The European Financial Reporting Advisory Group (EFRAG) has released a series of 20 educational videos on the first set of draft European Sustainability Reporting Standards (ESRSs). These videos provide some useful guidance in the form of short "glimpses" and longer "educational sessions" which will help viewers gain an understanding of the requirements as set out in the ESRSs. The ESRSs , which were subject to public consultation in 2022 set out the sustainability reporting requirements which will be phased in over time for different kinds of companies, with the first reporters doing so for years commencing on or after 1 January 2024.

Welcome to this week’s Technical Roundup.  In developments this week, the CCAB-I Insolvency Committee has recently made a submission to the Department of Enterprise, Trade and Employment on their call for views in response to the proposal for an EU directive harmonising certain aspects of insolvency law; the Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, held its plenary meeting on 22/24 February and has now published the outcomes on its website. Read more on these and other developments that may be of interest to members below. Audit and Assurance The Irish Auditing and Accounting Supervisory Authority (IAASA) has published its 2021 Annual Audit Programme and Activity Report. This report provides a summary of the activities performed by IAASA during 2021 to oversee the audit profession in Ireland. The report outlines the outcome of IAASA’s quality assurance review of auditors of public–interest entities as well as IAASA’s oversight of the recognised accountancy bodies who supervise auditors of other Irish entities. Insolvency The CCAB-I Insolvency Committee has recently made a submission to the Department of Enterprise, Trade and Employment on their call for views in response to the proposal for an EU directive harmonising certain aspects of insolvency law. This submission which is available to read here was generally supportive of further harmonisation of existing avoidance actions across the EU. The Corporate & Insolvency Bar Association is hosting its inaugural annual conference on Friday, 31 March. There will be a drinks reception and dinner taking place after the conference. The conference schedule and booking details are available here. Financial Reporting The Financial Reporting Council (FRC) has published a thematic review on the Big 4 audit firms’ methodology around IFRS 9, focussing on the audit of Expected Credit Losses for larger banks. The European Financial Reporting Advisory Group (EFRAG) has released a report with the key messages and discussion points covered at the January 2023 IFASS (International Forum of Accounting Standard Setters) meeting. The International Accounting Standards Board (IASB) has issued its February 2023 update and monthly podcast. The IFRS Foundation has released its February 2023 monthly news summary which includes details of meetings held, decisions made and activities during the month. The UK Endorsement Board (UKEB) has issued a draft comment letter on the IASB’s exposure draft International Tax Reform – Pillar Two Model Rules. Comments are welcome by the UKEB until close of business on 3 March 2023. Sustainability Momentum builds for corporate ESG disclosure and assurance, yet reporting inconsistencies linger. The largest global companies continue to show momentum on corporate reporting and related assurance involving environmental, social and governance (ESG) issues, according to a new report from the International Federation of Accountants (IFAC) and AICPA & CIMA. Significant hurdles remain, however, when it comes to providing consistent, comparable and high-quality sustainability information for investors and lenders. CDP (Carbon Disclosure Project) Ireland has published its Annual Report 2022 "Alignment of Climate, ESG & Financial Disclosures: Global Sustainability Standards and Regulations align to Provide Greater ESG Transparency and Focus". The report is available at https://lnkd.in/eUr4tsrH and provides insights into how Irish companies are addressing ESG topics.  CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. In Accountancy Europe’s latest article from their ‘Insights from SME accountants’ series, Anton Schmidl and Thomas Wallner from Crowe SOT in Austria discuss how they support SMEs with their sustainable transition, including what auditors and accountants can so to help SMEs. Anti-Money laundering/Sanctions The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, held its plenary meeting on 22/24 February and has now published the outcomes which can be accessed on its website here. These include suspension of Russia's membership of FATF, strategic initiatives on beneficial ownership and dealing with High-risk and other monitored jurisdictions. The European Commission welcomes the Council's adoption of a 10th package of sanctions against Russia and those that support it in its illegal aggression against Ukraine. 24 February marks one year since Russia's full-scale invasion of Ukraine and 9 years since the beginning of Russia's illegal invasion and occupation of Ukrainian territory. This package is turning up the pressure in response to Putin's brutal war, including viciously targeting civilians and critical infrastructure. Other Areas of Interest Decision Support Service It has recently been confirmed that a full commencement of the Assisted Decision-Making (Capacity) Act 2015 will take place on 26 April 2023. The full operationalisation of the Decision Support Service  will then take place when people can interact with the new service. The DSS teams are available to answer any queries in advance of its commencement on 01 2119750 or queries@decisionsupportservice.ie. NI Charity Consultation The Charity Commission for Northern Ireland is developing a new strategic plan alongside a new engagement strategy, both of which are being undertaken following the Independent Review of Charity Regulation commissioned by the Minister for Communities in January 2021. The European Commission published on 15 February a Handbook of good practices in the fight against corruption. The goal of this handbook is to map a variety of anti-corruption practices in EU Member States (MS) that have proved to be useful in solving problems related to corruption, and which can inspire similar initiatives elsewhere. For this purpose, one good anti-corruption practice either established or innovative, with positive impact aspirations in each EU Member State was selected, and clustered into eight types of anti-corruption approaches. Readers may recall our news piece on the publication by the Law Reform Commission of a  consultation paper on liability of clubs, societies and other unincorporated associations. As the consultation paper has generated considerable interest, and to facilitate as many consultees as possible making submissions in response to the questions posed in the consultation paper, the Commission has decided to extend the submission deadline from March 2023 to 15 May 2023. Accountancy Europe has released a factsheet highlighting the main provisions in the OECD Pillar Two GloBE (Global Anti-Base Erosion Rules) proposals. For further technical information and updates please visit the Technical Hub on the Institute website.  

Regulatory Fee Invoices  The Regulatory fee invoices for 2023 are available online at the Myaccount portal of the website to view, print and pay.  Remittance should be made by 31 March 2023.  If you prefer a copy invoice to be emailed, please email Sandra.smiley@charteredaccountants.ie quoting your individual/firm ID.   Need assistance?   Please email Sandra.smiley@charteredaccountants.ie with your name and member/firm ID along with the query or changes required.   We will issue a revised invoice if this is appropriate. 

On 23 February 2023 the Council of the European adopted its tenth package of sanctions against Russia. You can read more details on the tenth package on the European Commission website here a press release on the tenth package here and  Questions and Answers: tenth package of restrictive measures against Russia here.

In every issue of The Bottom Line, we ask students for their thoughts on a particular topic. This month, we want to know: Are you worried about the state and future of the Irish economy? Caelainn McGonigle Gilroy Gannon The Irish economy can continue to perform well if policymakers encourage homegrown entrepreneurship .  Ireland is a relatively small country with an educated workforce and a large university system; it should carve out some niche markets and try to have some real impact on technology and innovation. There are many interesting new business opportunities opening up, including those associated with artificial intelligence systems and green energy/green transport.  It is no longer good enough to let large multinationals, and the EU set the business agenda for Ireland. Ireland should rely more on domestic businesses as the key driver of growth and less on foreign direct investment.  There is plenty of untapped potential if Irish graduates are given the right opportunities to stay in the country. Just as in our parents’ generation, many young Irish adults have watched our friends move abroad to avail themselves of better opportunities.  The crisis in affordable housing has also contributed to this emigration trend. Even with a good starting job in Ireland, it is very difficult to find decent, quality affordable housing in our cities.  The Irish government needs to devote more focus to providing good career opportunities and affordable housing solutions to the new generation of workers.  Dónal Sweeney PwC While the impact of high inflation rates and the cost of living crisis remains a high area of concern for myself and my peers, I still remain optimistic about the future of the Irish economy.  I believe people are keen to get our economy back to where it once was. When our economy reopened after COVID-19, it bounced back with a strong level of activity – something I even noticed in my day-to-day life. The fall in business and consumer confidence has also been recorded and acknowledged, and I believe Ireland has the infrastructure and tools to address this in the medium term. I just hope that Ireland’s strong efforts to recover from the pandemic and improve our housing supply and healthcare do not offset efforts made to reach our ESG goal of achieving a climate-neutral economy.  Brendan Connor PwC Between the climate crisis, an unstable energy market, the COVID-19 pandemic, and especially the terrible war in Ukraine, it is certainly a worrying time for Europe.  Ireland has a particularly strong technology base through its position in three growth sectors: IT, pharma, and medical devices. This strong foundation provides a pipeline of opportunities which should help to moderate Ireland’s vulnerability to Europe-wide business cycle shocks over the next few years.  The big worry for me is the war in Ukraine, its aftermath and the possibility of armed conflict or civil unrest spreading to other Eastern and central European nations.  The rebuilding costs for Ukraine will also be enormous, and it will be up to its European partners, including Ireland, to share that burden.  

Peter Gillen, Sustainability Manager at Grant Thornton, didn’t know five years ago where he would be today, but he is incredibly happy he is here, and thinks his ACA qualification is to thank Five years ago, where did you think you would be now? Have you lived up to your own expectations? Truthfully, I don't think I had an idea where I'd be, but I knew that the ACA qualification can take you almost anywhere.  Case in point: since qualifying, I've lived in Boston, worked with some amazing clients, and now work in sustainability at Grant Thornton, so I'm delighted with how things have panned out so far. What has been the biggest challenge of your career? Probably pivoting into sustainability and advisory (having previously worked in IT audit), but it's also been the most rewarding and has pushed me in ways I didn't foresee and I'm all the better for it. What do you wish you had known earlier in life? Don't underestimate balance in all things, including health, work, and social. And if you take care of your body, it'll take care of you. Where do you see yourself this time next year? Hopefully still doing all the things I'm doing at the moment, except with another year's experience under my belt! Who inspires you, personally and professionally? My parents would be my biggest inspiration, both in terms of work ethic and, most importantly, their treatment of others. How has being a Chartered Accountant changed your life? It has opened doors that I know for a fact wouldn't have opened if not for my Chartered Accountant qualification, whether that be the opportunity to work in sustainability or be engaged with the Chartered Accountants Ireland community through my involvement in the Young Professionals Committee. If you weren’t a Chartered Accountant, what do you think you’d be doing? I'd probably be working in a scientific field as I enjoyed chemistry and physics in school. I like the methodical approach used to solve problems. What advice do you have for those who will soon qualify as Chartered Accountants? Don't underestimate the value of staying involved in the Chartered Accountants Ireland community, whether you attending an event or joining a committee (e.g. Young Professionals). I can guarantee you'll get back 10 times what you put in!

If you're thinking about study leave or your next steps in becoming a member – hold on! Hugh Carroll, Manager of the Training Support Unit at Chartered Accountants Ireland, wants to put you on the right path As we move into the second quarter of 2023, the Training Support Unit are conscious that you are likely to be: getting yourself organised for the forthcoming exam season or; approaching the end of your training contract/period. In both scenarios, it is important to be aware of some important information about your CA Diary.  Get the CA Diary on your pre-study leave to-do list  For those of you who will be taking Institute exams this year, it is important that you put time in your personal diary to bring your CA Diary up-to-date and submit the experience for approval. By updating your diary now, you can focus completely on your studies without interruption over the coming weeks.    While it is good practice to keep an offline record, you do need to upload and submit entries to the online system.  Springing into membership? For those who are approaching the end of the training period, there really is no better time than now to check your diary status, bring it up-to-date and put your mentor on notice that your remaining experience will be forwarded soon for approval.  You should note that you won’t be able to get access to a final mentor review until you have reached the end date of your training contract (even if you have all experience days and competencies).  If you have reached or are soon to approach the end of your training contract, but still have elements of your exams outstanding, you can still complete your CA Diary up to and including the final mentor review.  The requirements for the final mentor review are noted under section 1.7 of the CA Diary Guide - Trainees, along with the process for applying for membership.  Common mistakes to avoid Please bear in mind that the Training Support Unit will conduct a quality review of your CA Diary record at the point of admission to membership (and possibly beforehand as part of our monitoring review procedures), so it’s best to check that your record is accurate now.  The team is often impressed by the standard and quality of CA Diary records, however, some of the errors we see mean delays for trainees who wish to get their ACA membership.  Of the errors, the most common are: First entry predates contract start date; Last entry extends beyond the contract end date; Zero-day entries or entries solely for periods of leave; Understating competencies (technical and non-technical); Overstating competency elements (e.g. did you really conduct an IT audit?); Entries which contain limited information in competency descriptors; Overlapping entries. Entries need to be consecutive, not concurrent; and Duplication. Don’t copy and paste your competency descriptors across multiple elements or across groups. To ensure that you avoid the common pitfalls, review the Sample CA Diary Entries for Trainees (check out the Do’s and Don’ts section, in particular). We also introduced a Trainee Checklist, which should help you when creating/submitting entries.  These, and all of the other resources, are available on the CA Diary Resources webpage.   If you find you are struggling with any aspects of your Diary, or are seeking some reassurance, contact the team at Trainingsupport@charteredaccountants.ie or call 01 637 7202.  Lastly, keep an eye on your inbox for notification of any of our forthcoming CA Diary online webinars. Important e-assessment news: new browser download required  All students should note an important change in the technology supporting Chartered Accountants Ireland exams, starting with CAP1 exams in May 2023.     Our online invigilation partner, ProctorU, relies on a browser extension to monitor students, and that extension has to be manually applied to students’ laptops.  As a result of significant recent updates to other browser extension frameworks, ProctorU has launched its own secure browser, Guardian, which provides an enhanced service.  Guardian is now ready and a link to download has been sent to students by email.  For CAP1 exam candidates, your final download deadline is 15 April 2023. By this date, all CAP1 students should have completed the Guardian browser installation on the laptop they plan to use in the main exams. CAP1 ‘practice onboarding’ session is scheduled for 03 May 2023.   The requirement to download the new Guardian browser will also apply to CAP2 and FAE students.  

Longer spring days also mean that exam season is also slowly approaching! Here is an update on what's happening in CAP1, CAP2 and FAE education programmes this March Dates for your diary: CAP1 and CAP2 in-person student events 2023 Our academic programmes kicked off last September and October with in-person student networking events, and we're pleased to announce another series of in-person events for our CAP1 and CAP2 students. On Friday, 24 March, CAP1 and CAP2 combined events will take place in Belfast, Cork, Limerick, Galway and Kilkenny (venues TBC). Our Dublin event takes place on Saturday, 1 April.  We'll have presentations on exam preparation, e-assessment technique and getting the most from study leave at the events.   There will also be guest speakers who will help you look after your well-being during stressful periods, and you'll meet regional representatives from CASSI.  At the time of writing, email invitations to CAP1 and CAP2 students are due to go out shortly. We look forward to seeing you there! FAE in-person dates and venues are to come. Sample papers The Education team has released some additional support for CAP1 and CAP2 exams.  'Sample papers' (accompanied by solutions) are full, exam-standard PDF scripts that allow you to attempt a full paper in exam conditions and duration.   If you undertake each sample paper in MS Word over the coming months, you'll quickly find out how well-prepared you are.  There are four sample papers for every subject examined, and they are now available on the Institute website. FAE sample papers will be available soon. Practice papers For additional exam preparation, the Exams team is also providing a practice paper to assist with exam technique.  For this, we take one of the sample papers and upload it to the exam platform, Cirrus. Before going into your practice papers, please view all the explanatory videos on e-assessments, available on the exams section of the Institute website.  Once you access the practice paper, you can address the exam questions just as you will in the summer exams (bar the invigilation that will be present on exam day).  You'll learn how to navigate the paper, switch from exam questions to the answer window, how to insert tables, add rows and view additional resources.   A practice paper will be available for each main subject across all programmes, starting with CAP1. You will have a maximum of four attempts on the practice paper. We recommend using two attempts before the mock exams and two afterwards.  Remember, once you enter and close out the practice paper, that constitutes one attempt, so use them carefully.    Mock exams Another important support you should take advantage of is the mock examination.  CAP1 will start in April, followed by CAP2 in May. (More information on the Institute website.)  The mock exams are online, and exams may be sat during a time window when it suits you.   You'll use Cirrus, just like you will during the summer exam, but without the invigilation and with the ability to self-mark your own exam script.  Exam paper solutions and lecturer recordings of those solutions will be available as soon as the mock exam windows close.  The mocks are fantastic preparation for your main exams. Please put these dates into your diaries and plan to undertake the mocks now.   FAE update  The second (and last) material release for FAE Electives takes place on Wednesday, 1 March, when all FAE content (bar Integrated Case Day support materials) will be available.  Finally, a reminder to all FAE students: all students must attend a minimum of five out of seven Integrated Case Days – otherwise, you can't sit your FAE exams. Watching them back as recordings does not count as attendance. The Integrated Case Days are a practical way of preparing to answer in FAE question format.  Don't hesitate to contact us by email at CAP1 / CAP2 / FAE@charteredaccountants.ie and use the discussion forums for all your academic queries.  Bryan Rankin is the Head of Student Operations at Chartered Accountants Ireland

With four examinable tax heads on the Tax Syllabus, getting them correct on exam day can be challenging. Philip Nicolls lets you in on the secret to getting them right The CAP1 Tax syllabus spans income tax (IT), corporation tax (CT), capital gains tax (CGT) and value-added tax (VAT). Getting to grips with all four tax heads is quite a challenge.   A quick read through recent examiner reports highlights that while many candidates differentiate the separate taxes, some confuse the rules for each tax under exam pressure.  Often this includes some of the more fundamental aspects, and candidates lose relatively easy marks. These basic aspects include: The rate of tax applicable; The due dates for filing and payment; and The rules relating to add-back deductions for IT vs CT – candidates often apply the IT rules in their CT computation. It was tempting to simply include three reference tables in this article showing the information for these three aspects across the relevant tax heads. However, the CAP1 exams are closed book, and getting the information from a table is the least effective way to understand and memorise it. Instead, I challenge you to take an hour to prepare the three tables yourself using your lecture slides and textbook. You should: Detail each of the three aspects, including a list of all the common add-backs and deductions; Add a column for each relevant tax head; and Populate your table with the correct rate/date/treatment. Repeat this technique before your mock exam and spend a few seconds reviewing it every time you study tax. When you sit your mock exam, answer these questions from memory.  I guarantee that researching and preparing the information yourself will make it much more memorable. Good luck with your CAP1 Tax paper in May. Please don’t miss out on any of those easy marks! Philip Nicolls is Paper Development & Syllabus Manager at Chartered Accountants Ireland

Some CAP1 candidates will soon sit their first professional exam. There are steps students can take to ensure their first exam is a successful one, says Garret Mulvin  You have undoubtedly received plenty of guidance and materials to help you navigate your CAP1 journey. At this point, however, a reminder of the critical components of exam success is worth reviewing for all CAP1 candidates. All students preparing for the upcoming CAP1 exams from 22 to 26 May are here on merit and, regardless of the educational route to Chartered Accountants Ireland, are well placed to take on the challenge.  While there is a noticeable step-up to professional exams, how to achieve the magical passing score of 50 percent on any CAP1 exam paper is not a mystery. Exam-focused preparation Engaging with the learning hub, attending webinars and reviewing question banks have been a central and vital part of your CAP1 experience.  Ultimately, however, each CAP1 subject will present candidates with a three-hour challenge during exam week. Four sample papers are available for each subject that reflect that challenge, and students should practice with these as soon as possible.   It is one thing to be able to calculate a cost of capital, complete a variance analysis, prepare a tax computation or finalise a statement of cash flow—it is an entirely different challenge to do this under exam conditions.  Put the phone away, close the study-room door behind you and remove the solution from view until you have completed your attempt.  You may get a shock the first time you attempt a sample question (not to mention a paper!) under exam conditions. You will likely be uncertain and hesitant, make many mistakes and run well over the allotted time. Don’t be discouraged by this – it is essential to your exam preparation journey! Learn from it, understand where you went wrong, and prepare to attempt another similar question.  Practice on Cirrus All Chartered Accountants Ireland exams are taken on Cirrus, the e-assessment platform. Practice papers are available to students on Cirrus.  It is essential to become familiar with the functionality and feel of the e-assessment platform. Navigating between questions, creating tables, and flagging incomplete questions you wish to return to are just a flavour of some of the functions that must become second nature for all students.  This is especially relevant at CAP1, where most candidates do not have the benefit of having taken a main exam on Cirrus in the past. Ensure you engage with these practice papers well in advance of your exams. Mock exams As you know, practice and preparation are essential for passing your exams.  Any exam can be a nerve-wracking experience, regardless of how prepared candidates may be. Mock exams can serve as a confidence-building exercise, help you control the nerves, improve your exam technique and, ultimately, maximise your performance on exam day.  Remember – there is no such thing as doing a bad mock.  Time management Exam technique is essential to your CAP1 preparations, and time management is a huge part of that. In the Exams Department at Chartered Accountants Ireland, we work closely with the examiners to ensure that the entire allocated time (three hours per CAP1 paper) is necessary to complete all requirements. Because of this, time management must be central to your studies.  A CAP1 student has approximately 1.8 minutes for each available mark on the paper. With discipline and practice, your time taken per question will fall, and your chances of exam success will increase.  In the exam itself, once you’ve used the suggested completion time on a particular question, finish up and move on to the next one. Years of feedback from our marking teams tell us that you will undoubtedly get a better return by moving on to the next question rather than spending too long on the current one.  Time management is a skill that needs to be practised. Appropriately managing your time ensures you will attempt all required parts of an exam paper, thus significantly increasing your chances of securing a passing score. Be e-prepared Ensure that both you and your equipment are ready for e-assessment. The links below provide important information for all students. How to get started:  https://www.charteredaccountants.ie/Current-Student/Exams/E-assessment-info/How-to-start  FAQs: https://www.charteredaccountants.ie/Current-Student/Exams/E-assessment-info/Exams-FAQ   Garret Mulvin is in the Examination Executive-Paper Development Unit at Chartered Accountants Ireland

Remote work has given trainee accountants a lot of freedom. However, that freedom comes with some challenges that can be overcome with balance, says Jack Deignan It’s easy to list the obvious joys of remote work. The increased levels of flexibility in daily routines, the total elimination of the pains of the commute and the comfort to be found in working from your own home.  There’s also something to be said of the lack of pressure that working from home allows. There is no expectation to get out of your pyjamas, and you can take solace in knowing your favourite mug is just down the hall.  It can be much easier to get into the rhythm of the day if you just need to walk from your bed to your desk.  Work and study challenges However, working remotely is not without its challenges.  The lack of social cohesion in teams when everyone works from home can impact performance. It’s also difficult to foster a sense of comradery if every interaction is facilitated through a screen.  Learning on the job has also become more difficult in some cases. It’s almost always more beneficial to ask someone to explain something face-to-face.  The same goes for studying. When the pressure is on, it can feel isolating to be away from people who are going through the same kind of juggling act between work, study and life. A proper balance Working remotely has created an opportunity to reflect on what is gained and lost when given a chance to work from home.  We must balance our work and study while utilising the advantages of remote working. When working from home, you can get lost in a task and continue working more than what would be considered healthy for proper work-life balance. It’s important to remember to take breaks—go for a walk, get a coffee and don’t worry about going to the GP or running to the post office if needed. Similarly, studying can take over your life when you don’t have people around you that can keep you in check. Take the initiative to meet fellow trainees for a study session at the office or a local café.  Alternatively, set up a Teams or Zoom study call, so you don’t have to leave home but still have a study group. Having flexibility doesn't mean forgetting when the work and study day ends—it means you get some of that time back for yourself. Enjoy it. Jack Deignan is a Risk Assurance Associate at PwC  

Please join us in Chartered Accountants House on 29 March for some free, in-person events to mark the Periodic Review of FRS 102, FRS 105 and other UK and Irish accounting standards. In December of last year, the FRC released  FRED 82 Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs. This Financial Reporting Exposure Draft (FRED) forms part of the periodic review of the standards which happens approximately every five years. The FRED is now open to consultation and comments are requested by the FRC by 30 April 2023. We are delighted to be welcoming Jenny Carter and Stephen Maloney from the FRC to Dublin for two events to help inform members on the proposed changes. From 12:30 to 13:30 they will be giving a summary of the key changes proposed to the standards in their Summary presentation    If you would like to hear more about the proposed changes, including changes to lease accounting and revenue recognition, they will also be holding some Roundtables from 14:00 to 16:15 Members are invited to attend the presentation and roundtables. If you want to register for these you can do so using the above links.