The Deloitte Future of Corporate Reporting Conference series will provide crucial advice and insights for businesses on the latest trends and developments in the field Working towards the future is at the heart of business across every sector – and this involves adopting and maintaining a successful sustainability plan, while also moving forward with the times and keeping abreast of the ever-changing world we live in. Leveraging our global capabilities and alert to these important issues, Deloitte is gearing up to host the Future of Corporate Reporting Conference at a number of locations across the country throughout November.  Offering up to 3.5 hours Continuing Professional Development (CPD), the conference will be held at: The Royal Convention Centre in Dublin on 15 November; The Crowne Plaza in Belfast on 21 November; The Kingsley Hotel in Cork on 23 November; The Absolute Hotel in Limerick on 28 November, and The G Hotel in Galway on 30 November.  Key topics in the spotlight at these events will include: Reporting on corporate sustainability, including discussions on IFRS S1 and S2, SEC plans and ESRSs; The potential impacts of artificial intelligence, such as ChatGPT; Updates on Financial Reporting and Corporate Tax; Examining recent corporate governance proposals, including how to achieve the right corporate culture.  Crucial topics for business Michelle Byrne, Partner at Deloitte Audit and Assurance Practice and Financial Reporting Advisory Lead, says these topics are of the utmost interest to businesses.  “Climate is still very much at the forefront of society, boardroom and investors, discussions so, given the volume of regulations coming down the tracks, we will provide practical insights from our experience of supporting clients here in Ireland and globally on the impact this is having on organisations to ensure clients are ready for the changes,” Byrne says.  “To share these insights, we will have a panel discussion from our sustainability team, led by Glenn Gillard, Head of Sustainability, Aoife Connaughton, Strategy and Decarbonisation Director, Marc Aboud, Risk and Regulation Director, Orla Dunbar, Data and Technology Director, and Aisling Kirby Reporting and Assurance Manager.”   There will be a focus on the potential implications of artificial intelligence (AI tools), such as ChatGPT, on financial and sustainability reporting with future-looking sessions focusing on the ways in which they might impact the role of the Chief Financial Officer and wider finance teams.  “This is a rapidly evolving area and Emmanuel Adeleke, Lead AI and Data Partner, will share his insights and real examples as to how AI is impacting finance teams and, particularly, how it is impacting financial and sustainability reporting,” Byrne says.  “Also, given the ever-changing landscape at boardroom level, Melissa Scully, Risk Advisory Partner, will lead a session covering UK developments and consultation on the changing corporate governance environment. “She will look at how these might impact the boardroom in both Irish and UK companies. She will cover the UK Code, new audit committee standard and the importance of culture and enhancing relationships to ensure positive challenge between the executive and board. “And, as corporate tax is always leading the headlines, this year’s session, led by Tax Partner Tom Maguire, will provide attendees with information they need to know about corporate tax changes, but with a particular focus on Pillar II. I will also join Tom to share insights as to what Pillar II means for tax accounting.” Regulatory developments In addition to this stellar line up, Oliver Holt, National Director – Financial Reporting, and Megan Haldane, Financial Reporting Advisory Director, will explore the must-know IFRS developments for 2022 and beyond. This will cover some of the reporting decisions and messages emerging from accounting enforcers, such as the Irish Auditing and Accounting Supervisory Authority, the Financial Reporting Council and the European Securities and Markets Authority.  “They will be joined by Aislinn Brennan, Treasury Assurance Director, who will signpost some of the accounting consequences of the evolving power purchase arrangements market,” Byrne says. “Brian Murphy, Audit and Assurance Partner, and Dympna Cassidy, Financial Reporting Advisory Director, will also discuss the dramatic changes on the way with the proposed introduction of FRED 82, which will incorporate a simplified IFRS 15 Revenue from contracts with customers and IFRS 16 Leases into the world of Irish GAAP reporters.” The Financial Reporting Advisory Team Lead says that Irish companies cannot afford any delay in their consideration of how the latest changes will impact their work.  “Given the vast range of changes coming down the pipeline, almost all Irish companies will be impacted in some shape or manner,” Byrne says.  “The huge momentum towards sustainability reporting is considered by many as the most pervasive reporting change for companies for many decades.  “FRED 82 will reach a large volume of Irish GAAP reporters. The proposed amendments will reflect up-to-date IFRS-based solutions by introducing more transparent reporting of lease obligations, as well as a clear five-step model for determining the recognition of revenue from all contracts with customers.  “This will bring real challenges around implementation similar to when we saw the introduction of IFRS 15 and IFRS 16.” Pillar II is one of the most significant developments in recent times, Byrne adds, and will have far-reaching implications for certain companies in Ireland in those groups subject to a tax rate of at least 15 percent on profits wherever arising. Economic and political impacts Economic and political impacts have significant knock-on effects on the accounting world, Byrne says.  “What’s happening today is no different, so it is important for companies to be prepared. Currently, many Irish companies will be feeling the effects of high inflation, the continued impact of the Russian/Ukraine war and the impact of interest rate hikes,” she says. “These will impact many aspects of some industries and businesses and will, in turn, have an impact on financial reporting and related financial statement disclosures – a knock-on effect on some entities, raw materials, employee wages and investment/financing decisions, for example.  “From an accounting perspective, high inflation and interest rates will impact fair value measurements, discount rates applied and expected future cash flows.  “So, preparers of financial statements will need to convey, in their financial statements, the current or potential impacts these will have on their business and outline any key judgements or estimates applied. “Equally, due to environmental impacts and rising energy prices, many companies have been looking for alternative ways to reduce their carbon footprint and also reduce their exposure to these increasing and more volatile costs. This has led to a lot of accounting complications as some companies have moved towards power purchase arrangements (PPAs) or virtual PPAs to address these needs. “At Deloitte, we are very conscious to make an impact that matters for our clients and wider society. Attending this conference, you can expect to be well-informed and alerted to the latest developments in corporate reporting for the 2023 financial year.” Interview by Arlene Harris For more information, log on to www.deloitte.ie/corporatereporting

With Zurich, Master Trust directors have access to some of the best governance and risk management experts, framework and tools in the world, says Rose Leonard Founded in Switzerland 150 years ago, the aptly named Zurich is one of the leading Master Trust providers in Ireland and part of Zurich Insurance Group, one of the largest and most experienced insurance companies in the world*.  In addition to being regulated by the Central Bank of Ireland, Zurich Life’s financial strength is underpinned by the strength of the group’s capital position**. Zurich has been operating in Ireland for more than 40 years, so it is no surprise that the provider has long been a trusted name for employers who have come to learn that setting up and managing their employer pension plan with Zurich will be seamless and pain-free.  With a client base spanning local, medium-sized businesses through to large multinational organisations, Zurich has a reputation for designing and implementing employee benefit solutions tailored to suit both employers and their employees.   “We have substantial experience of transitioning assets from single trust pension schemes into the Master Trust,” says Rose Leonard, Head of Corporate Sales and Customer Relationship Management, Zurich.  “Our dedicated onboarding and transition team works with employers to develop a transition plan and project manage the onboarding of their pension scheme. “With ever-changing pensions legislation leading to a need for improved governance, there will be more ongoing demands on employers and their business.  “Employers can rest assured that Zurich has the right structures in place to offer assistance and support throughout the relationship,” says Leonard. Choosing the right provider As a director of the Zurich Ireland Master Trust Dac (ZIMT Dac), Leonard is well-placed to advise both employers and employees on pension schemes.  Your first step, she says, should be to look at “the DNA” of the Master Trust provider and Trustee company you are considering for information on financial strength, governance, risk management capabilities and overall experience in pensions.  “All of the insurance companies in Ireland will score highly in this category and the regulators – the Central Bank of Ireland and Pensions Authority – do a good service for the public in this regard as insurance companies and pension schemes are highly regulated entities,” she says. “They also need to watch out for how the Master Trust Provider will engage as employers want access to good information on their own scheme as well as oversight and deep insights into how things are being managed. After all, it is your workforce who are the beneficiaries, and it is the employer and the member employees who are contributing. “Online access for employers and their employees is important so that you can access information on your scheme easily and at any time. And while, at Zurich, we see technology as essential, we don’t believe that technology alone is the solution – it is the essential enabler to the solution, however.  “Zurich provides Master Trust members and their employers with digital tools so that you can have oversight of your benefits at all times.  “Combined with these tools are our competent people who meet and talk to employers and their employees consistently to facilitate their active engagement with their important benefits,” Leonard says.   Employee well-being Currently, the job market is very much employee-led, with many companies finding it difficult to attract and retain talent***.  To this end, Leonard says it is important for employers to “watch out for the holistic well-being of employees”, including their financial well-being, while also examining how the Master Trust provider can help in this respect. “Mental health issues often start with financial stress when people can’t afford the mortgage anymore or are finding childcare very expensive. The diversity of the workforce also needs to be considered as the needs of international workers may differ from those who plan to stay and settle in Ireland,” she says. The needs of workers who are just starting to accumulate a pension fund may also differ from those who have been contributing for decades and may already have accumulated sizeable pension pots.  “It’s important to engage your Master Trust provider to help with a diverse workforce – to add value to each and every one of your employees, bearing in mind that they are starting from different places,” advises Leonard. “A pension will be one of the most valuable assets a person may have – right up there with their house, if not even more valuable.  “So, in a market where there is intense competition for labour, with employers offering competitive salaries and extra benefits such as free lunches, treats, gift vouchers or gym membership, none of them come near in value to a pension.”     What is a Master Trust? A Master Trust is simply a large pension scheme set up under trust. It differs from traditional company pension schemes in that multiple employers coexist under the one trust deed.  Pensions expert Leonard says that, while this method offers all the benefits of a regular pension held under trust, it also allows the employer to be free of onerous regulation and legal responsibilities. “The directors of the Trust are responsible for safeguarding the assets, and for having a comprehensive framework in place to ensure that the Master Trust is run properly, that they have oversight and influence on all aspects, and it is the directors who are answerable to the regulators,” says Leonard.  It is important for employers to be aware of the financial strength of their Master Trust provider and trustee company, Leonard adds, as this attention to good governance and risk management will help drive better outcomes for members. “The most important aspect, however, is the investment – the default strategy and the ability of the investment manager to drive investment returns,” she says.  Zurich is not the only firm offering services and advice to customers. However, Zurich has the added advantage of a long and reputable track record, something it looks forward to continuing in the future.  “Zurich aims to deliver value to employers and their employees through active investment fund management and it has a long track record of delivering above average returns on investments*,” says Leonard.  “This outperformance, compounded over several years*, has a significant impact on the pension pots members will ultimately have when they retire – and it is all done in a risk-controlled environment.    At Zurich, the directors of the Master Trust have access to some of the best governance and risk management experts, the framework and tools serving one of the biggest insurance companies in the world.*    “Practically all defined contributions, even the largest ones, will move into a Master Trust. If you would like an in-person meeting to discuss your specific scheme, drop me a mail at rose.leonard@zurich.com.” Interview by Arlene Harris Warning: Past performance is not a reliable guide to future performance.  Warning: The value of your investment may go down as well as up.  Warning: If you invest in this product, you may lose some or all of the money you invest.  Warning: Benefits may be affected by changes in currency exchange rates. *Small Actions Can Have Great Impact, Zurich.ie, July 2023 **Zurich Life is owned by Zurich Insurance Company Limited, which has an internationally recognised financial strength rating of AA/stable. Zurich Life Assurance plc is regulated by the Central Bank of Ireland *** Talent Leaders Pulse Report 2023, Talent Summit 2023 

The Institute is currently considering amendments to the Audit Regulations UK.  The proposed amendments would align the Audit Regulations UK more closely with the Institute’s Audit Regulations, Ireland.    The key changes proposed can be summarised as follows: A new requirement for audit-registered sole practices (both individual sole practitioners and single-director corporate practices) to put in place alternate arrangements which would take effect in the event of the death or incapacity of the sole practitioner. Additional material to clarify the obligations of audit firms and responsible individuals (RIs) in relation to continuing professional development requirements (CPD). The ability for the Quality Assurance Committee to impose regulatory penalties on RIs. It is anticipated that the revised Audit Regulations UK would become effective from 1 January 2024 (pending necessary approvals) with a proposed transition period of six months thereafter for compliance with the requirement for audit-registered sole practices (to put in place alternate arrangements). The Audit Regulations UK set out the Institute’s rules for the authorisation and supervision of statutory audit firms and RIs in the UK.  The Audit Regulations UK are issued jointly by Chartered Accountants Ireland (the Institute), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS).  A public consultation is ongoing in relation to the draft revised Audit Regulations UK.  The details of this consultation and the draft revised Audit Regulations UK are available to read here.   Audit firms and RIs registered for audit in the UK by Chartered Accountants Ireland and who wish to provide comments in relation to the draft revised Audit Regulations UK can email those comments to professionalstandards@charteredaccountants.ie

In Irish news, Revenue confirms extended opening hours for the peak Pay & File period and outlines property owners’ obligations in respect of the new Vacant Homes Tax and we bring you an update from last week’s meeting of Main TALC. In UK news, read about the latest elements of the Windsor Framework to take effect and the one-year extension to the Trader Support Service. In International news, the Carbon Border Adjustment Mechanism (CBAM) enters its transitional phase.  Ireland Revenue has published its extended opening hours for the 2023 Pay and File period. Revenue has outlined property owners’ obligations in respect of the new Vacant Homes Tax. Read our update from last week’s meeting of Main TALC. UK Read about the latest elements of the Windsor Framework to take effect and the one-year extension to the Trader Support Service. International The Carbon Border Adjustment Mechanism (CBAM) has entered its transitional phase. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount.

Your Individual Annual Return 2023 is now available for completion online.  Please ensure it is submitted by 31 October 2023. Click here for your Individual Annual Return. Please note, timely completion will ensure that all members in practice are invoiced correctly for 2024 Regulatory Fees.

Minister Dara Calleary, TD has signed the Companies Act 2014 (Section 682) Regulations 2023. The Regulations, which came into effect on 1 October 2023, prescribe a revised Report for use by liquidators when making reports to the Corporate Enforcement Authority under section 682 of the Companies Act 2014. The revised section 682 report should be used for all submissions made from 1 October 2023. The Rules of the Superior Courts (Order 74) 2023 also commenced on 1st October 2023. There are two new questions included: - Question 22 requires the liquidator to confirm whether the directors have demonstrated that they have had regard to the interests of their employees in accordance with the requirements of section 224 of the Companies Act 2014. - Question 32 requires additional information where liquidators are asked to indicate whether they have advised directors, in respect of whom relief is not sought, of the grounds upon which an application to have them restricted will be brought.

The FRC have issued a project update relating to the ongoing periodic review of FRS 102 and FRS 105. In its update, the FRC noted that they received 54 response letters to FRED 82 and they are now preparing final amendments for issue which will take into account the responses received. Earlier this year, the Institute’s Financial Reporting Technical Committee issued a response to FRED 82. The FRC have indicated that they expect to issue the final amendments to FRS 102 and FRS 105 in the first half of 2024, with an expected effective date of periods commencing on or after 1 January 2026 for the changes. This is 1 year later than the date proposed in FRED 82. The FRC are working on amendments to the standards and provided updates on the revenue recognition and lease accounting sections which respondents provided feedback on during the consultation process. They will continue to work towards a “five-step model” for all FRS 102 and 105 preparers, while seeking simplifications to ensure proportionality for micro-entities. In addition to this, they have indicated that they will consider how to ensure that the “on-balance sheet” model of lease accounting under FRS 102 will be proportionate and understandable for FRS 102 preparers of all sizes.

The Institute has responded to the International Accounting Standards Board’s (IASB) request for information relating to IFRS 9 Financial Instruments impairment requirements. The IASB’s request for information begins the post-implementation review of IFRS 9’s impairment requirements and this allows the IASB to assess whether the effects of applying the new requirements on users of financial statements, preparers, auditors and regulators are those the IASB  intended when it developed the requirements. IFRS 9 has been effective for annual periods beginning on or after 1 January 2018. Some of the key points made by the Financial Reporting Technical Committee on behalf of the Institute include; Broadly speaking, the impairment model in IFRS 9 is working as intended and produces relevant and reliable information. There are some areas where users of the standard would benefit from additional guidance and educational material (for example- the definition of credit losses, calculation of expected credit losses on inter-group loans which are repayable on demand and interaction of impairment with other IFRS standards). There is a high cost of applying the impairment requirements to intercompany loans, often with limited benefit due to investors often placing greater reliance on the consolidated financial statements. The simplified approach for trade receivables, contract assets and lease receivables is working well in practice and is widely used. A recommendation that the IASB provide guidance regarding minimum disclosure requirements in IFRS 7 to achieve greater consistency in the information provided. The increasing prevalence of questions arising in relation to ESG risk when applying impairment requirements and the need for more guidance and educational material.

Revenue has published details of its ROS supports and extended opening hours to facilitate and support taxpayers and their agents for the 2023 Pay and File period. Extended support opening hours The ROS Technical Helpdesk, the Collector General’s Division (including ROS Payment Support) and the Income Tax support line will provide the following extended opening hour services for the 2023 peak Income Tax Pay and File period. Date ROS Technical Helpdesk     01-7383699 Business Taxes (Income Tax only)     01-7383630 Collector General's Division (including ROS Payment Support)   01-7383663 Friday, 10 November 2023 09.00 - 17.00 09.30 - 17.00 9:30 - 13:30 Monday, 13 November 2023 09.00 - 20.00 09.30 - 20.00 09.00 - 20.00 Tuesday, 14 November 2023 09.00 - 20.00 09.30 - 20.00 09.00 - 20.00 Wednesday, 15 November 2023 09.00 - 0.00 09.30 - 0.00 09.00 - 20.00   Further information is available in eBrief no.203/23.

Revenue has published a new Tax and Duty Manual on DAC7. The manual provides guidance on the presence and participation of foreign tax officials in administrative enquiries as part of an exchange of information request under DAC7. 

Last week we notified readers that the Institute is meeting with HMRC tomorrow to discuss the 31 October 2023 deadline for using the VAT margin scheme for second hand vehicles purchased from Great Britain and moved to Northern Ireland before 1 May 2023. Sales of such vehicles after the end of the VAT margin scheme on 31 October 2023 will mean that VAT must be charged on the full selling price. These vehicles do not qualify for the VAT related payment scheme which commenced on 1 May 2023. Today is the deadline for providing us with supporting evidence that many of these vehicles are currently unsold and are expected to remain unsold on 31 October 2023. A reminder of the evidence that HMRC is seeking is set out below.  HMRC has requested details or estimates in respect of the following:- The numbers of second-hand vehicles dealers in Northern Ireland had in stock on 1 May 2023 that were sourced from Great Britain;  How many of these remain unsold at present, and their estimated value;  How many are likely to be unsold on 31 October 2023, and their estimated value; and  If there is any category of vehicle that may be particularly affected by having a cut-off date of 31 October 2023 after which the margin scheme could no longer be used.  We recognise that many dealers may not be able to provide all of the detail requested in such a short period of time, especially the category of vehicle, but any information or evidence to support the difficulties being experienced in selling these vehicles would be appreciated.  The meeting will also be an opportunity to discuss the new second-hand motor vehicle VAT related payment scheme. Feedback on the end of the VAT margin scheme and the new VAT related payment scheme should be emailed to the Institute by the end of today Monday 2 October 2023. 

Revenue has published a new Tax and Duty Manual for financial institutions in respect of their reporting obligations under section 891B TCA 1997 and associated regulations.