green economy for current and future generations. Other benefits include warmer homes, cheaper electricity, better transport, vibrant and resilient communities, biodiversity-rich landscapes and improved health. Read more here. EU overhauls its carbon market Provisional agreement has been reached by the European Parliament and Council on the EU Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM) and a new Social Climate Fund. These are important legislative proposals of the ‘Fit for 55’ package that will further reduce emissions and address their social impacts: Read more here. Agreement reached at ‘Biodiversity COP’ A landmark agreement was reached at the ‘Biodiversity COP’, the United Nations Convention on Biological Diversity (‘COP 15’) which took place from 7-19 December in Montreal, Canada. Governments from around the world came together to agree on a new set of goals to guide global action through 2030 to halt and reverse nature loss. Find out more in our article Biodiversity - a look at the numbers. Consultations The Irish Government has launched a public consultation, open until Friday 17 February 2023, on the National Risk Assessment. This outlines proposed risks facing Ireland in the short, medium, and long term, categorised under the headings economic, geopolitical, social, environmental and technological. The Irish Government is seeking expressions of interest for participants – either individuals or groups – for the 2023 SDG Champions Programme, run by the Department of Environment, Climate and Communications. The goal of the programme is to raise public awareness of the UN Sustainable Development Goals. Deadline for receipt of submissions is Friday 20 January at 5pm. A meeting of the National Stakeholder Forum on the key principle of Agenda 2030 for Sustainable Development of ‘Leaving No One Behind’ will take place on Tuesday 17 January online and in the Aviva Stadium, Dublin from 10.30am – 4.30pm. Register here. Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd Wednesday of every month, beginning with 25 January 2023 14.00-15.00/30 Chartered Accountant House/Teams If you would to join us please email the Institute’s Sustainability Officer susan.rossney@charteredaccountants.ie or sustainability@charteredaccountants.ie Articles Hiring rates decline but focus on 'green talent' - report (Irish Times) EU strikes deal to overhaul carbon market and cut Europe's emissions (Irish Independent) Climate action plan: Clear but painful path set out to cut Ireland’s emissions (Irish Times) Jobs Financial/Reporting Accountant for major energy provider in Ireland’s Energy/Sustainability/Renewables sector. Newly qualified ACAs can contact Dave Riordan, Careers Team, Chartered Accountants. Events The Leinster Society kicks of the new year with a free Expert Series webinar on 11 January, from 12.30pm - 1.30pm on energy saving for your household. A representative from the Sustainable Energy Authority of Ireland (SEAI) will give advice and tips, and answer your questions on how to make your household more energy efficient and sustainable. Register here

Jan 06, 2023
READ MORE
Public Policy
(?)

Public Policy Bulletin, Friday 6 January, 2023

  In this week’s public policy bulletin, we take a look at the record Exchequer receipts for 2022 reported by the Department of Finance. We also examine the commencement of the new statutory sick pay rules and increase in the national minimum wage that took effect this week. Additionally, we review the NTMA’s launch of its latest 20-year green bond as well as the 30th anniversary of the European Single Market. Department of Finance reports record Exchequer returns for 2022 According to figures published by the Department of Finance this week, the Exchequer collected a record tax take of €83.1 billion during 2022. Resulting in an overall budget surplus of €5 billion (compared to the deficit of €4.7 billion seen in 2021) the buoyant figures reflected a strong growth in tax revenue together with a decline in COVID-related public expenditure. However, excluding estimates of windfall corporation tax receipts, the figures reported are consistent with an underlying general government deficit in the region of €5.25 billion. In addressing these windfall tax receipts, the Department of Finance estimates that approximately half of these receipts are potentially at risk in coming years with the Government therefore transferring a significant portion of the windfall tax collected to its National Reserve Fund. Statutory entitlement to employer-paid sick leave takes effect alongside increase in national minimum wage Following the enactment of the Sick Leave Act last year, new provisions entitling employees to up to 3 days of employer-paid sick leave in a year (paid at 70 percent of gross salary up to a cap of €110 per day,) have formally taken effect this month. Where an employee has an extended period of illness, the scheme will operate alongside the existing illness benefit system which kicks in on day four of an absence. Once the employee has exhausted their entitlement to employer-paid sick leave, they will move onto illness benefit, if eligible. In addition, the National Minimum Wage this week increased from €10.50 to €11.30 per hour. This 7.6 percent increase will see employees on the National Minimum Wage, who work a 39-hour week, receiving a pay increase of €31.20 per week or more than €120 per month. The increases mark a further step toward the Government’s ambition to introduce a National Living Wage which will be set at 60 percent of hourly median wages in line with the recommendations of the Low Pay Commission. It will be introduced over a four-year period and will be in place by 2026, at which point it will replace the National Minimum Wage. NTMA raises €3.5 billion from the sale of a new 20-year green bond The National Treasury Management Agency (NTMA) has this week raised €3.5 billion through the syndicated sale of a new 20-year Irish Sovereign Green Bond (ISGB) maturing in October 2043. The funds were raised at a yield of 3.106 percent and generated a total order book of €35 billion from just under 300 investors. Green bonds, an increasingly popular form of sustainable finance, are a type of fixed-income instrument, the proceeds from which must be used for environmental and sustainable development projects. This is Ireland's second sovereign green bond, following the inaugural issue in October 2018. European single market marks 30th anniversary This year sees the EU celebrating a significant milestone – the 30th anniversary of the Single Market. Established on 1 January 1993, the European Single Market allows goods, services, people and capital to move around the EU freely facilitating greater market integration between Member States' economies. Having recently published an analytical paper on the state of the Single Market 30 years after its establishment, this year the EU Commission plans to host numerous debates, exhibitions and campaigns co-organised with stakeholders across the EU to promote the successes of the Single Market and engage citizens in discussing its future.

Jan 06, 2023
READ MORE

Technical Roundup 6 January 2023

Welcome to this week’s Technical Roundup.  In developments this week, the European Financial Reporting Advisory Group (EFRAG) is seeking comments on its draft endorsement advice on amendments to IAS 1; IAASA has published its key messages for auditors in the area of related parties, the Irish Government in recent weeks launched its Climate Action Plan 2023; the Irish Corporate Enforcement Authority has this week published an Information Note on the topic of Early Warning Tools and Restructuring Frameworks. Read more on these and other developments that may be of interest to members below.   Financial Reporting   The European Financial Reporting Advisory Group (EFRAG) is seeking comments on its draft endorsement advice on amendments to IAS 1. Comments are requested by 1 March 2023. EFRAG has also issued its December 2022 update.   The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment on Lease Liability in a Sale and Leaseback —Amendments to IFRS 16 (the Amendments) issued by the International Accounting Standards Board (IASB) in September 2022. Comments are requested from stakeholders by 5 April 2023.   The International Sustainability Standards Board (ISSB) has issued its December 2022 update.   The International Accounting Standards Board (IASB) has issued its December 2022 IFRS for SMEs Accounting Standard Update. This includes FAQs on the proposed amendments to the IFRS for SMEs Accounting Standard and some new resources to support the ongoing consultation.   The IASB has also released its December 2022 podcast and the IFRS Foundation has released its monthly news summary.   Auditing   IAASA has published its key messages for auditors in the area of related parties, and IAASA’s YouTube channel also now includes a video that shares questions asked by IAASA’s audit inspectors during 2022 in the area of related parties. IAASA’s new video provides information on the revised ISA (Ireland) 315 Identifying and Assessing the Risks of Material Misstatement. ISA 315 is effective for financial periods beginning on or after 15 December 2021. Sustainability The Irish Government in recent weeks launched its Climate Action Plan 2023. This sets out how Ireland will accelerate the action required to respond to the climate crisis, putting climate solutions at the centre of Ireland’s social and economic development. Some details of the plan are contained in the government press release and it is intended that an Annex to the Climate Action Plan, outlining more detail on the Plan’s actions, will be published early in 2023. The European Commission recently published two draft notices containing FAQs relating to the Taxonomy Climate Delegated Act and the Taxonomy Regulation. The first Draft Commission Notice is regarding the interpretation and implementation of certain legal provisions of the EU Taxonomy Climate Delegated Act establishing technical screening criteria for economic activities that contribute substantially to climate change mitigation or climate change adaptation and do no significant harm to other environmental objective. The second Draft Commission Notice relates to the interpretation and implementation of certain legal provisions of the Disclosures Delegated Act under Article 8 of EU Taxonomy Regulation on the reporting of taxonomy-eligible and taxonomy-aligned economic activities and assets (second Commission Notice).   Insolvency The Irish Corporate Enforcement Authority has this week published an Information Note on the topic of Early Warning Tools and Restructuring Frameworks. The CEA states that the purpose of the document is to provide assistance to company directors in understanding certain aspects of the European Union (Preventive Restructuring) Regulations 2022. Specifically, the Information Note has been prepared with a view to assisting company directors to understand the importance of maintaining adequate accounting records, what is meant by a company being in financial difficulty, being unable to pay its debts and being insolvent respectively, specific aspects of company directors’ duties where a company is in financial difficulty, and the potential consequences of non-compliance with company directors’ duties. You can read the CEA news item on the Information Note here, the Information Note can be accessed here and a feedback statement from the CEA on the public consultation can also be accessed. Readers’ attention is drawn to a recent high court case from late 2022, in the matter of Spencer Dock Development Company Limited (in liquidation). In the case the High court initially refused to approve payment of fees to a company in which the official liquidator had an interest, but which company was a third party. The court discussed the liquidator as a fiduciary and the role of trust of the liquidator. The court also noted that the main creditor in the liquidation was NAMA which the taxpayer funds and the court referred to its obligation to have regard to the interests of the taxpayer. Subsequently the fee was revised and all payable to the liquidators and the court approved this. Anti-Money laundering, Economic Crime, Cyber security The European Banking Authority issued its 9th AML/CFT Newsletter in recent weeks. It contains information which might be of interest. For example, on EuReCA, the European Reporting system for AML/CFT material weaknesses launched in January of last year. Also, information on the publication of final Remote Customer Onboarding Guidelines in November 2022, a consultation on Guidelines to tackle de-risking and the publication of its 2022 Risk Assessment Report. Read the full newsletter at the above link. The National Crime Authority in the UK has in recent weeks issued its December edition of SARs in Action. The publication contains interesting information including case studies on SARs and a listing of red flag indicators for the crime of sexual exploitation. In recent weeks HM Treasury in the UK published its Anti-money laundering and countering the financing of terrorism: Supervision Report 2020-22. The report covers a number of matters which may be of interest including a listing at section 3.53 of the most common AML breaches identified by the accountancy and legal Professional Body supervisors during the reporting periods. These include inadequate documented policies and procedures and inadequate resource allocated to AML compliance. Sanctions Readers’ attention is drawn to some news items which may be of interest on sanctions since our last publication of round up in mid-December 2022. The European Union issued its ninth package of sanctions against Russia on 16 December 2022. It includes the imposition of export controls and restrictions, restrictions in the banking sector, restrictions in the broadcasting sector, restrictions in consulting services, energy and mining sectors, restrictions on EU nationals holding posts on governing bodies of Russian state owned or controlled legal persons entities or bodies located in Russia. It also added to the individuals and entities the assets of which are frozen. Our sanctions webpage has been updated with some links and information on the ninth package of sanctions. In our last round up we reported on the Central Bank’s update of  its sanctions webpage with an infographic and financial sanctions FAQs. CBI has now helpfully provided a direct link to the European Union's guidance on guidance on Best Practices referred to in one of the sanctions FAQs. On December 20th we reported on the UK auditing ban which was announced in September 2022 and brought into legislative force on December 16, 2022. We also updated our news item from July 2022 which gave details of the UK ban on providing accounting services to Russia to take account of the audit ban which is now in place. Other Areas of Interest Readers are reminded of the coming into force of the Protected Disclosures (Amendment) Act 2002 from 1 Jan 2023. During 2022 Round up brought readers several news items on the passing of the Act which was signed into law in 2022 and the announcement of commencement of the Act from 1 Jan 2023. By way of reminder the new legislation will substantially amend the Protected Disclosures Act 2014, expanding the categories of protected person to include protections for volunteers, shareholders, board members and job applicants for the first time. It also expands the wrongs in respect of which a protected disclosure can be made and imposes requirements on organisations to put internal whistleblowing procedures in place. It also provides for a new Office of the Protected Disclosures Commissioner. Access to the Central Bank of Ireland’s (CBI) Beneficial Ownership Register for Certain Finance Vehicles by members of the public has been suspended following a recent judgment by the European Court of Justice in the Luxembourg business registers case. The CBI has updated its guidance and this third version relates to Chapters 3 and 4 regarding access to the register by members of the public. The Charity Commission (England and Wales) has published an updated set of questions as it launches its new Annual Return in response to charity sector and public feedback. The Irish Pensions Authority has in recent weeks published information on the annual compliance statement (ACS) for 2022 that is provided for under the Pensions Act, 1990 as amended .The 2022 ACS must be prepared no later than 31 January 2023. The Authority will carry out sample checks and audits of trustee compliance with the obligation. The annual compliance statement form to be used can be found on the Authority’s webpage at the above link. On 16 December 2022 the Minister for Enterprise Trade & Employment transposed the EU Directive 2019/1152 on Transparent and Predictable Working Conditions by the European Union (Transparent and Predictable Working Conditions) Regulations 2022. Click here for the news item from DETE on the introduction of the regulations which for example introduce a limit to the length of probationary periods at the beginning of a job and anti-abuse legislation for zero-hour contract work. Readers are reminded of the round up article in October 2021 where we reported on the Directive including a DETE public consultation on the Directive. For further technical information and updates please visit the Technical Hub on the Institute website.  

Jan 06, 2023
READ MORE
Sustainability
(?)

Developments in the EU carbon market

  Provisional agreement has been reached by the European Parliament and Council on important legislative proposals of the ‘Fit for 55’ package, the European Union's package of policies to reduce its net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels and to achieve climate neutrality in 2050.  The agreement pertains to the EU's carbon market, and plans to further reduce emissions and address their social impacts. The proposals aim to: Strengthen the EU Emissions Trading System (ETS). The EU ETS is a cornerstone of the EU's policy to combat climate change and its key tool for reducing greenhouse gas emissions cost-effectively. Introduced in 2005 it is the world's first major carbon market and remains the biggest one. It is a cap-and-trade system which requires, among other things, that energy-intensive industries and the power generation sector buy CO2 permits when they pollute. In 2021, installations covered by the EU ETS accounted for around 40% of the EU's total emissions. Negotiators have agreed to raise the overall target to cut emissions in the sectors covered by the ETS from 43% to 62% by 2030 from 2005 levels, and to apply of the ETS to heating, road transport and shipping for effective economy-wide climate action. Gradually phase out free emission allowances to certain enterprises and phase in the Carbon Border Adjustment Mechanism (CBAM) between 2026 and 2034 for the sectors covered. The CBAM is the EU’s tool to put a fair price on the carbon emitted during the production of carbon intensive goods that are entering the EU, and to encourage cleaner industrial production in non-EU countries. Establish a Social Climate Fund to protect and support vulnerable households, micro-enterprises and transport users from rising CO2 costs. The deal also includes shipping emissions in the EU ETS, making the EU the first jurisdiction to put an explicit carbon price on emissions from the maritime sector, and increases the size of the Innovation and Modernisation Funds. European Commissioner for Financial Services, Financial Stability and Capital Mairead McGuinness, described the provisional deal as "a really significant development” and “a massive transformation of the way we live, work and play.” On formal adoption by the European Parliament and Council, the new legislation can be published in the Official Journal of the Union and enter into force.

Jan 05, 2023
READ MORE
Sustainability
(?)

Ireland's Climate Action Plan 2023

  The Irish Government has published its Climate Action Plan 2023 which aims to deliver new jobs and a thriving, green economy for current and future generations. Other benefits include warmer homes, cheaper electricity, better transport, vibrant and resilient communities, biodiversity-rich landscapes and improved health. The plan, which builds on previous Climate Action Plans sets out how Ireland will accelerate the action required to respond to the climate crisis, putting climate solutions at the centre of Ireland’s social and economic development. It is the framework through which the Government intends to meet the legally-binding emissions reductions targets set out in the Climate Action and Low Carbon Development Acts, and the economy-wide carbon budgets and sectoral ceilings agreed in July 2022 to set down limits on the amount of greenhouse gases that Ireland must not surpass over three five-year cycles. Changing the systems that shape how we live, work, get around and produce food is required to meet these targets, which are a key pillar of the Programme for Government. Key measures of the plan involve: a rapid scaling up of the transition to renewables, with enough renewable electricity to power every home and business in the country by 2030; a dramatic change to Ireland’s transport system with more buses, electric cars and active travel (walking, cycling and public transport); ambitious home and business retrofitting and climate-based construction, and 500,000 homes retrofitted to BER B2 by 2030; and innovative systems that will protect and support family farms to diversify their income streams, with tillage farming to cover up to 400,000 hectares by 2030. Industry is identified as one of the six vital, high-impact sectors which will have to reduce emissions. Industry accounted for 10.2 percent of Ireland’s greenhouse gas emissions in 2021. Under the Plan it is required to reduce its emissions by 35 percent, by changing how goods and services are produced, consumed and designed. Also required is a ‘decoupling’ of the links between fossil fuel use and economic progress. An Annex to the Climate Action Plan, outlining more detail on the Plan’s actions, will be published early in 2023.

Jan 05, 2023
READ MORE
Sustainability
(?)

Biodiversity – a look at the numbers

  A landmark UN Agreement was reached on 19 December 2022 to protect biodiversity and create a shared future for all life on Earth. It is being called the 'Paris Agreement' of nature, likening it to similar agreement in 2015 which changed the world's direction on managing climate change. Biodiversity is the variety of life on earth. It includes all the different types of living things and habitats. It is often referred to as the ‘web of life’. Our societies and economies depend on it. It is rapidly rising up the corporate agenda as more and more companies understand the need to protect it. Here are some of the numbers for biodiversity now: 4 The number of goals included under the new landmark UN Agreement to protect biodiversity (i.e. the web of life on earth). 23 The number of targets under the new Agreement. 30 percent The percentage of Earth’s land and water that 195 nations have now agreed to protect and restore by 2030, making it the ‘30x30 goal’. $44 trillion The amount generated by industries dependant on nature, according to the World Economic Forum. $13 trillion/15 percent Amount generated by industries highly dependent on nature, and the percentage of global GDP this represents. $37 trillion/37 percent Amount generated by industries moderately dependent on nature and the percentage of global GDP this represents. 50 percent The agreed percentage reduction by 2030 of risk from pesticides. 50 percent The agreed percentage reduction by 2030 of nutrients lost to the environment. 50 percent The agreed percentage reduction by 2030 of new invasive species introduced and established. 30 The age of the Global Environmental Facility, which will now create a new Global Biodiversity Framework Fund through which rich nations will pay poor nations to support replacing biodiversity. $30 billion The amount rich countries have pledged to pay per year to poor countries to support biodiversity. $200 billion The amount of finance to be mobilised per year for biodiversity from all sources, domestic, international – both public and private. $500 billion The amount of subsidies harmful to biodiversity that will be eliminated per year by 2030. $700 billion The estimated annual financing gap that exists for the protection of natural systems. 8 billion The number of humans on the planet now, more than double since 1970. 69 percent The decline in animal population during that time. 75 percent The percentage of land fundamentally altered during that time. 66 percent The percentage of oceans negatively affected during that time. 80 percent The percentage of lost wetlands during that time – these act as both habitats and ‘sinks’ to store carbon and stop it doing harm. $3 trillion The combined asset value of a group of investors which launched a campaign to pressure the companies they own to do more to fight the decline in biodiversity. $650 million The amount investors have committed to two so-called natural capital funds backed by HSBC Asset Management. Zero The pricing of natural assets by Wall Street for the past 150 years, according to David Craig, co-Chair of the Taskforce for Nature-Related Financial Disclosures (TFND). Some announcements made during the Biodiversity COP The International Sustainability Standards Board (ISSB) announced it would define ‘sustainability’ as ‘inextricably’ linked to nature in its standards.   MSCI, the world’s largest ESG rating company, announced it would launch metrics for biodiversity similar to their environment, social and governance criteria.   A group of institutional investors announced the formation of a new global engagement initiative to mobilise investors to drive urgent action on the nature-related risks and dependencies in the companies they own. Nature Action 100 will identify the private sector actions that need to be undertaken to protect and restore nature and will seek to catalyse these actions via investor-company engagements.   A new Global Biodiversity Framework Fund will be established under the Global Environment Facility and will be open to financing from all sources to protect the most vulnerable countries and the most biodiverse. A recap on COP15 COP stands for ‘Conference of the Parties’. It refers to the meetings by signatories to United Nations conventions. The most famous COP is the ‘Climate COP’. This is the annual the summit attended by the countries that signed the United Nations Framework Convention on Climate Change (UNFCCC). The most recent ‘Climate COP’ was COP27, hosted in November 2022 in Egypt. ‘Biodiversity COPs’ are meetings of the signatories to the United Nations Convention on Biological Diversity. The fifteenth such meeting took place from 7-19 December 2022 in Montreal, Canada, hence the name ‘COP15’. At COP15 governments from around the world came together to agree on a new set of goals to guide global action through 2030 to halt and reverse nature loss. The catastrophic loss of nature has not received the same media attention as climate change, but it is equally critical and must be resolved. It is impossible to effectively tackle either climate change or biodiversity loss without tackling both at the same time. A quick look at biodiversity Biodiversity is the variety of life on earth. It includes humans, animals, plants and all the other lifeforms which interact and depend on each other to survive. Everything depends on nature, including business. Biodiversity on Earth is under enormous risk, mostly due to human activity. The loss of biodiversity must be halted and reversed so humanity can survive and thrive. What is the agreement called? The agreement made at COP15 is called the Montreal-Kumning Global Biodiversity Framework (or the ‘Montreal-Kumning Agreement’ for short), after the cities in which it took place.   COP15 was originally supposed to take place in Kumning in China but was delayed due to COVID-19. In the end it was co-hosted by Montreal and Kumning. What is in the Agreement? The ‘Montreal-Kumning Agreement’ contains global goals and targets to protect and restore nature for current and future generations. It aims to accelerate ambitious policies around the world and mobilise financing for biodiversity from all sources. It is seen as significant because it is seen by some as being as important for nature as the Paris Agreement’s 1.5°C goal was for climate. It also acknowledges the role of indigenous and local communities in achieving any nature-related goals. What’s next? Before the next COP in Saudi Arabia in 2024, all countries will have to prepare updated National Biodiversity Strategies and Action Plans as well as National Biodiversity Finance Strategies. What they said “At an institutional level, the train has left the station in any case because financial institutions are increasingly aware that nature risk is sitting on their balance sheets.” Tony Goldner, Executive Director of the Taskforce on Nature-Related Financial Disclosures describing how a number of countries and financial firms are already moving toward mandatory disclosure with greater ambition than the final text suggests, where it says that countries should “encourage and enable” businesses to monitor, assess and disclose how they affect and are affected by biodiversity without making this process mandatory. “The agreement reached at COP15 is a landmark deal to protect nature, restore ecosystems and keep our planet liveable. This is about our very survival: humanity has no future on a dead planet.” Frans Timmermans, Executive Vice-President for the European Green Deal Articles Why is Wall Street so hot for biodiversity right now? (Bloomberg) Cop15: Five key developments as significant biodiversity agreement reached: “Ultimately, major businesses will be expected to outline how they are contributing to a nature-positive world.” (Irish Times)   Find more on biodiversity and what it means for accountants at the Chartered Accountants Ireland Sustainability Centre resources page on Accounting for Nature.   

Jan 05, 2023
READ MORE

Good luck to students sitting exams this week

Best wishes to all our students sitting exams over the next few days. FAE Core and Elective examinations take place on Thursday and Friday, and then on Saturday, over 1,500 CAP2 students will sit the Financial Reporting interim assessment. If members or students have any questions about these sittings, please contact the FAE exams team or CAP2 exams team as relevant.

Jan 04, 2023
READ MORE
...11121314151617181920...

The latest news to your inbox

Useful links

  • Current students
  • Becoming a student
  • Knowledge centre
  • Shop
  • District societies

Get in touch

Dublin HQ

Chartered Accountants
House, 47-49 Pearse St,
Dublin 2, D02 YN40, Ireland

TEL: +353 1 637 7200
Belfast HQ

The Linenhall
32-38 Linenhall Street, Belfast,
Antrim, BT2 8BG, United Kingdom

TEL: +44 28 9043 5840

Connect with us

Something wrong?

Is the website not looking right/working right for you?
Browser support
CAW Footer Logo-min
GAA Footer Logo-min
CCAB-I Footer Logo-min
ABN_Logo-min

© Copyright Chartered Accountants Ireland 2020. All Rights Reserved.

☰
  • Terms & conditions
  • Privacy statement
  • Event privacy notice
  • Sitemap
LOADING...

Please wait while the page loads.