As previously reported, Revenue has launched a public consultation on Value-Added Tax (VAT) modernisation. Revenue’s objective is to introduce real-time digital transaction-level reporting for business-to-business (B2B) and business-to-government (B2G) trade, supported by mandatory electronic invoicing (e-invoicing) for such transactions. The proposed changes would be significant for all businesses, requiring changes not only to their VAT processes but to their wider finance and systems infrastructure.  The consultation opened on 13 October 2023 and closes on 12 January 2024. The Institute, under the auspices of the CCAB-I, is responding to this consultation. Members wishing to provide input can email us.  This consultation phase concentrates on B2B and B2G reporting. It does not consider Business to Customer (B2C) transactions, nor does it look at other matters, such as the approach to VAT payment/repayments and accounting for VAT. These will be among the topics covered in future consultations. Revenue is interested in the views of all businesses and their agents, software providers, accountants, bookkeepers, representative bodies, and other stakeholders regarding the development of a new real-time digital VAT reporting system. The consultation provides a list of questions for consideration. The questions are not exhaustive, and views are welcome on some or all of the questions and any other relevant matters. The questions asked are summarised below: What are your views on the proposal to introduce real-time reporting for B2B and B2G transactions?   What matters should be considered in planning for a transition to a new VAT Reporting system?   If your business is currently subject to a VAT reporting programme in another EU or non-EU country, can you please share best practice, recommendations or lessons learnt?   Have you any observations, concerns or recommendations on a move to mandatory electronic invoicing for B2B & B2G domestic VAT transactions?   Revenue is particularly interested in hearing views from businesses that are already engaged in e-invoicing Public Bodies within Ireland or engaged in B2B e-invoicing throughout Europe and beyond. How did you prepare and what challenges prevailed in your preparations for e-invoicing?   What suggestions would you offer in Ireland’s arrangements for a mandatory B2B and B2G e-invoicing programme?   Revenue is cognisant that small businesses may have different perspectives and requirements to large businesses, so what information prompts would you find useful for businesses in completing the VAT return?

Revenue is holding further online webinars this afternoon at 4pm and on Thursday 30 November through Eventbrite which aim to give an overview of the Enhanced Reporting Requirements (ERR) for certain expenses and benefits paid to employees or directors which are scheduled to commence from 1 January 2024. A recording of the Enhanced Reporting Requirements webinar is also available for viewing on Revenue’s website. If you would like to attend one of these webinars: Go to www.revenue.ie/err; Select the link to Revenue’s ‘Eventbrite webpage’; and Follow the on-screen instructions to book your ticket.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The latest Trader Support Service bulletin is also available. The Secretary of State for Northern Ireland recently gave evidence on the Windsor Framework to the House of Lords Sub-Committee and the House of Commons Northern Ireland Affairs Committee. Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:-  Appendix 2 C21e: Data Element 1/11: Additional Procedure Codes;  Notices made under the Customs (Northern Ireland) (EU Exit) Regulations 2020;  List of customs training providers;  Reference document for authorised use: eligible goods and authorised uses;  Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020; and  Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020. 

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.

The consolidation underway in the global accountancy sector is set to continue in the New Year, driven by several factors, writes Mark Butler The global accountancy sector is experiencing a wave of consolidation driven by advances in technology, regulatory developments, succession challenges and the need for firms to enhance their service offering. Larger firms are seeking to increase their market share and capabilities by merging with or acquiring smaller, specialised operators. Hence, we are seeing more consolidation driven partly by the need to embrace digital transformation. This means that the traditional model of individual client acquisition is giving way to a more interconnected, specialist-driven model. Embracing digital tools and diverse distribution channels is becoming increasingly important for accountancy firms that want to stay competitive.  In 2024, we can expect to see a further rise in strategic mergers and greater emphasis on cultural alignment post-merger. Cultural alignment in mergers Merging firms must prioritise cultural alignment to ensure a smooth transition and harmonious collaboration. The success of a merger hinges on the compatibility of organisational cultures, values and work styles. This is especially true in Ireland, where the close-knit business community values relationships and a shared ethos. Client-first approach In Ireland’s accountancy sector, engagement and expertise are crucial for clients and younger professionals seeking to build their career. Being part of a firm where decisions are made locally provides a sense of identity and contributes to the long-term commitment of the merging partners. This trend is particularly evident as younger professionals seek alignment with firms that share their values. Strategic mergers for career growth Younger accounting professionals in Ireland are increasingly aware of the options available to them for career progression, and the potential impact mergers can have on their career trajectory. A merger with the right firm can help to enhance career prospects, leverage a broader client base, and access additional resources. Access to an international network is key to forward-thinking firms keen to ensure they retain clients as they in turn need access to global support.    Leadership trends In addition to digitalisation, consolidation and strategic mergers, firms also need to prioritise the recruitment of leaders who have the multifaceted skills to adapt to the evolving needs of the accountancy sector. Recruiting multifaceted leaders Accountancy firms should actively recruit leaders who have additional skills over and above core technical requirements – such as business development and innovation, for example. The ability of professionals to be willing and open to widening their skill base can help to ensure a firm's agility and adaptability in a rapidly changing environment. Cultivating leaders To drive ongoing growth, a clear view of the market is essential to ensure real, meaningful engagement with a firm’s target market. This targeted leadership approach ensures a deep understanding of evolving client needs and industry trends and, when done well over a sustained period of time, can yield significant benefits. Business development Emphasising business development as a core requirement for professionals leading specific functions within the firm is crucial. Growth doesn’t happen accidentally. Firms focusing on effective pipeline management for recurring revenue and project work tend to maximise opportunities, aligning business development strategies with growth objectives. Thriving in an evolving landscape The accountancy sector is undergoing transformation, led by consolidation, strategic mergers and digitalisation. Professionals and firms that prioritise cultural alignment and strategic growth strategies will likely thrive in this evolving landscape. Embracing change and investing in the right talent and technologies will be essential to navigating the challenges and opportunities that lie ahead and ensuring sustained success for accountancy practices in the future. Mark Butler is Managing Partner at HLB Ireland

Geopolitical uncertainty is reshaping boardroom priorities and acquiring the right expertise is crucial for strategic resilience, writes Dan Byrne Geopolitical risk: Is your board talking about it? If so, do they know how to handle it? The harsh reality is that many companies can’t do so properly. However, stakeholders are rarely patient when it comes to geopolitics. When something happens, they want a response from your corporate leadership.  The last thing your board needs to be is unaware of how to handle a situation, what to say, and how to adapt your strategy to changing global events. The challenge is processing that it’s all happening at once.  The news cycle is now dominated by the Israel-Hamas war. Before this started, the spotlight was on the Russian invasion of Ukraine and, before that, the chaotic US withdrawal from Afghanistan.  Meanwhile, we’ve got tensions between the West and China, the right-wing backlash against Brazilian and US elections, and unresolved Brexit issues – not to mention the protracted conflicts that are now so ingrained in the fabric of modern geopolitics. Every geopolitical crisis begins a new chapter of geopolitical pressure in corporate playbooks. The importance of geopolitical risk Assessing geopolitical risk is essential. It’s not going away and, depending on your company, it could be crucial to your strategy.  This doesn’t have to be direct – your company’s stance on a particular issue, for example. It can also be indirect – such as the businesses you work with within your supply chain. Many American companies have been shifting their manufacturing from China to other locations, such as Vietnam, out of fear that Chinese authorities could disrupt their business at the drop of a hat. Corporate leaders will be prodded by investors wanting to know if their company can survive through sanctions or consumers wanting to see their response to escalating conflict. The storm of questions will come; the challenge is how best to weather it. Expertise needed Experts in geopolitical risk will have the following skills: A deep understanding of corporate strategy and risk; Knowledge of global affairs, new or potential conflicts with global impacts, the intricacies of trade sanctions and the knock-on effects of government changes on international relations; and The ability to navigate through substantial geopolitical fallouts. The hard part is finding this expertise. Finding the right candidate to fill a board seat depends on multiple factors, like the availability of talent, training, networks, and an alignment of values. In some situations, this is a heavy ask.  It’s also worth noting that the market for geopolitical expertise is highly active right now as companies realise that they need to be prepared. Playing the long game Organisations should realise that the quest for geopolitical experience for your board may be a long game.  It can take time to find the talent that works well for your business – and it’s time that stakeholders may not always give you, pushing you for an answer and refusing to accept that you might need more time. That’s why it is essential to start now on geopolitical expertise if you haven’t already. If it feels like you’re playing catch-up, bear in mind that this won’t always be the case. Eventually, you will have the solid knowledge you need on your board to help you develop thorough answers to complex questions.  In reality, the world always moves faster than corporate governance is comfortable with, so it’s better to get ahead. Dan Byrne is a content writer at The Corporate Governance Institute

Navigating the intricate blend of personal and professional dynamics in family businesses presents unique challenges. Emma Richmond explores effective strategies for success and harmony By their nature, family businesses are a unique blend of personal dynamics and professional responsibilities. When an employee complains that the CEO’s daughter has been bullying them or an uncle has given himself a secret pay raise, it can become a significantly bigger issue for a family business than for any other. While allegations of bullying and financial impropriety can arise in any business, dealing with them in a family business can be particularly tricky – as you try to address the issues while also attending the annual family picnic, for example. There are many positives to a family business, however, such as shared values, deep trust, and long-term commitment. Still, we cannot deny that they face unique and added challenges. Being prepared for these challenges and putting in place the right structures can help to strike a balance and ensure the overall success of your family business. Here’s how to do it: Family versus professional roles One of the most common challenges in family businesses is distinguishing between family and professional roles. It can be difficult for an older brother to take instruction from a younger sister or an aunt to take instruction from a nephew. The very dynamic of a family business means that members wear multiple hats, serving as both relatives and employees or managers. These overlapping roles can lead to blurred boundaries and potential conflicts of interest. Establishing clear guidelines and communication channels that foster professionalism and respect is crucial, ensuring that personal relationships do not overshadow business decisions. It is also important to clearly document roles and responsibilities in employment contracts so that there is clarity on all sides. Succession planning and leadership Succession planning is critical in family businesses. Determining who will take over leadership roles and ensuring a smooth transition requires careful consideration. Emotions and family dynamics can complicate this process, leading to disagreements, power struggles, and potential talent gaps. Creating a structured succession plan that includes objective criteria for selecting successors, open communication, and opportunities for non-family members to contribute to the company’s growth is essential. As with all recruitment and promotions, a clear and transparent process can help to avoid conflicts. Managing performance and meritocracy Maintaining a fair and merit-based performance evaluation system is crucial for the long-term success of any business. However, in family businesses, there can be a perception of favouritism or nepotism, particularly if family members receive preferential treatment or promotions based on their surname rather than their abilities. Implementing transparent performance evaluation processes and detailing this in a policy, providing developmental opportunities for all employees, and actively encouraging a culture of recognition can help mitigate such concerns. Conflict resolution and communication Conflicts are inevitable in any workplace, but they can be especially complex in family businesses due to existing personal relationships. Disagreements among family members can quickly escalate, affecting work dynamics and family harmony. Effective conflict resolution strategies, such as regular family meetings, mediation, and open and honest communication, can help to address conflicts promptly and maintain a harmonious work environment. Retaining and attracting non-family employees Family businesses often face challenges in attracting and retaining non-family employees. These employees may perceive limited growth opportunities or feel excluded from key decision-making processes. To counter this, family businesses should: foster a culture that values and respects the contributions of non-family employees; ·offer competitive compensation packages; provide opportunities for career growth; and establish transparent promotion processes based on merit rather than familial ties. More often than not, non-family employees will embrace the culture of trust and shared values as demonstrated by the family members themselves, which can in itself create a very loyal employee. Maintaining balance Managing issues in family businesses requires a delicate balance between preserving family dynamics and fostering a professional work environment. By addressing the challenges of family roles, succession planning, performance evaluation, conflict resolution, and employee retention, family businesses can navigate these issues effectively and thrive in the long term. Clear employment contracts and policies will go a long way to maintaining a healthy and successful balance between family and business in these unique organisations. Emma Richmond is a partner with Whitney Moore

  Chartered Accountants Ireland is partnering with Climate Finance Week Ireland to deliver a webinar on the Corporate Sustainability Reporting Directive (CSRD) and its implications for SMEs in value chains. With effect from financial year beginning on or after 1 January 2024, companies in Ireland will begin reporting under the CSRD (and as a result, the European Sustainability Reporting Standards ‘ESRS’). Drawing on our speaker’s expert knowledge, the webinar will first describe the CSRD and the ESRS.  This will be followed by a panel discussion, on how the financial services sector is transforming its own environment, social and governance profile, and the impact this will have on customers along the value chain. Building on the concept “you’re in scope because they’re in scope”, the speakers will discuss ways for SMEs to prepare for the potential impact of the Corporate Sustainability Reporting Directive. Speakers: Dee Moran - Professional Accountancy Lead, Chartered Accountants Ireland David Connolly - Senior Manager, EY Climate Change and Sustainability Services Donna Wilson - Head of ESG Transformation, AIB (Host) Susan Rossney – Sustainability Officer, Chartered Accountants Ireland Sign up here: https://www.climatefinanceweek.ie/agenda/thursday-23rd-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.

This week, 6-10 November 2023, is Charity Trustees’ Week, an opportunity to acknowledge the contribution of volunteer trustees and celebrate their valuable work in the governance and leadership of charities.   We wish to acknowledge the enormous contribution of Institute members, many of whom contribute to the charity sector as managers, employees, trustees, auditors, professional advisors, volunteers, regulators and, of course, as donors.  On 16 November, Chartered Accountants House hosted the awards ceremony for the annual Good Governance Awards for non-profit organisations. We are delighted to again partner with Carmichael for this important initiative that recognises and encourages good governance practice by charities and other non-profits in Ireland. All entrants receive feedback from a small army of volunteers, including 76 experienced and expert assessors and judges, and eight accountancy firms. Over 200 people registered to attend the awards ceremony.  Opening the event, Deputy President of Chartered Accountants Ireland, Barry Doyle said “The charity and non-profit sector is of huge benefit to our whole society. It provides services to the vulnerable, fills a social need, and progresses sports, arts and recreation initiatives across the country. Many within it couldn’t function without donations from the public. By championing accountability, good governance, and transparency, the sector can ensure that public funding as well as charitable donations remain forthcoming.” Commenting on the awards, Níall Fitzgerald, Head of Ethics and Governance, Chartered Accountants Ireland, and an awards judge, observed: “The quality of governance and reporting remains high, and there is evidence that entrants are implementing feedback received from the awards in earlier years. There are often narrow margins between winners and runner ups. In these situations, the winner often gains an edge through a combination of clear and concise storytelling that demonstrates the impact of the organisation and the challenges it faces, transparent disclosure of the organisation’s approach to risk management and how this is aligned with its vision, mission and values.” Consistent with last year, the higher-scoring entrants are reporting beyond minimum requirements on issues like diversity, equity and inclusion, and also acknowledging the social and environmental impact of their work on beneficiaries, and society as a whole, for example aligning activities with the UN Sustainable Development Goals, or providing some insight on the organisation’s carbon footprint.” Well done to the organisations that demonstrated their commitment to good governance by entering this year’s awards, and congratulations to this year’s winners: Category  Winner  Organisations with annual turnover < €100,000  NiteLine  Organisations with annual turnover €100,000 – €250,000  Kilkenny Volunteer Centre  Organisations with annual turnover €250,000 – €750,000  Spraoi agus Spórt  Organisations with annual turnover €750,000 – €2.5 million  Leave No Trace Ireland  Organisations with annual turnover €2.5 million – €10 million  Barretstown  Organisations with annual turnover €10 million – €50 million  Jigsaw, the National Centre for Youth Mental Health  Organisations with annual turnover > €50 million  Trócaire See more governance news on the Governance Resource Centre

    In this week’s Sustainability/ESG bulletin, read about developments in Ireland’s sustainability energy as work commences on the Celtic Interconnector and the Government publishes its new energy strategy. Also covered are emergency rate reliefs for flood-affected businesses in Northern Ireland, a landmark new EU regulation on methane and fossil fuel operations emissions, a Critical Raw Materials Act, and information on the EU’s fight against human trafficking, resources from IFAC and the usual roundup of newsletters, podcasts, articles and events.   Developments in sustainability energy in Ireland The governments of Ireland and France have signed a Joint Declaration of Intent on ‘Energy Transition Cooperation’, providing a framework for the mutual willingness of both countries to accelerate the decarbonisation of energy systems. The governments also marked the commencement this week of construction work on the Celtic Interconnector, a high-voltage subsea power cable that will link the electricity grids of Ireland and France. It will include enough capacity to power 450,000 homes and will create a direct electricity link from Ireland to the EU. It will also form part of the Offshore Network Development Plan, intended to develop an integrated energy system for European energy markets. The Government also published the Energy Security in Ireland to 2030, outlining its a strategy for a more secure, sustainable, and affordable energy system for Ireland. The strategy focuses on four key pillars: reduced and responsive demand; a renewables-led system; a more resilient system; and robust risk governance in the energy sector. The report is part of an Energy Security Package, containing a range of supplementary analyses, consultations, and reviews, which have informed the recommendations and actions related to energy security. A follow-up to the Energy Security Package will be published in 2030, and every five years thereafter, with implementation monitored by the Government’s Energy Security Group. DETE, Building Better Businesses, Dublin The next event in the Department of Enterprise, Trade and Employment (DETE) ‘Building Better Business’ events will take place on Thursday, 7 December in Dublin. These events aim to help businesses navigate the green journey and boost business performance through digital transformation. The event will take place in the Convention Centre Dublin from 8.30am – 1.30pm. Register here. Emergency rate reliefs – Northern Ireland Emergency rate reliefs are being made available for businesses affected by recent flooding in Northern Ireland. The emergency rate relief measures include 100 percent relief for non-domestic rates on properties that have been flooded as well as support to help businesses temporarily relocate. Find out more. Methane and raw materials: EU legislation The European Parliament and Council have this week provisionally agreed on a landmark new EU Regulation to reduce energy sector methane emissions in Europe and in its global supply chains. Methane, a powerful greenhouse gas, is the second biggest contributor to climate change after carbon dioxide (CO2) and is also a potent air pollutant. The regulation will oblige the fossil gas, oil and coal industry to properly measure, monitor, report and verify their methane emissions according to the highest monitoring standards, and to take action to reduce them. Pending formal adoption, the new legislation will be published in the Official Journal of the Union and will enter into force. Separately the European Commission has welcomed political agreement on the Critical Raw Materials Act. This sets out actions to ensure the EU’s access to a secure, diversified, affordable and sustainable supply of critical raw materials. The EU’s demand for base metals, battery materials, rare earths and more are set to increase exponentially as the EU divests from fossil fuels and turns to clean energy systems which necessitate more minerals. Adaptation Nature-based solutions, such as restoring wetlands in flood-prone areas or green infrastructure to reduce heat island effects in cities, need to be scaled up and expanded to help Europe better cope with the impacts of climate change. This is according to a recently published European Environment Agency (EEA) briefing which assesses the current state of such climate adaptation projects and how they can increase both society resilience and biodiversity. Human trafficking: the EU’s fight against exploitation The European Parliament has updated its information on how the EU is strengthening anti-trafficking rules to respond to changes in the way people are being exploited. Parliament agreed its position in October 2023, which forms the basis for negotiations with EU countries. MEPs are also working on rules aimed at keeping products made using forced labour out of the EU market. The draft regulation would put in place a framework to investigate the use of forced labour in companies’ supply chains. Over $6 Billion needed to strengthen US climate resilience, report finds The United States has released a substantial government report on climate change in the country, Fifth National Climate Assessment, in which it states that more than $6 billion is required to strengthen climate resilience across the country. The report, which was published following a comprehensive survey of climate impacts and risks around the US and runs to over 2,000 pages reportedly states that “How much more the world warms depends on the choices societies make today… “The future is in human hands.” Resources The International Federation of Accountants (IFAC) has released a Small Business Sustainability Checklist (the Checklist) that aims to help small- and medium-sized enterprises (SMEs) maximize the benefits of incorporating sustainability into their strategy and business operations. IFAC has also gathered together a page of resources from its conference with Accountancy Europe Preparing for High-Quality Sustainability Assurance Engagements, including recordings of presentations and discussion, slides, a list of key takeaways as well as plans for the future, and deep dive on ISSA 5000, views from key stakeholders, and other resources. Newsletter The London Business School has issued a new format newsletter as part of the Think at London Business School in which it looks at how important it is for businesses to strive for sustainability. The issue contains insights on COP28, technology solutions to ocean plastic pollution, private equity firms and ESG, and podcast and books. Articles How businesses can start the journey of taking climate action (Business Post) Make your corporate gifts sustainable in 2023 (Accountancy Ireland) How to Fathom Climate Change’s Unfathomable Numbers (Bloomberg Green) EU agrees nature restoration deal that will have far-reaching impact for Ireland (Irish Times) Office recycling bins turn us into monsters (Financial Times) Audit firms risk losing out in race for ESG assurance (ICAEW Insights) Upcoming events   🌟🌟IFSCOE, Climate Finance Week Ireland 2023 Week-long summit. In person and virtual: Monday, 20 November – Friday, 24 November includes: Corporate Sustainability Reporting Directive (CSRD) and Its Implications For SMEs In Supply Chains (Webinar) Thursday, 23 November, 10-11 Dee Moran - Professional Accountancy Lead, Chartered Accountants Ireland David Connolly - Senior Manager, EY Climate Change and Sustainability Services Donna Wilson - Head of ESG Transformation, AIB Virtual: 23 November, 10-11🌟🌟 Chartered Accountants Ireland: Elephant in the Room To mark this year’s Movember, Thrive, along with the Leinster Society, invites you to the unveiling of our Elephant sculpture as part of the mental health initiative, Elephant in the Room. In person: 29 November, 5pm, Chartered Accountant House – Reception Foyer Sustainable Energy Authority of Ireland (SEAI) SME Business Briefing A webinar to learn how your business can save money and energy this year. Virtual: 30 November, 10-11am Innovate UK's showcase for climate tech event in Northern Ireland Innovate UK is delivering a series of 18 'showcase for climate tech' events across the UK until September 2025. Each event focuses on a specific net zero theme or technology area. The Northern Ireland event, run in partnership with Business in the Community NI, will take place in Belfast on 6 December 2023 and will focus on digital solutions for net zero. In person: 6 December, Various Locations (See event listings) DETE, Building Better Businesses, Dublin During 2023, the Department of Enterprise, Trade and Employment (DETE) has run a series of free Building Better Business events across the country to help businesses navigate the green journey and boost business performance through digital transformation. In person: 7 December, The Convention Centre Dublin, 8.30am – 1.30pm.  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 Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 22 November 2023  14.00-15.00/30 Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

Welcome to the series which will introduce members of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I) Insolvency Committee over the coming months. We hope to provide information on the work of the Insolvency Committee and insights into the careers and experience of our Committee members. Today we will hear from 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. Tell us about your career to date and your route to being an Insolvency Practitioner I grew up in a family business along a border village in Co. Monaghan. I was exposed to a business environment from a young age. I graduated with a business qualification and decided to pursue an accountancy qualification through CPA Ireland while working at the Coca-Cola concentrate plant in the early ‘90’s . After qualifying as an accountant, I took up several international roles with the Coca-Cola Company, setting up new operations as financial controller, mainly in the Nordic countries - Norway, Finland, Sweden and Switzerland. This was my first exposure to corporate restructuring including acquiring , reorganising, and downsizing businesses.   The opportunity then arose for me to return to Dublin and work with Microsoft European Operations Centre as a senior business manager. After the Tech bubble crash in the early 2000’s,  I set up a city-centre based Accountancy practice which has now evolved into FM Accountants & Business Advisors. Overtime I diversified the business, as an Insolvency Practitioner, into corporate restructuring under Fitzwilliam Corporate Insolvency. I always had a keen interest in this area. The company specialises in the area of independent expert reports, examinership, members voluntary liquidations and broadening the service level to creditor Liquidations. Completing a diploma in Corporate Restructuring & Insolvency with the Law Society of Ireland 2012, a Diploma in Forensic Accounting &  Commercial mediation enhanced my skillset. This was my circuitous route to becoming an Insolvency Practitioner. Are you where you expected to be in your career? When I started, I did not have a clear career path mapped out. It was the flexibility and mobility of an accountancy qualification that allowed me to build the career that I have today. It enabled me to work in varied industries around the world. That has been of significant benefit and the corner stone for the role as an Insolvency Practitioner in my career to date. Having spent more than a decade working in a multinational environment with both Coca-Cola and Microsoft, I changed career path to set up my own practice . Over the last 20 years , I have repositioned our business model on several occasions based on market needs and client expectations against the background of the economic external environment.   This has led me to the route of an Insolvency Practitioner in which I would argue that the skillset required is as much about problem solving and business recovery focused as its about liquidation or the winding up of companies. This skillset is often overlooked in the context of the work carried out by Insolvency Practitioners. One must pivot in both directions depending on the circumstances.   What was the best career advice you got along the way? While I was working in the Nordic countries with Coca-Cola, I was lucky to have  had a trusted  mentor,  a senior colleague from Iceland. He encouraged his key management team to be business leaders. His guiding principles were to be result-driven, don’t get lost in the detail and look beyond the numbers using intelligence coupled with the subject matter knowledge. This is what I would advise any aspiring Insolvency Practitioner. As a professional, you need to understand your limitations while recognising the commercial aspects of decision-making. It is about developing your skills to evaluate situations based on a limited amount of information which can give a competitive advantage. Recognise the difference between intelligence and knowledge is necessary to grow your career in any business. As Practitioners, we can rely too much on the more analytical side of the brain. We are not always aware of the importance of judgement and creativity in our work. Most important is to be yourself. Don’t oversell your ability to meet expectations. Prospective clients will appreciate the honesty. It is equally important to let your results speak for themselves. Be realistic about your ability to deliver and keep your ego in check. Based on your own experience, what advice do you have for young professionals looking to build a career in corporate Insolvency? My top tip for any recent graduate would be to consider a professional qualification, whether it be in Accounting or Law. It will give you a platform to build your skillset as an Insolvency Practitioner and  grant you the flexibility to pursue varied career paths within the corporate restructuring and  Insolvency arena. Work in an environment that builds a culture of learning and development within your team. Encouraging transparency and even frankness will avoid misunderstandings. It helps everyone get to the crux of the issue, particularly when there is not always a black and white scenario. To a degree Insolvency Practitioners are trained to analyse numbers based on a formulaic approach. While a deep understanding of a company’s balance sheet and trading performance of a business is a key ingredient of a Practitioner’s skillset, my advice is to develop the ability to look beyond the numbers and learn to make intuitive decisions. The Insolvency profession is becoming more diverse with the emergence of new technologies like artificial intelligence and robotic process automation. These technologies over time will give professionals more time to provide value-added business advisory and strategic services to their employers and clients. Lastly, I believe in the power of positivity and the importance of managing failure as well as success. When commitment and effort has been to the fore, it should be recognised, even if something has gone wrong. This approach will instil confidence and resilience. How would you define your work style, and how has this evolved over the years? I try to structure my work in a strategic way by prioritising the key tasks and eliminating possible risk early on. I focus on the objective and the ‘roadmap’ of how we are going to execute the strategy. Over the years, based on experience, you learn to manage risk and the downside, looking at the longer-term strategy while also being conscious of your limitations. Delegate. You can’t do everything yourself. Empower and encourage your team, giving them responsibility and ownership while holding them accountable. In terms of managing teams and individuals, what are your insights and views? Prioritise your team’s growth and development, looking beyond your own needs. If you don’t delegate, you will not scale your business. Let’s face it, today’s business world is set on a global stage. Technology is playing just a small role in making our world smaller. This has granted companies of all sizes the freedom to recruit the best people, wherever they are. Millennials are shaping the workplaces of today and the future. Equally, if not more important, is to promote and embrace gender equality in the workplace. Both culture and gender diversity are what shapes us. It is the reason we hold certain beliefs and diversity influences how we behave and is what gives us our identity. Historically, the trend in Insolvency has been male dominated. However, this trend has begun to reverse over the last number of years. In my view, both culture and gender diversity should be prioritised over the next decade to develop the profession further and attract new talent as a rewarding career path. It is a key priority and objective at present for the CCAB-I Insolvency Committee.     What about communication and negotiating the typical ups and downs of working life? Key to effective communication is avoiding the ‘take it or leave it’ approach. It is about being persuasive, so that people can adapt. You also must stay engaged, particularly when someone doesn’t buy into your approach. It may take time to get to the position you want while recognising the opinions and perspectives of those around you. Be persuasive and independent in your thinking, but don’t be overly opinionated. Make your points based on evidence and deep understanding while simplifying the message. Has networking played an important part in your career? All consultancy and professional businesses are essentially people focused. We all like to do business with someone we know, like and trust. So networking and making personal connections are a crucial part of the job. Most important is to be yourself. Don’t oversell your ability to meet expectations. Prospective clients will appreciate the honesty. What is the current position with regards to the level of insolvencies in Ireland? Based on the latest industry data, there has been a 33% increase in insolvencies in the year-to-date compared to the first three quarters of 2022. The topical discussion amongst Practitioners at present is the Revenue debt warehousing as it needs to be phased out by May next year. Recently the Minister for Finance confirmed that, as of the end of September 2023, almost 94 per cent of that debt has been repaid, leaving €1.87 billion still warehoused through the scheme. There is an expectation that the volume of work for Insolvency Practitioners will increase significantly over the coming months as these debt positions will need to be crystallised. Against the background of rising interest rates, a global economic downturn in certain sectors, some legacy taxation debt coupled with highly geared property debt certainly will have an impact on several businesses which will shift into insolvency certainly in Q1 /Q2 of next year in my view.  Disclaimer: The views of contributors to this series of articles may differ from official Institute and Consultative Committee of Accountancy Bodies - Ireland (CCAB-I) policies and are not necessarily endorsed by the Institute of Chartered Accountants in Ireland, its Council, its committees or any other person or entity associated with the Institute. The publishers, editor, and authors accept no responsibility for any errors or omissions or any loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in this publication.