Revised Public Practice Regulations – effective 1 January 2024 The Institute has issued revised Public Practice Regulations with effect from 1 January 2024.    Institute members engaged in public practice comply with the Public Practice Regulations.  Key revisions are summarised below: Anti-money laundering (AML) supervision: The revised Public Practice Regulations include explicit reference to the Institute’s role as AML supervisor for practising firms.    While firms are familiar with AML supervision and already engage with the Institute in this regard, the revised Public Practice Regulations introduce some new regulatory obligations in this regard.  In particular, the revised Public Practice Regulations: Include a new chapter addressing AML supervision; Define an ‘AML supervised firm’; Require an AML supervised firm to ensure that each of the firm’s principals is either a member of the Institute or has been granted AML affiliate status by 1 January 2025. During 2024 the Institute will engage with the Money Laundering Compliance Principals at AML supervised firms to facilitate compliance with this requirement; Require all AML supervised firms to make a declaration, on behalf of the firm, acknowledging the firm’s obligations under Institute Bye-Laws and Regulations and AML legislation.This declaration will be sought as part of the firm annual return process going forward; Include explicit ongoing fit and proper requirements for beneficial owners, principals and relevant managers at AML supervised firms. Professional indemnity insurance (PII) requirements for authorised investment business firms, Ireland Regulation 7.18A of the Public Practice Regulations reflects a new Central Bank of Ireland requirement for firms authorised by the Institute for investment business (IB) to have specific minimum professional indemnity insurance (PII) which is ringfenced for IB claims.   The Institute has written directly to the IB compliance principals outlining the revised PII requirements.    This topic is covered in more detail in the August edition of the Professional Standards Regulatory Bulletin. Simplified regime for potential ‘dual- PC’ holders Chapter 5 of the revised Public Practice Regulations provides that an Institute member engaged in public practice is exempt from the requirement to hold an Institute practising certificate (PC) where that individual is a member of, and holds a PC from, another specified accountancy body.    While these dual-membership cases are infrequent, the revised approach streamlines regulatory processes between the accountancy bodies, simplifies compliance for individuals and minimises the risk of regulatory gaps or duplication.  Institute PC regime applies only to Ireland and the UK The definition of practising certificate has been revised to state that the Institute’s PC regime applies only to public practice in Ireland and the UK.  This is a clarification and not a change to the Institute’s PC regime.  Where members engage in public practice in jurisdictions other than Ireland or the UK the member complies with any local requirements regarding public practice in that jurisdiction.  Guidance: Revised Public Practice Regulations Guidance is available on the Institute’s website. Previous editions: The revised Public Practice Regulations replace the previous edition of the Public Practice Regulations which remain available to read in the Institute’s online archive of Regulations.  

"Finance is the great enabler of climate action" This was the message of UN Climate Change Executive Secretary Simon Stiell in a speech at a Green Climate Fund event today “Scaling up Access and Impact”.  And it is a key message of this year’s COP, at which a record number of financial executives are attending. Many may be drawn to what Nikita Singhal, co-head of sustainable investment & ESG at Lazard Asset Management, describes as possibly “the greatest alpha-generation or investment-return” in a long time. Singhal  was speaking at the Bloomberg Business Forum at COP28, and was one of several investors who see opportunities for investment returns in action on the twin crises of climate change and biodiversity destruction. “Let's be clear,” said another such investor, Prudential Plc Chair Shriti Vadera, who reminded the Forum “The private sector only does things that are commercial and create a commercial return: they are to preserve the capital of their customers, savers, pensioners and depositors.” Highlights Chair of the IFRS Foundation Trustees, Erkki Liikanen addressed COP28 and reflected on progress since the IFRS Foundation announced the decision to establish the International Sustainability Standards Board at COP26 in 2021.   Export credit agencies, supporting a combined estimated US$120 billion in global trade in 2022, have formed a net-zero alliance. The UN-convened Net-Zero Export Credit Agencies Alliance will be the first net-zero finance alliance comprising public finance institutions. “Public finance has been the missing piece in the net-zero financial landscape,” said Inger Andersen, Executive Director of UNEP. “Export Credit Agencies are in a strong position to deliver more sustainable global trade and to complement the work already being undertaken by the private finance sector”.   Climate Trace the non-profit project has released data “of unprecedented granularity” that shows how countries have been dramatically under-reporting their greenhouse gas emissions;   An 18-month collaboration between leading climate researchers across more than 20 nations has produced a report titled 10 New Insights in Climate Science 2023/2024. The report aims to help inform policy implementation at COP28 and beyond. It warns that humans will increasingly be unable to live in and move from/to places where climate risks continue to rise, and also warns of compound risks which will amplify the climate crisis and increase in uncertainty. Podcast Tripling renewables is one of the goals under discussion at COP28. Find out where more investments are needed and why decarbonizing energy is easier than you think. (Zero)  

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the TALC Collection subcommittee. Among the issues discussed, Revenue provided updates on the implementation of the Enhanced Reporting Requirements for employers, the Debt Warehousing Scheme and the vacant homes tax. Revenue also reminded the group of the costs to which the VAT flat rate farmer scheme applies. Revenue is aware of an issue in the Statement of Net Liabilities process and will be contacting the affected taxpayers.  Enhanced Reporting Requirements for Employers (EER)   Despite the CCAB-I's concerns over the introduction of ERR, Revenue has advised us that the requirements will enter force from 1 January 2024. In the meantime, Revenue intends to go live with the reporting portal in the second week in December. In the meantime, Revenue will continue to hold information webinars up to 14 December 2023 on the new  requirements for employers for agents and employers.   Revenue issued e-Brief 254/23 this morning referencing an update to Revenue’s guidance on the small gift exemption, which include examples of how ERR will apply.   A recent snap poll of our members last week has indicated that 60 percent of organisations are not ready for the Enhanced Reporting Requirements. As the 1 January 2024 deadline approaches, we continue to meet with Revenue to discuss implementation and guidance. We will continue to keep members updated via Chartered Accountants Tax News.   Debt Warehousing Scheme   Revenue reported that the total debt warehoused in the scheme was €1.8 billion consisting of over 57,000 businesses, 67 percent of which owe less than €5,000 each. Over 5,500 businesses owe a combined €1.5 billion, each owing in excess of €50,000. Revenue is continuing its telephone outreach campaign contacting businesses owing in excess of €50,000.   The Debt Warehousing Scheme is currently in Period 3, running from 1 January 2023 to 1 May 2024, with interest accruing at 3 percent per annum on the unpaid debt. The 3 percent interest charge will be incorporated into the phased payment arrangement (PPA) for its duration. Where there is no PPA, the interest will be charged retrospectively.   Taxpayers have until 1 May 2024 to agree a PPA with Revenue and are reminded that they can make interim payments during this period, and also request for the offset of any refunds owing against the balance of tax warehoused.   To assist taxpayers and their agents in quantifying the PPA instalments and interest payments, Revenue is providing a PPA calculator on its website. Revenue is encouraging taxpayers to engage now in the PPA process as there is flexibility in terms of payment terms, amounts and downpayments. In addition, payment breaks can be arranged once the PPA has been commenced. A nominal downpayment amount of 0.1 percent of tax and interest can be input using the online application system to commence the process of engagement and negotiation with the caseworker.   Revenue has prepared a number of ‘How to” videos in relation to the PPA process which are now available on the Revenue website (link to videos).   Vacant Homes Tax  Revenue provided current statistics on the Vacant Homes Tax (VHT) that was due to be reported on by 7 November 2023. Of the 50,000 properties reported to Revenue, only 5,000 properties were declared vacant. Revenue wishes to remind property owners that there is only an obligation to file a VHT return where the property is vacant.  Of the 5,000 declared to be vacant, 2,000 properties have been claimed to be exempt VHT. The VHT liability on the remaining 3,000 properties is due for payment by 1 January 2024.  Earlier in the year, Revenue wrote to owners of some 25,000 properties to advise them of the actions they needed to take, where the data available to Revenue indicated that the recipient may have a liability to Vacant Homes Tax (VHT). Revenue received responses from 45 percent of this cohort. Revenue intends to review the non-responders after the due date for payment of VHT, 1 January 2024.  Statement of Net Liabilities  Revenue is aware of some 1,000 instances in the Statement of Net Liabilities process where an offset of 2022 Income Tax refund against 2023 Preliminary Tax was selected but the refund issued, resulting in an underpayment of 2023 preliminary tax. Revenue will be contacting the affected taxpayers.  VAT Flat Rate Farmers Scheme  Farmers who are not registered for VAT are not, in the normal course, entitled to credit for, or repayment of, VAT incurred by them on their business inputs. However, a flat-rate farmer, who would not otherwise be entitled to reclaim VAT on costs incurred for the purpose of their farming business, can reclaim VAT on certain costs in accordance with Value-Added Tax (Refund of Tax) (Flat-rate farmers) Order 2012. Revenue wishes to remind farmers, and their agents, that VAT reclaimable is that VAT paid in relation to costs incurred only on:  (a) the construction, extension, alteration or reconstruction of that part of the building or structure which was designed solely for the purposes of a farming business and has actually been put to use in such a business carried on by him or her,  (b) the fencing, drainage or reclamation of any land which has actually been put to use in such a business carried on by him or her, or  (c) the construction, erection or installation of qualifying equipment for the purpose of micro-generation of electricity for use solely or mainly in his or her farming business.  It is to be noted that outlay for other purposes, such as on the acquisition of milk bulk tanks, feed bins, milking parlour equipment, automatic scrappers and automatic calf feeders do not come within the scope of this refund order. 

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

Gender allyship can help to support workplace equity, but only when it is genuine and meaningful. Andrea Dermody offers her advice on how to embed a culture of true support and allyship Harvard Business Review defines gender allyship as the purposeful collaboration of dominant group members (men) with women to actively promote gender equality and equity in their personal lives and the workplace through supportive and collaborative relationships, acts of sponsorship, and public advocacy to drive systemic change. While allyship can be a powerful tool for creating inclusive and equitable environments, however, there are instances in which it might not be as effective as intended. Research has suggested a stark perception gap between what men think they are doing to support women versus what they are actually doing.  The recent Allyship-In-Action study of more than 1,400 men and women found 78 percent of men said they had personally given a woman credit for her contributions and ideas in a meeting in the previous year. Just 49 percent of the women in the study reported witnessing such behaviour during that period. Despite good intentions, the effectiveness of men’s allyship efforts may be limited by several factors, including: Superficial engagement: Some allyship efforts may lack genuine commitment and understanding of the issues at hand.  Tokenism and performative actions: Both can create an illusion of support without leading to meaningful change. Lack of accountability and measurement: Allyship efforts can lack direction and fail to produce tangible outcomes without clear accountability and measurable goals. Resistance to change and inclusivity: Resistance from certain individuals or groups within the organisation can hinder effective allyship efforts.  In short, allyship is more than just ‘talking the talk’. It’s about fundamentally changing attitudes and behaviours. Simply calling yourself an ally to any person of an underrepresented group misses the point of allyship altogether.  Steps to successful allyship The secret to successful, long-lasting allyship lies in the combination of interpersonal action (developing awareness and motivation) and public action to create accountability and transparency. Here are five steps you can take to help allyship succeed in your organisation.  Educate yourself: Don’t ask people from marginalised backgrounds to take on the emotional, psychological and physical burden of educating you. Take responsibility for yourself. This list of resources from the University of Kent is a great place to start. Listen: Actively listen and amplify the voices of the communities for which you are trying to be an ally. Without listening, you have the danger of venturing into ‘saviour’ territory, where you assume you know more about what marginalised groups need than those in that group. Your actions become self-serving, and you benefit more than the groups you are trying to help.  Reflect on your privileges: The word “privilege” can be polarising, but it is essential to recognise the privileges you have to be an ally for others. Use your voice to make the voices of marginalised people heard. Use your privilege and influence to advocate for change and promote inclusivity. Stand up against discriminatory practices, biases and systemic injustices.  Mentor others: As an ally, showing your support through mentoring programmes is a great idea. By getting to know your mentee as an individual, you can learn about their experiences and perspectives. The more you know and understand, the better equipped you will be to help. See something, say something: Speak out in support of marginalised groups and actively challenge discriminatory behaviours and policies within your sphere of influence. If you see someone being discriminated against, support them at that moment, not later. Intervene even if the targeted individual or community is not present. By demonstrating that you don’t find it appropriate, you can help change the culture and create a more inclusive and equitable society.  Remember, though, that allyship is an ongoing journey that requires continuous self-reflection, learning and active engagement – it’s playing the long game for success. Andrea Dermody is a diversity and inclusion consultant, speaker and coach at Dermody

From next year, individual taxpayers will see more in their pockets as a result of the planned reductions in national insurance contributions However, today’s Autumn Statement featured little in the way of immediate tax cuts and supports for small and medium sized businesses As a region, Northern Ireland continues to be left behind on key issues and supports   22 November 2023 – Today’s Autumn Statement was a missed opportunity to provide struggling businesses with tax incentives and supports which would allow them to grow and thrive, according to Chartered Accountants Ireland. The Institute, which represents almost 5,000 members in Northern Ireland, more than two thirds of whom work in business, made these remarks as Chancellor Jeremy Hunt delivered his Autumn Statement in Westminster earlier today. Commenting, Janette Burns, Chair of the Northern Ireland Tax Committee of Chartered Accountants Ireland said:  “Today’s Autumn Statement was clearly delivered with one eye on a general election next year. More cash in people’s pockets after the cuts in national insurance take effect from January and April next year are positive and will also help reduce the cost of employment. But today the Chancellor did not deliver the same level of tax supports that we know many small businesses urgently need and want as they continue to grapple with high inflation. Confirmation that companies will be able to fully expense the cost of capital investment in new plant and machinery against profits permanently, and beyond the original end date of 31 March 2026, is a bold move and will provide the certainty needed for major investment plans, which in turn will bolster the economy and productivity. But this is only of real benefit to larger companies".  What’s needed is targeted incentives and supports for small and medium businesses. For example, Northern Ireland’s hospitality sector could have benefited from a reduction in the 20% VAT rate. Just a few miles down the road in Ireland, the rate is 13.5% and many other European countries have much lower rates than the UK. When coupled with high food prices, this makes it very difficult for Northern Ireland hospitality businesses to compete.   Paul Millar, Chairman of Chartered Accountants Ulster Society added:  “The relief available to SME companies which incentivises R&D activity was reduced by almost 34% from April this year. We urge the Chancellor not to further reduce relief this for genuine innovation activity as part of the plans announced today to merge the two current schemes. This is just another example of where the Chancellor could have taken the opportunity to set out a detailed roadmap for this relief which would have provided certainty to those investing in R&D.  In recent years Northern Ireland businesses have shown how adaptive and resilient they are. This was highlighted at the recent investment conference which showcased the brightest and the best we have to offer. But more needs to be done. The Government needs to recognise and reward this by establishing a pipeline of tax supports and incentives to enable businesses to truly grasp the entrepreneurial mindset which we know would help Northern Ireland crystallise all the opportunities that are there for the taking. Let us not forget that Northern Ireland also has legislation potentially within its grasp to reduce its corporation tax rate to match that in the Republic. Innovation, creativity, and a more entrepreneurial approach will benefit all here by driving economic growth, and job creation.  The time is ripe to help Northern Ireland level up. But this cannot begin until we have our politicians back in Government. Once again, we urge them to look at the bigger picture. We echo the recent sentiment that political decisions should not affect operational decisions. But this equally applies to the business of doing what is needed to help grow our economy, and ultimately benefit all of our citizens.” Other information:- The main tax announcements by the Chancellor today were as follows:- National insurance contributions for the self-employed will reduce by 1% from 6 April 2024; Employee national insurance contributions will reduce by 2% to 10% from 6 January 2024; The 100% deduction available to companies for investments in new plant and machinery is being made permanent and will not end on 31 March 2026; and The UK’s SME and large company R&D tax relief regimes are being merged into one scheme which will commence from 1 April 2024.

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

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

A recent survey conducted by Chartered Accountants Ireland has shed light on the significant challenges facing parents seeking childcare in Northern Ireland. The survey, which gathered responses from Chartered Accountants across Northern Ireland, highlights the crucial issues of cost barriers and their impact on career progression, while calling for increased childcare support and parity with initiatives in England. An overwhelming 75% of those surveyed cited cost as the biggest obstacle when securing appropriate childcare in Northern Ireland. For many, the financial burden of childcare is staggering, with two-thirds of respondents currently paying up to £1,000 each month per child. One-third of those surveyed are grappling with even higher costs, paying between £1,000 and £2,000 per month, per child. The survey also unveils the extent to which childcare responsibilities l impacts on career progression. A striking 93% of respondents acknowledged that their careers or working patterns had been affected. The survey found that 22% of respondents had been forced to reduce their working hours, while 29% had requested flexible hours to manage their childcare needs. An additional one-third are contemplating making adjustments to their working hours, underlining the magnitude of this challenge. In a call for improved childcare support, a significant majority of those surveyed expressed their desire to see parity with the enhanced childcare provisions announced in England, such as the commitment to providing 30 hours of free childcare for all children under five by 2025. Parents in Northern Ireland are looking for similar support to alleviate the financial burden and enhance their career opportunities. Commenting on the survey results, Zara Duffy, Head of Northern Ireland, Chartered Accountants Ireland said, "The findings of this survey make it clear that Northern Ireland must address the critical issue of childcare costs and its impact on parents' careers as a matter of priority. “We would like to see the Government taking urgent action to support parents. This includes exploring the possibility of providing more affordable childcare options and considering initiatives that aligns Northern Ireland with the childcare provisions being offered in England." “These survey results serve as a stark reminder of the challenges faced by parents in Northern Ireland and the urgent need for accessible, affordable, and high-quality childcare services. Chartered Accountants Ireland is committed to advocating for changes that will ease this burden and help parents balance their work and family responsibilities.”

The pervasive use of business jargon can hinder effective communication and alienate colleagues and clients. Jean Evans explores the impact and pitfalls of using it in business According to Duolingo, many words and phrases used in ‘business English’ have been subsumed into other languages, and 60 percent of people say they had to figure out the jargon used on their own when entering an organisation or business sector. The prolific use of business jargon can not only lead to potential miscommunication, it can also exclude others in the organisation from networking within their business sphere. Why do we use jargon? The use of jargon can achieve several things. It can: project authority; convey sophistication; showcase trendiness; and show business savvy. However, jargon can make others in your organisation or at a networking event feel uninformed and stressed, leading to less productivity, miscommunication and heightening another person’s sense of imposter syndrome. Acronyms Acronyms can be equally confusing and isolating for people who don’t understand them. In business, we hear a tremendous number of acronyms. Never assume your audience understands them. If acronyms crop up, make sure they are explained in full at the outset. For example, “key performance indicator (KPI)” can be formatted to inform an uninitiated reader of the acronym’s meaning before they continue reading the document. Jargon in marketing and promotion The amount of jargon used in brochures, websites, social media pitches and proposals can be staggering, particularly in hard-to-understand areas such as finance. If you want to sell your services to those outside the accountancy profession, eliminate all the technical terms you would typically use daily from client-facing content and have someone outside your industry review copy to see if it stands up on its own. If they understand what you are trying to sell, so will potential clients. Raise your awareness Become aware of the language you use. It can create a barrier, but when used correctly, it has the power to include everyone in the conversation. Jean Evans is a Networking Architect at NetworkMe

Budget 2024 was substantial. Brian Brennan and Norah Collender outline the measures that will be implemented in the new Finance Bill Finance (No.2) Bill 2023 was introduced by Minister McGrath following a budget package worth €14 billion announced on Budget Day. The Bill is large by normal standards, running to over 270 pages, due to substantial legislation required to introduce the new minimum effective rate of tax for companies/groups with revenues exceeding €750 million. The Bill sets out the legislation for measures announced on Budget Day along with the customary raft of changes of keen interest to us, the accountancy profession, as advisors and business leaders.   Corporation tax  The Bill proposes numerous measures impacting businesses, including changes to corporation tax loss relief rules and amendments to the taxation of leases.   The Bill also includes a revised form of the bank levy for 2024 based on a measure of deposits held by each liable institution. In addition, the Bill sets in motion the Budget’s enhancement of the R&D Tax Credit (RDTC) rate to 30 percent and doubles a company’s first-year refundable RDTC instalment. These enhancements apply to accounting periods commencing on or after 1 January 2024. The Bill also introduces a ‘pre-notification’ requirement for new RDTC claimants or companies that have not made an RDTC claim in the three previous accounting periods.   New measures are also provided for in the Bill on outbound payments of interest, royalties and distributions (including dividends) to jurisdictions on the EU list of non-cooperative jurisdictions, no-tax and zero-tax jurisdictions. These measures are designed to meet commitments contained in Ireland’s National Recovery and Resilience Plan. Income tax The Bill sets out the required provisions to enable Budget increases to income tax rate bands, tax credits and reductions to USC. It also provides that gains on the exercise, assignment or release of a right to acquire shares or other assets will be assessed under the PAYE regime for gains realised on or after 1 January 2024. As with other emoluments and benefits chargeable under PAYE, employers will be responsible for processing the calculation and collection of tax as part of their employer PAYE returns.  Capital gains tax (CGT) and Capital acquisitions tax (CAT) The Bill proposes changes to CGT Retirement Relief for business owners and farmers, which extends the age limit for the relief from 66 to 70 but limits disposals to a child made by a disponer aged 55 to 69 to €10 million. This measure will be an impediment to a well-organised lifetime intergenerational transfer of larger businesses.    The Bill introduces a new CAT reporting requirement on interest-free loans involving private companies, even where no gift tax is payable. Clawback provisions impacting CAT Business Relief and Agricultural relief are also amended in the Bill.   Pension measures Several measures relating to pensions are proposed in the Bill, including the removal of the upper age limit on taking benefits from Personal Retirement Savings Accounts (PRSAs), allowing for drawdowns by PRSA holders after they reach the age of 75 years. The Bill proposes that Revenue will not approve any applications for new retirement annuity contracts received after 1 January 2024. Anti-avoidance measures in the Bill aim to prevent assets from being used to provide loans and/or as security to private companies. Pension funds will also have to ensure that tenancies are registered with the Residential Tenancies Board (RTB) to avail of gross roll-up on rental income.   Property The Bill legislates for the Budget’s relief at the standard rate of income tax for residential rental income earned by landlords with properties in the rental market from 2023 to 2027. In addition, the Bill clarifies the taxation of rents paid to non-Irish resident landlords by amending legislation introduced in the Finance Act 2022. In summary, where a tenant of a non-resident landlord pays rent to a collection agent, the tenant will not be required to deduct and remit withholding tax to Revenue. Instead, the collection agent may either deduct and remit tax to Revenue or otherwise remain assessable and chargeable for tax in respect of the rental income of the non-resident landlord.  The Bill also extends the Help to Buy scheme until the end of 2025.   VAT The Bill confirms a number of measures announced in the Budget, such as the extension of the nine percent rate of VAT for the supply of gas and electricity, the application of the zero-rate of VAT to certain audiobooks or eBooks, and the increase in the VAT registration thresholds. The Bill is currently making its way through the Dáil and is expected to be signed into law just before Christmas.  Brian Brennan is Tax Parter at KPMG Norah Collender is Tax Director at KPMG