In early 2025, before Donald Trump had even stepped foot inside the White House to begin his second time as US President, corporate America rushed to back out of diversity, equity and inclusion (DEI) promises made to consumers in 2016. Three members give us their take on the potential impact on DEI policies in the wider working world. John McNamara Executive Director and CFO, AIB life There has never been a more exciting time to be interested in diversity, equity and inclusion (DEI). “Too woke! Too preachy! More masculine energy! Shut it down!” Regardless of the invective linked to its unexpected politicisation, what seemed to be an unquestioned progression in DEI awareness and acceptance has now been seriously disrupted. How we react will determine its evolution, and indeed existence, in the years ahead. “Never waste a crisis” is the truism, and this period of transition offers businesses the opportunity to double down, tread water or cease their DEI activities. At its core, DEI aims to tackle important issues, such as workplace gender equality and discrimination based on sexuality and racial biases, while also raising awareness of age, ability and access in a safe environment. Within organisations, this effort is supported by a culture that is visibly led from the top and engages those affected, along with their allies. Diverse teams produce better products resulting in higher profits, the latter being ironic in the context of much of the current US narrative. What DEI isn’t is tokenism. It isn’t about marking certain days of the year, while ignoring what they represent the rest of the time—participating in a Pride parade annually, for example, without putting in place supportive policies for LGBT+ people. The responsibility for DEI often gets passed to HR, where it withers away, remaining separate from the rest of the organisation. Lanyards and name badges are produced only to be tossed in (virtual) drawers, often in the absence of management leading by example. So, if all of that ceases now, then frankly, no loss. However, those businesses that stay the course have a valuable opportunity to reflect on how DEI sits within—and is communicated across—their organisation. In the short term, check in with your team to find out how they are feeling about current events, and to understand if they feel unsettled. Even small gestures build trust and inclusion. Less emphasis on targets, quotas, enforcement or policies may also be welcome—and more on ensuring that workplaces better represent the full diversity of the communities they employ, engage with and serve. The pendulum will swing again. Those businesses that re-commit to DEI now when challenged will arguably be more invested than ever before—and that’s a good thing. Sandra Quinn, Founder and CEO Quinn & Associates, Executive Search Partners For over 15 years as a recruiter and the previous 10 as a Chartered Accountant, I have seen how work shapes careers, identities and aspirations. Where we spend our nine-to-five matters. It influences our sense of purpose, opportunity and belonging. I have always been guided by two principles: A lesson from my father: “Love is an understanding of one another”; and A simple truth I share with my children: “If we were all the same, the world would be very boring.” These ideas highlight the value of difference, not just in theory but in the strengths diverse perspectives bring to the workplace. DEI initiatives have played a key role in fostering more inclusive environments. They have broadened access to opportunity, challenged outdated biases and helped organisations recognise talent in all its forms. Neurodiverse individuals, for example, bring fresh thinking and problem-solving skills yet, too often, face barriers unrelated to ability. Similarly, many disabled professionals are not limited by their own capabilities but by workplaces that fail to accommodate them. The real challenge is not whether people can contribute but whether workplaces create the conditions for them to do so. As some organisations scale back DEI efforts, an important question arises: what comes next? True inclusivity should not depend on a policy. It should be embedded in how we lead, hire and collaborate. Fairness, respect and opportunity must be more than corporate buzzwords. They should define workplace culture. Sustaining progress requires more than policies. It demands emotional intelligence, empathy and a willingness to challenge bias. The success of DEI will not be measured by whether programmes persist, but by whether their impact endures. Understanding and celebrating difference is not just the right thing to do; it is what makes workplaces stronger, teams more innovative and organisations more successful. Mark Fenton, CEO & Founder, MASF Consulting Ltd For years, diversity, equity and inclusion (DEI) practice has shaped workplaces globally and enhanced performance by embracing diverse contributions and driving innovative decision-making. Recently, however, we have seen some high-profile corporations and educational institutions begin to dismantle their DEI initiatives. DEI is seen by some as non-essential, with initiatives viewed as a zero-sum game or unhelpful political correctness. So, are DEI programmes still important? The answer is yes. DEI programs are not just about fairness; they drive business success. Research consistently shows that diverse teams are more innovative, perform better financially and make better decisions. Inclusive workplaces lead to higher employee engagement, retention and job satisfaction. While Meta, Google and Amazon’s about-face on DEI has grabbed the headlines, there are many more organisations (Apple, Coca-Cola and Citigroup, for example) that have come out in favour of DEI and reaffirmed their strategic intent. Indeed, at the recent Davos summit, the CEOs of both JP Morgan Chase and Cisco delivered strongly supportive statements on the impact of DEI. Nonetheless, the DEI ‘industry’ is partly to blame for the current backlash in that some of the language it uses is viewed (ironically) as exclusionary, and some initiatives as favouring certain groups over others. This can hamstring diverse viewpoints, prioritising identity factors over merit and muddying the link between diverse perspectives and innovation and performance. Leaders need to: Engage the audience: Simplify the message of what DEI means for each individual and release the constraint of ‘mandatory training’. Refine, not reduce: Review language used and mitigate negative perceptions of DEI supporting unfair quotas and/or unwanted activism—do not, however, reduce efforts and continue to maintain progressive company values. Link to business: Ensure measurable outcomes and better integration into corporate strategies. Our world is evolving and the need for inclusive and equitable workplaces remains. Organisations that stay committed to DEI will not only gain a competitive edge in an increasingly diverse and dynamic marketplace but will also benefit society as a whole.

At a time of unceasing change and disruption, internal auditors are under more pressure than ever before to get ahead of potential risks. Colm Laird outlines some of their most pressing priorities for 2025 Internal auditors must remain agile and responsive to change as their organisations contend with fast-evolving challenges.  Having endured unprecedent levels of uncertainty and disruption in recent years, many organisations continue to face threats and challenges posed by prevailing economic and geopolitical conditions, changing stakeholder outlooks, stringent regulatory requirements and heightened digitisation.  Outlined here are some of the key thematic areas and related risks internal auditors should consider in 2025 when assessing their organisation’s risk profile and control environment. Economic and geopolitical uncertainty Despite years of economic and geopolitical instability, global economic growth remained resilient in 2024, with further recovery expected this year. The geopolitical landscape remains unstable, however, with escalating conflicts, trade tensions and political transitions all posing potential risk.  Inflation is falling, leading to lower interest rates in the European Union, Britain and the US, as evidenced by the three rate cuts introduced by the European Central Bank in 2024.  Despite this trend, some sectors remain cautious due to ongoing uncertainties and potential supply chain disruptions.  Organisations should prioritise implementing long-term strategies to navigate these challenges and manage associated risks.  Internal auditors should assess how the first and second lines of defence can effectively mitigate increased risks and impacts, focusing on long-term strategies, third-party supplier vulnerabilities and capital planning and management procedures.  Operational resilience Mounting global interdependency, technology-led transformation and recent service outages all point to increased potential for organisational disruption.  Alongside economic, geopolitical and environmental instability, this trend highlights the need for organisations to: Manage operational risk. Plan for contingencies.  Maintain up-to-date business continuity, disaster recovery and cyber response plans.  Having taken effect in January 2025, the EU’s Digital Operational Resilience Act (DORA) applies to financial entities and their third-party information and communication technology (ICT) providers.  Published by the EU Commission, DORA creates a comprehensive framework designed to help financial firms endure ICT-related disruptions and remain operational.  To support this, internal auditors should assess the effectiveness of operational resilience and crisis management protocols, ensuring key threats are addressed and response plans are adequate.  They should also review business continuity measures to ensure emerging risks are considered.  Third-party relations and supply chain Supply chain risks have been heightened by the fragmented geopolitical landscape dominated by ongoing conflicts in Ukraine and the Middle East, protectionism, policy interventions and shifting consumer expectations.  These factors influence organisations’ supply chain strategies and investments, increasing complexity and cost. Here, the robust risk management of outsourced relationships and supplier diversification is critical.  Organisations must also enhance transparency, ethics and environmental, social and governance (ESG) implications in their supply chains, carrying out risk assessments and due diligence of third parties.  Additionally, automation of supply chains using artificial intelligence (AI), blockchain and machine learning is increasing.  Internal audit must, therefore, assess the maturity and resilience of supply chains and advise on the suitability of the supply chain operating model, ensuring all risks associated with current macroeconomic and geopolitical conditions are considered.  Talent management and retention The recruitment and retention of skilled personnel remains a significant hurdle for many employers who continue to face challenges sourcing talent in a candidate-led recruitment market.  Exacerbating factors include the availability and affordability of housing, salary expectations and flexible working demands.  Many organisations are reverting to pre-pandemic working arrangements, with current trends suggesting we will see more of this in 2025.  Employees are increasingly seeking out more meaning, purpose, fulfilment and flexibility in their work. Those organisations that fail to adapt their value proposition to this shift may struggle to attract and retain the people they need.  Here, internal auditors should appraise their organisation’s workforce planning, talent acquisition and retention strategies, with the aim of understanding and mitigating the impact of staff shortages and turnover.  Management oversight should also be assessed alongside initiatives aimed at enhancing the value proposition for employees with a particular emphasis on soliciting employee input and feedback.  Environmental, social and governance  Beyond mere compliance, many organisations view ESG as a means to enhance value, attract talent, strengthen employee engagement and drive financial performance.  The EU’s Corporate Sustainability Reporting Directive (CSRD) mandates in-scope organisations to be transparent and accountable regarding ESG matters.  In 2025, those companies first in-scope for CSRD will be required to disclose detailed ESG information for 2024, and more organisations are set to fall within scope of the Directive in the years ahead.  Increased non-financial reporting requirements, combined with stakeholder expectations, compel organisations to integrate ESG into their core strategies. They must consider both their own “inside-out” impact on people and the environment and the ESG-related risk and opportunities they face from an “outside-in” perspective.  For their part, internal auditors should review their organisation’s CSRD reporting readiness assessments to ensure that the appropriate processes are in place to support the introduction of ESG metrics.  ESG risks and strategies should be aligned with initiatives such as the United Nations’ Sustainable Development Goals and the European Green Deal.  Fraud and financial crime The prevalence and potency of fraud and financial crime is escalating globally. Sophisticated techniques have intensified the velocity, veracity and volume of fraudulent activity, heightening risks as traditional defences struggle to keep pace.  Advances in technology have given criminals greater scope to exploit organisational vulnerabilities, highlighting the need for robust, adaptive approaches to combat evolving threats.  Fraud and financial crime transcend borders, complicating investigations and prosecutions. Increased global connectivity exacerbates these threats, as instability in one region can impact global markets.  In response to these developments, internal audit should assess the strategies, tools and technologies deployed in their organisation to ensure that risks associated with fraud and financial crime are managed, while also providing advice on governance and control matters. Cyber security As we look to the year ahead, cyber security will continue to be a key focus for organisations.  Cyber-attacks and data breaches rose in 2024, with increasing velocity, volume and sophistication, exacerbating threats to business continuity and heightening the risk of both reputational damage and financial loss.  The ongoing digitisation of business models and processes, and increasingly sophisticated technology available to cyber criminals, necessitates the introduction of robust cyber security measures so that organisations can maintain operations, safeguard stakeholder trust and mitigate future attacks.  Organisations must embed cyber security in core processes and raise workforce awareness to reduce the impacts of inevitable cyber-attacks.  Internal auditors should assess existing controls to mitigate cyber security risks and provide assurance on governance and oversight structures across the three lines of defence. Data privacy and governance In a technology-enabled environment, organisations must prioritise data privacy and protection.  The EU’s General Data Protection Regulation (GDPR) enforces strict regulations protecting personal data, granting individuals control over their information.  Organisations must review their data privacy frameworks to ensure GDPR compliance. Non-compliance amplifies legal and financial risks and exposes organisations to reputational damage.  Global interconnectedness magnifies the importance of complying with international data transfer rules.  The Data Protection Commission Annual Report 2023 highlighted issues regarding the unauthorised access and disclosure of personal data, often due to employees’ lack of understanding of their responsibilities.  Internal auditors should assess their organisation’s data privacy and protection framework, ensuring compliance with regulatory requirements in data collection, retention, disclosure and transfer, as well as ensuring sufficient staff awareness and appropriate training. Reviews should identify third-party processors and monitor their access to organisational data. Digital disruption and emerging technology The emergence of AI has garnered many headlines and much excitement among those convinced of its potentially transformative effects on life and business. In tandem with this potential, however, comes a raft of new AI-enabled risks and concerns regarding appropriate usage.  In response, the European Parliament has approved the EU AI Act, effective from 1 August 2024, with the aim of ensuring a balanced approach to AI adoption and safeguarding against risk.  The Act establishes tiered regulatory requirements for AI applications based on risk levels, with prohibitions on certain AI systems coming into effect in February 2025 and the majority of provisions applying from August 2026.  Here, organisations are advised to adopt an integrated approach across legal, compliance, IT and product delivery functions to navigate AI’s complex regulatory environment while also addressing emerging technology risks.  Internal auditors can advise on governance and control matters, engaging with management to enhance AI governance frameworks and internal controls.  Regulatory-driven risk Organisations face an unprecedented level of regulation in 2025. Regulatory environments continue to evolve, requiring compliance in areas such as ICT, AI, ESG, anti-money laundering and data privacy and security.  This regulatory burden challenges organisations to ensure compliance while remaining agile and adaptable to new obligations. Internal auditors must understand the regulatory landscape so that they may thoroughly assess governance structures and controls for compliance.  Management oversight and control structures should also be evaluated to determine the organisation’s preparedness for future compliance requirements.  Internal auditors should also remember that the Institute of Internal Auditors 2024 Global Internal Audit Standards, the main component of the International Professional Practices Framework, are effective since 9 January 2025. Colm Laird is a Director with KPMG Ireland, specialising in risk, governance and internal audit 

Sumer Northern Ireland is gearing up for further growth as it recruits to meet rising demand from the SME sector, says Managing Director Brian Clerkin With optimism on the rise in Northern Ireland’s small-and-medium sized enterprise (SME) sector, Sumer Northern Ireland is poised to support future entrepreneurial success with a growing team and plans for future expansion.  Established in July 2024 when the Belfast office of ASM Chartered Accountants joined the UK-headquartered Sumer Group, Sumer Northern Ireland is led by Managing Director, Brian Clerkin, a Chartered Accountant who has been at the head of the firm for over 12 years. Clerkin joined the Belfast Office of ASM Chartered Accountants in 1997, qualifying as a Chartered Accountant with the firm in 2000. In the years since, he has seen the firm go from strength to strength. “When I joined, we were completely different to the firm we are today. For a start, we were much smaller. There were probably only 20 people in the firm back then,” he says. “I was lucky to spend most of my training contract working for one of the founders, Stephen Sproule, and that was an invaluable experience. I’ve often described it as the best business education I didn’t have to pay for. “Having passed my FAEs and placed in the top ten, I sat down with the Stephen and we worked out a route for the next few years that would give me the best chance of achieving an equity stake.” Clerkin became a Director of the firm in 2004 and a shareholder in 2005. He was appointed Managing Director of the Belfast office of ASM Chartered Accountants in 2012. “Last year, the shareholding directors in the Belfast office decided to join the Sumer Group and we did so officially on 1 July 2024,” Clerkin says. “We were seeing lots of opportunities in the marketplace to take on new work and we felt we needed to make a strategic decision to best enable the firm to grow further and provide opportunities for our future leaders to come through.” Consolidation trend This decision reflects the wider trend towards consolidation that has taken root in the accountancy sector in recent years. “There is a lot of consolidation at the moment, probably to be fair more so in England, Scotland and the Republic of Ireland, than in Northern Ireland to date,” Clerkin says. “Regardless of jurisdiction, however, firms are all facing similar issues, including an appetite for external investment, increased regulation, succession challenges and the need for mid-tier firms to invest in people and technology.” The merger marked Sumer Group’s entry into the accountancy market in Northern Ireland and a new chapter for the team in Belfast. “We were confident this strategic partnership would not only enhance our growth prospects but also expand the range of services and expertise we can offer our clients,” Clerkin says. “Sumer is already a top 15 UK accountancy practice on a mission to champion SME businesses. It was recently recognised in the 2024 Top 50+50 Accountancy Firms by Accountancy Age for being the fastest growing accountancy firm in the UK.” Since the merger, Sumer Northern Ireland has increased its headcount by 20 percent to 120 in response to rising business demand. “We have seen a significant increase in client business since July 2024 coming from clients we already worked with and new clients in the sectors we serve—hospitality, tourism and leisure, manufacturing, distribution, not-for-profit and the public sector, engineering, technology and IT,” Clerkin says. SME outlook in Northern Ireland  Sumer Northern Ireland continues to provide a range of services to SMEs in Northern Ireland, spanning audit and accounting, corporate finance, insolvency, forensic accounting, internal audit and tax services. “The business landscape is constantly evolving, and our clients are subject to an array of economic challenges and opportunities,” Clerkin says. “The issues with our infrastructure and planning systems here in Northern Ireland have been known for years and will take some time to fix. “However, I think businesses in Northern Ireland would like to get a sense that the Northern Ireland Executive recognises these problems and has a tangible plan to address them.  “The blame game, and waiting for Exchequer monies to arrive from London, can’t be an acceptable position to maintain. “Other than that, I think businesses are waiting to see the full impact of the increase in employment costs announced in the 2024 Autumn Budget on both their own cost bases, but also on input costs and consumer confidence.  Despite these challenges, businesses in Northern Ireland are optimistic about their future prospects, according to a Sumer Group report published last September. Produced in partnership with the Entrepreneurs Network, the United Growth report highlighted Northern Ireland as a key region with “particularly bright prospects”.  Seventy-three percent of the Northern Ireland businesses surveyed in the report signalled their intention to increase staff numbers over 12 months, while 78 percent said they anticipated a rise in turnover.  This level of optimism showcased Northern Ireland’s potential as a hub for entrepreneurial growth, the report stated. “I think what we are seeing on the ground is continued growth with cautious optimism,” Clerkin says.  “Northern Ireland has been able to take advantage of opportunities to significantly grow both our tourism and IT industries over the last 10 to 15 years. “If a similar approach is taken to aligning the education sector, local government and the Executive, there is no reason why other sectors such as professional services, high-value engineering, agri-food and biopharma couldn’t also see a similar rise in output and productivity.” Future expansion Sumer Northern Ireland is ready to support this growth with its recent merger allowing the firm to take a “more robust, technology-driven and cost-effective” approach to the non-client facing side of the business in areas such as recruitment, compliance and marketing, Clerkin says. “Personally, I am really enjoying collaborating with the other firms in the Sumer Group to identify and take on cross-referral opportunities, which play to the different areas of expertise within the group,” he says. The firm is now exploring opportunities to grow organically and through potential future acquisitions.  “We expect to announce a number of acquisitions over the course of 2025,” Clerkin says, “and, on the broader stage, the Sumer Group is actively looking at making strategic acquisitions both in those areas of the UK where we are not yet represented and in the Republic of Ireland.”

Urgent policy action is needed to protect the EU from Trump’s protectionist foreign policy and rescue a West increasingly beholden to China and Russia, writes Judy Dempsey  The years after the devastating Second World War shaped the cooperative relationship between the US and Europe. Washington launched the German Marshall Fund to put what was then Western Europe back on its feet.  Inspiring European figures led by French foreign minister Robert Schuman, and supported by the US, founded the European Coal and Steel Community—the precursor to today’s European Union (EU). This was a special era. For Europe, after the nightmare of the Holocaust and Nazism followed by Stalinism, it was about forging an ideology based on peace, democracy, economic prosperity and integration—all in a divided Europe.  In Washington, multilateral institutions prospered. They included the World Bank, the International Monetary Fund, the World Trade Organisation, and US support for United Nations (UN) bodies, such as the International Atomic Energy Agency, the World Health Organisation and other multilateral agencies.  More recently, the US, the EU and many other countries ‘updated’ their approach to multilateralism with the signing of the Paris Agreement. This legally binding international treaty on climate change was adopted by 196 parties at the UN Climate Change Conference in 2016.  By contrast, US President Donald Trump’s inauguration speech this year dispensed with aspects of multilateralism and cooperation, making transnationalism and bilateralism his administration’s leitmotiv.  Trump has walked away from the Paris Agreement and the World Health Organisation, and intends to slap heavy tariffs on EU exports to the US unless, of course, European companies move across the Atlantic…or Europeans buy more American energy…or Europeans spend a whopping five percent of their gross domestic product on defence to take on the costs of their own security.  They will also be encouraged to buy American military equipment. Most European leaders have professed shock at Trump’s pronouncements—as if they didn’t know what to expect. They say they want to get on with the new US administration, but on what basis? Trump is no admirer of the EU. He challenges the bloc’s ideological edifice, built on accountability, the rule of law and fundamental values such as an independent media, an independent judiciary, human rights and asylum—and multilateralism.   These qualities don’t have a ‘shop price’. Trump’s policies do. His focus is on deals and trade-offs.  This may suit some EU countries, such as Hungary and Slovakia, whose leaders are pro-Putin—although it is worth noting here that Hungary, under Prime Minister Viktor Orban, is becoming a hub for Chinese investments which may not please Trump.  There is also Italy’s Prime Minister Giorgia Meloni, the only European leader to attend Trump’s inauguration. She could be pivotal in making the EU-US relationship constructive. Further, European countries are unprepared to strategically work together for their collective security, whether or not they are neutral. Russia’s war on Ukraine should have provided adequate warning to European countries, particularly Germany, to prepare for Europe’s security, the security of Ukraine and their eastern neighbours. It hasn’t. With some exceptions, European countries such as Poland, Denmark and the Nordic states understand the threats posed by Russia. The same cannot be said for the European perception of Trump’s new ‘transactional’ administration which lacks the post-1945 focus on Atlanticism. Instead, Europe’s liberal elites continue to resort to their complacent comfort zones.  Criticising Trump does not provide the basis for concrete policy safeguarding multilateralism, protecting Europe and rescuing a West increasingly beholden to China and Russia. Who in Europe is taking the lead? Judy Dempsey is Non-resident Senior Fellow at Carnegie Europe *Disclaimer: The views expressed in this column published in the February/March 2025 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees or the editor. 

Paula Travers, founder of Travers Accounting Services, has spent close to three decades forging her own path in the world of finance. Now at the helm of her own firm, she reflects on the personal and professional traits that have shaped her success As a child growing up in Donegal, I thought I would like to one day work in a bank. At some point, around the age of 16, I decided that being an accountant would be better.  We had a great accounting teacher in school, and I always enjoyed the subject.  In the pre-internet age, I reviewed as many university prospectuses as I could get my hands on and decided that, rather than study pure accounting, I would do a broader degree.  I opted for commerce at University College Galway (now NUI Galway), choosing the accounting stream in my second year.  After college, I spent the summer working in a bar in London, then came home and applied for as many trainee accountant roles as possible. Eventually, I started work as a trainee with a small practice on the north side of Dublin.  Transitioning from being a college student to training was a shock to the system. I had to work full-time, attend lectures in the evenings and weekends, and I was paid next to nothing. It was tough going, but I was very determined to succeed. Career advancement I would say I have very much steered my own course regarding career advancement.  I learned through experience to trust my gut and make “the next move” when the timing felt right to me. I never let the grass grow under my feet and moved when others may have stayed.  The qualities that have helped me progress my career have included making my immediate boss’s life easier by being reliable, a good communicator and not being afraid to voice my professional opinion when needed.  The ability to communicate effectively to people at all levels has been crucial. As accountants, we work in a people business. It feels good to smash the stereotype of the “boring accountant” by showing you have a personality!  I moved back to Donegal in 2006 at a time when the job market here was quite limited. I spent several years taking on maternity leave cover roles before securing a longer term position as Financial Controller with a company in west Donegal.  Lessons in perspective and boundaries My experience is likely quite different from most pursuing a career in Chartered Accountancy.  My daughter was born during my training contract and I undertook my Professional 3 (now CAP 2) exams when she was only three months old.  I combined my maternity (then just 14 weeks) and study leave, took one week off after my exams, and was straight back to work.  It was very tough, but at that time, the expectation was that you just had to get on with it, and I was very determined to prove that having a child would not derail my career.  I would hope that the situation is better today, but, while statutory leave entitlements have improved considerably, statistics show that motherhood does negatively affect a woman’s career progression, which is unfortunate and unnecessary.  To retain this cohort of talented and experienced professionals, employers must facilitate flexibility above all else. For me, the key to work-life balance remains elusive, however. This is something I’m still figuring out.  As I get older, and with the passing of both my parents within the past 10 years, it is a question of priorities. Work must take priority at certain times, and life must take priority at others.  Challenges that may have stressed me out 20 years ago, don’t anymore. This comes down to perspective and realising that time is the most critical resource we all have.  The biggest challenge for me is establishing a good balance between work and rest. Being self-employed, the temptation is there to work all the hours.  If you do that, however, other important parts of your life and wellbeing will eventually suffer, such as your health (both mental and physical) or your relationships.  It is crucial, therefore, to protect your time at all costs by establishing boundaries that align with your life.  Your energy is a valuable resource; don’t waste it on people and situations that drain you. Have the confidence to set unapologetic boundaries, rather than taking on the role of a martyr. The challenge lies in setting up boundaries and structures in your working life and adhering to them. Always strive to maintain perspective, as it can significantly alleviate the stress of balancing work and personal life.  Finding confidence and support Since becoming self-employed, I have connected with networks of female business owners and joined smaller groups of other accountants, both women and men.  I have only tapped into mentoring and networking since becoming self-employed. These networks have been invaluable in providing a sense of companionship and a recognition that most challenges are shared, giving me the confidence to persevere.  I highly recommend hiring a professional coach, particularly for self-employed people who need a sounding board and a space to offload to someone outside their immediate circle.  A coach can provide valuable insights, help you set and achieve goals and hold you accountable for your actions. Coaching is also great for maintaining focus and staying on track. Twenty-nine years of success The foundational training and experience you receive as a Chartered Accountant sets you up to work in practice, industry or as your own boss. That has been my trajectory.  The advancements in technology and the advent of social media mean that self-employment as an accountant is incredibly accessible, and I have created a business that works for me.  When I entered this profession (29 years ago this month), this was not something I thought was possible.

Julia Rowan answers your management, leadership and team development questions. Question I work in HR in a large organisation. We put great store in supporting managers to select the best talent with job descriptions, interviews, onboarding, managing probation and so on. We stress the importance of feedback and tackle any issues that arise during probation. We often hear that everything is fine. Then, when things go wrong, managers call on us to sort out issues that were known about during probation. We have tried to tackle the issue in many ways, but the problem continues. Answer It is tough to work in HR. HR straddles the challenging divide between ensuring compliance—managing systems, procedures and policies to meet legal and organisational standards—and curating the culture that enables leaders to create an engaging, inclusive and high-performing environment. This dual responsibility requires HR to act as both the guardians of organisational integrity and the architects of a thriving workplace culture. Under pressure, compliance almost always wins. The question you have shared is very common, and there are several issues at play. First, the need to urgently ‘fill a gap’ caused by an impending departure or increased workload may take precedence over finding the right fit. Second, managers often wish to emphasise the positive and worry that developmental feedback will demotivate their team. They might not have established, whether at the interview or during induction, that sharing feedback is a normal practice. Under pressure, they may hesitate, hint or hope that instances of poor performance do not reoccur. Third, managers often lack the language to address subtle issues, such as high performance paired with poor behaviour (or vice versa), and they fear they do not possess sufficient ‘evidence’ to support any concerns they have. The plethora of policies, procedures and laws surrounding these issues can be daunting. Most importantly, managers often believe they are accountable for their team’s performance and that underperformance reflects poorly on them. This perception often drives them, leading them to overlook or conceal issues, even rejecting offers of assistance. HR can help managers realise that nobody can ‘own’ the performance of another person—people own their own performance. However, the manager owns the responsibility for setting appropriate goals, creating the right environment, sharing positive and developmental feedback and running great meetings. HR should assist managers in introducing the topic of feedback during both the interview and induction. This creates an expectation in the new hire that they will receive feedback, making it easier for the manager to access this space. My advice to you is to maintain close communication with managers during probation and avoid depending solely on the probation forms/procedure. Engage with managers about their new hires and reflect on the interview: Are the promised skills evident? What positive feedback has the manager provided to the new hire? What developmental areas are being worked on? Is the new hire the right fit? It may be smart for the senior manager to conduct this process with the hiring manager, as it predominantly concerns the organisational culture, which should be championed by senior leadership. Encouraging senior leadership to fulfil their ongoing role as shapers of organisational culture can be a challenge for HR, requiring consistent advocacy, a clear vision and deep commitment to the cause. If you read one thing... Flourishing: How to achieve a deeper sense of well-being, meaning and purpose—even when facing adversity by Dr Maureen Gaffney. This book helps individuals to build confidence and self-awareness, which is very helpful for leaders. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie.

Special guest speaker and Tesco Group CEO Ken Murphy, FCA, shared his career insights and outlook for the future of business and the Irish economy at this year’s Annual Dinner As Tesco Group Chief Executive, Ken Murphy is at the helm of the UK’s largest grocery retailer with an annual turnover of £61.5 billion and over 4,500 stores in the UK and other markets employing some 330,000 people. Speaking on stage at the Chartered Accountants Ireland Annual Dinner in Dublin on Friday, 24 January, in conversation with MC Sarah McInerney, Murphy discussed his career, expectations for the Irish economy and shifting trends in the world of retail and business. “The most obvious change I’ve seen since taking on this role is the impact technology has on every decision you make today,” Murphy said. “When I joined Tesco, we had about 2,000 people in technology. Today, we have 5,000 and I wouldn’t be surprised if we have 10,000 by the end of the decade.  “It’s just such a critical part of any business today. Almost anything you want to do now has a technology dependency. “The opportunities are phenomenal. AI will absolutely turn everything we know on its head over the next five to ten years. Energy is the only real limiting step I can see at the moment.” Originally from Cork, Murphy studied commerce at UCC and trained as a Chartered Accountant with Coopers & Lybrand (now PwC), beginning his career with Procter & Gamble. By the time he had been appointed Finance Director with Alliance Unichem just a few short years after qualifying, it was clear to Murphy that his professional future lay in the world of business and retail. “I am bad at maths and even worse at physics, but I’m good on numbers. I hated auditing but numbers came easy. At the end of my training, my Audit Partner said to me, ‘Ken, you really enjoy business; auditing, not so much’, which was a gentle nudge to do something else.”  It was when he joined Procter & Gamble that, Murphy says, his career really “got into gear” and remaining open to opportunities has been the cornerstone of his success in the years since.  His advice to young accountants starting out today is to “open more doors than you close—and take risks”. “It doesn’t always work out,” he said, “but you definitely learn more from the failures than the successes and you have a lot of fun along the way, as long as you can take the knocks.” Murphy was appointed Managing Director of Health and Beauty, International and Brands, at Boots in 2013. He subsequently became Joint Chief Operating Officer at Boots UK & Ireland before rising to Executive Vice President, Chief Commercial Officer and President Global Brands at Walgreens Boots Alliance.  He was appointed to the Board of Tesco PLC as Group Chief Executive in October 2020.  Although the transition from health and beauty to food retail proved a steep learning curve, Murphy describes his current role as “the best job I’ve ever had”. “There is a much higher level of intensity in food retailing,” he said. “When you’re a high-street brand like Tesco, the public scrutiny is extraordinary. Nothing prepares you for that. “It is extraordinarily intense, and, at the same time, we are thinking very long term in some of our strategies. I love the business. I love what we do. I love the people I work with. “We have a lot of fun in an intensively competitive environment. We never have a day where we’re bored or thinking, ‘what will we do today?’” Tesco has a growing presence on the island of Ireland, where it operates 181 stores in the south and 50 in the North.  Last October, Tesco committed close to €200 million to the renewal and expansion of existing multi-year partnerships with Irish suppliers in the south.  The retailer is, Murphy said, the world’s leading purchaser of Irish food and drink, buying €1.6 billion of Irish food and drink annually—more than the value of Irish food and drink exported to any country in the European Union. “We have over 500 suppliers in Ireland and three quarters would be classified as SMEs employing 250 people or less,” Murphy said. “One of the things that really struck me when I started this job and went out visiting our suppliers, were the stories they would tell me about how they were basically working out of a shed 35 years ago, then they got a contract with Tesco and now they have a massive organisation. “That’s true of a number of our biggest Irish suppliers who have been extraordinarily successful in partnership with Tesco.  “We love working with our suppliers and helping their brands grow. We are fair and transparent, but we are quite tough. “If you’re successful with us, you tend to be successful with other people. “We like to think we reward real entrepreneurial spirit and innovation–particularly in Ireland where food is enormously important and something we’re famous for globally.” The future fortunes of the Irish economy will not be without challenge, however. “If I look at what Ireland has done in terms of its brand relative to other countries, I’d say we do a pretty good job. We could always do better but, with the work of some of our semi-state bodies, whether it be Enterprise Ireland or Bórd Bia, we punch above our weight,” Murphy said. “The challenge now is, ‘how do we really take that for a spin over the next five to 10 years in a global way?’ and I would be nervous of our dependency on US foreign direct investment.” With US President Donald Trump’s ‘America first’ trade policy starting to gather steam, Murphy cautioned against a cavalier approach to transatlantic relations. “I think Ireland punches above its weight in terms of our influence in the EU and in terms of the US, but we shouldn’t overplay our hand with the US.  “I am very encouraged by the fact that there is hugely deep investment in Ireland over a very long period of time, but I feel we shouldn’t assume our special relationship with the US will endure forever.  “There are competing interests, and we should be mindful of that but there is a lot of capability and competence in Ireland, so I feel like we have an opportunity. “Ireland has the most stable political environment in Europe. We still have one of the best educational standards in Europe. We have a lot of other challenges, but I believe it’s all to play for.”

The experiences of the first wave of entities preparing CSRD sustainability statements hold important lessons on the complexities of the double materiality assessment.  Gareth Martin, Jennie Kealey  and Luke Bisson delve into the details Some of the largest entities in Ireland are in the process of issuing their first mandatory sustainability statement under the EU’s Corporate Sustainability Reporting Directive (CSRD). They are part of the first wave of reporters following transposition of the CSRD into Irish law for accounting periods beginning on or after 1 January 2024.  To identify sustainability information for disclosure, an entity is first required to complete a double materiality assessment (DMA) to determine material impacts, risks and opportunities (IROs) in relation to environmental, social and governance (ESG) matters.   Double materiality is a new concept aimed at enhancing the existing understanding of financial materiality already familiar to accountants. It extends financial materiality considerations to encompass an understanding of both the entity’s impact on the environment and society, and the impact of sustainability matters on its own prospects, performance and position—i.e. double materiality considers both inside-out and outside-in perspectives.  The DMA process must comply with the requirements of the European Sustainability Reporting Standards (ESRS), as this is one of the components of a CSRD limited assurance report under International Standard on Assurance Engagements (Ireland) 3000 Assurance Engagements Other than Audits or Reviews of Historical Financial Information - Assurance of Sustainability Reporting in Ireland (ISAE (Ireland) 3000). ISAE (Ireland) 3000 is the assurance standard that has been adopted in Ireland for sustainability statements prepared under the CSRD. An entity’s CSRD reporting is dependent on a robust DMA output. This is the foundation of the sustainability statement. Here, we offer some practical insights into completing an effective DMA, drawn from our experience supporting clients in this area. Overview of the DMA process  The ESRS do not mandate how to conduct a DMA and, accordingly, each entity should apply judgement to design a DMA process that complies with the ESRS. Figure 1. shows one potential approach to the DMA process. The DMA is comprised of the two interconnected assessments of impact materiality (ESRS 1 3.4) and financial materiality (ESRS 1 3.5). Figure 2 illustrates the double materiality concept. DMA: illustrative examples Some high-level illustrative examples of sustainability IROs are as follows: Impact (positive): Actual positive impact on the environment through adaptation of manufacturing facilities to use renewable energy sources. Impact (negative): Potential negative impact on the working conditions of workers in the value chain through contracting of suppliers in geographies with sub-standard labour laws. Risk: Risk of increased costs in the form of fines from non-compliance with wastewater disposal regulations. Opportunity: Opportunity to increase revenues from sustainability conscious customers through development of biodegradable products. Key practical DMA considerations Some practical considerations should be factored into the DMA process as required by the ESRS. 1. Disaggregation of the assessment The appropriate level of disaggregation must be determined before beginning the DMA process.  The assessment may be disaggregated by business division, country of operation, subsidiary, significant site or significant asset (depending on the nature of the entity) in order to effectively identify IROs at the correct level of granularity and assess their materiality.  For example, groups must consider whether the DMA should be performed centrally at the group level, or at a disaggregated level. 2. Stakeholder engagement approach Stakeholders include key actors in the value chain, such as suppliers, employees and customers, but can further comprise groups such as indigenous communities and silent stakeholders, such as nature. Therefore, while conventional methods of engagement like surveys, interviews and workshops are commonly used, it is also important to consider alternative approaches. This might include analyses of ecological, pollutant or geographical data. Engagement may also be indirect, through stakeholder representatives or subject matter experts. Stakeholders should only be engaged in the assessment of topics where they have the appropriate experience and/or expertise required to provide accurate and reliable input. They may be mapped to specific IROs on the longlist to facilitate the provision of IRO inputs, where appropriate, to their position in the value chain. 3. Value chain boundary When performing the value chain analysis step of the DMA process, management should determine the point or “boundary” in the value chain up to which information should be collected. If this boundary is not effectively defined during the DMA, there is a risk that IROs related to components of the value chain will not be identified. Consequently, value chain information may not be presented completely in the sustainability disclosures.  For example, if only first-tier suppliers are considered as part of the value chain, the impacts of second- or third-tier suppliers connected with the entity’s operations may be overlooked in the DMA, even though they are within the scope of impact materiality. 4. Material financial effects Sustainability risks and opportunities are often drafted without properly considering their material effects on financial position, financial performance, cash flows, access to finance or cost of capital—or evaluating their consistency with the information disclosed in the financial statements. Likewise, it is common for management to only consider and score the likelihood and magnitude of a risk or opportunity, even though ESRS 1 stipulates that it is the likelihood and magnitude of the financial effects that should be assessed. 5. Dependencies on natural, human and social resources Risks and opportunities derive not only from impacts, but also from an entity’s dependencies on natural, human and social resources. It is therefore important for management to consider dependencies as potential sources of risks and opportunities when assessing the financial effects triggered by sustainability matters. For example, a manufacturing entity should consider its dependencies on energy, raw materials, customer relationships and healthy and skilled workers, among others, when drafting and assessing the materiality of IROs on the longlist. Dependencies on biodiversity and ecosystems should also be identified and assessed under the ESRS 2 IRO-1 requirements of ESRS E4. This includes an assessment of sites located in or near biodiversity-sensitive areas.  6. IRO scoring approach The ESRS do not define an IRO scoring approach. However, the factors for scoring are outlined in ESRS 1 and elaborated on in European Financial Reporting Advisory Group Implementation Guidance 1 (EFRAG IG 1) Material Assessment. Scoring should also align with the entity’s existing risk management framework where possible. ESRS 1 does prescribe the use of an appropriate quantitative and/or qualitative threshold to determine which IROs are material.  EFRAG IG 1 provides graphical representations of such materiality thresholds in both columnar and matrix formats. It is important to note that this guidance is purely illustrative. Management should document the rationale supporting their choice of scoring scales and thresholds—and ensure that these decisions have undergone robust review and validation. 7. Entity-specific disclosures When an entity concludes that an IRO is either not covered or not covered with sufficient granularity by an ESRS—yet is material due to its specific facts and circumstances—additional entity-specific disclosures must be provided to enable users to understand the sustainability-related IROs. Given that sector-specific standards have not yet been incorporated into the ESRS, it is paramount that management implements robust processes to assess potential IROs to identify any that are not aligned to the ESRS topical standards. For such topics, entity-specific disclosures should be drafted which adhere to the general disclosure requirements set out in ESRS 2 and meet the qualitative characteristics of information in accordance with ESRS 1. DMA: useful insights Here are eight insights that can be applied to support the DMA process: 1. The DMA process requires detailed step-by-step planning. Often, input is needed from across the organisation, particularly where a materiality assessment of sustainability information is being carried out for the first time. 2. Before beginning the DMA, an entity’s organisational structure should be appropriate for management to effectively lead and oversee the DMA process, and sufficient training should be provided. Identifying key internal stakeholders, such as members of the sustainability, environmental and financial reporting functions, will facilitate an effective assessment, as will forming a working group to co-ordinate day-to-day aspects of the DMA. 3. Validation roles for key decisions at each stage of the DMA should be clearly defined and documented. A board level steering committee could be formed for the purpose of reviewing and validating key decisions before the working group proceeds to the next stage of the process. 4. Documentation of the DMA process should begin at the inception of the assessment. This documentation should be clear, specific and detailed enough to enable assurance practitioners to understand and assess each stage of the DMA process. A centralised change log should be maintained to provide a clear and traceable trail of amendments and judgements, including their supporting rationale, over the course of the DMA. 5. Methods of engagement likely to garner the most effective coverage of views across all affected stakeholder groups should be considered. These might include surveys, interviews and workshops. A first step here might involve mapping affected stakeholder categories to sustainability matters, and prioritising different categories for engagement purposes. 6. Management should gain an understanding of the ESRS disclosure requirements, datapoints and transitional reliefs early on in the DMA process so they can effectively map material IROs to disclosure requirements and implement interconnectivity between the DMA process and disclosures. 7. When drafting the longlist of IROs and determining material sustainability matters, it is important to benchmark against disclosures prepared by peers and early reporters. This is especially pertinent in the first year of reporting, in order to effectively compare the information that is being disclosed within sectors and industries. 8. A plan for the refresh of the DMA should be agreed on from the outset. Management should implement an annual review of the DMA, comprising procedures such as a landscape review and revalidation of the DMA results. The circumstances requiring a full refresh of the DMA should be defined in accordance with the requirements of ESRS 1 and EFRAG IG 1. The frequency at which a full refresh should be performed regardless of change events must also be considered. Planning for quality and efficiency The DMA is a complex exercise, and each organisation will encounter its own challenges when preparing for the first year of CSRD reporting.  Despite this, there are learning points that can be applied broadly to the DMA in order to improve the quality and efficiency of the process.  Planning each step of the DMA and establishing a process compliant with the requirements of the ESRS will allow entities to develop and perform a robust DMA. Gareth Martin is a Managing Director in  Deloitte’s Sustainability Reporting and Assurance team Jennie Kealey is a Manager in Deloitte’s Sustainability Reporting and Assurance team Luke Bisson is a Senior in Deloitte’s Sustainability Reporting and Assurance team  

The AI revolution is well underway, driving unparalleled progress in business and finance. Microsoft Ireland CFO Áine Nolan shares her experiences and insights Artificial intelligence (AI) represents a valuable opportunity for Ireland to enhance our productivity and solidify our digital leadership in Europe.  This is according to Áine Nolan, FCA and Chief Financial Officer with Microsoft Ireland, who spoke at the recent Chartered Accountants Ireland Technology Conference, about how AI is revolutionising the finance function and driving unprecedented efficiencies.  “We have a thriving tech scene in Ireland, a highly educated workforce and really smart government policies. We can really become a hub for AI advancements,” Nolan said. The potential is significant, driven by the rapid emergence of AI as a commercial proposition and its popularity with users in both their lives and work. “The rate of AI adoption currently is somewhat unprecedented,” said Nolan. “Generative AI is capturing, distributing and democratising intelligence for everyone and that is a powerful concept.”  AI uptake in Ireland Microsoft Ireland recently partnered with Trinity College Dublin Business School to conduct research into the uptake of generative AI in the Irish market. Published in March 2024, the Generative AI in Ireland 2024 report found that 49 percent of respondents were already using the technology in some form in their organisation. “This research is less than a year old and already out of date, which just shows you how fast the rate of uptake is. We are due to release new research in March this year, which shows that adoption rates have since risen to about 70 percent,” Nolan said. Despite its proliferation in Irish workplaces, not all employers are, as yet, fully equipped to manage the implications of the AI age. “Through our research with Trinity, we have found that employees are bringing their own AI to work, with or without their employer’s consent. This ‘shadow’ gen AI culture creates risks for employers who really need to have guardrails in place,” Nolan said. “There is also sometimes a view that AI is just an add-on productivity tool you can slot into your existing workflows, but this fundamentally underestimates the magnitude of behavioural change and organisational transformation needed to unlock its value.” It will take time and a great deal of change management to integrate AI successfully as a new dimension of work, Nolan said. “People often make the mistake of simply asking how they can apply AI to their existing processes, but, fundamentally, they should be asking what they need AI to do and how it can make their processes more efficient or facilitate innovation—even creating a new service for our customers, for example.” The dawn of the AI agent Although many people currently use AI as a kind of “virtual assistant”, helping with everyday tasks, such as organising their work calendar or automating note-taking during meetings, the technology is set to assume a far more prominent and proactive role. “In the future, AI will operate on your behalf—as an agent—allowing you to eliminate tasks from your plate altogether,” Nolan explained. “This might mean making autonomous decisions for your IT helpdesk and, eventually, managing your full device refresh, from examining your POs right through to ordering new devices, checking your budgets and getting the necessary human approvals at the end of the process.  “A more complex example might involve AI looking after lead generation for your business by sourcing and emailing potential customers or acting as a customer support agent in a much more complex way than a chatbot, where it is actually making decisions on behalf of your organisation.” Microsoft and AI in finance Already, Nolan and her finance team at Microsoft Ireland are reaping the benefits of the organisation-wide implementation of the software giant’s AI technology. “Our global CFO Amy Hood consistently challenges our finance team to use our own technology to improve our processes. Her mantra is really clear—by adopting innovative technologies, finance will strengthen its business leadership through compliance, accuracy and efficiency.” And, as CFOs across all organisations assume an increasingly strategic business role, AI will become even more fundamental to their work day-to-day. “The role of the CFO is changing rapidly and, as finance leaders, we need to play a lead role in developing a clear AI strategy, ensuring our organisations have the necessary capability, technology and stakeholder buy-in. The rate of AI adoption is unprecedented and we need to be ready,” Nolan said. “In the last 12 months alone, I have seen big changes in how our own AI at Microsoft has been able to generate intelligent comments for us, as we work through our balance sheet and P&L variance analysis,” Nolan said. “We have had a big win in the efficiency of our contract review process, where we once had a full revenue recognition team analysing all of our contracts to account for them. “Now, we have AI reading 10,000 contracts a year and sorting them into low-, medium- and high-risk categories for us.” This means the revenue recognition team is only required to review high-risk contracts manually.  “We’ve had other big wins in journal entry anomaly detection, which has helped reduce risk on our financial statement—and our AI is now able to produce the first draft of the statement, reducing time spent on this work by about 15 percent.” Microsoft’s generative AI is creating models that recognise patterns in the financial planning and analysis data used to predict outcomes. “We’ve moved from bottom-up to top-down budgeting, reducing time spent on budgeting analysis from six months to six weeks,” Nolan said.  “This means we have much more time to think strategically and analytically—and to have a seat at the table in terms of our influence in the wider organisation. For us, AI is well and truly here.”

Ormsby & Rhodes Managing Partner David Marsh tells Barry McCall why one of Ireland’s oldest accountancy firms has embraced consolidation to future-proof its legacy In an announcement that took many by surprise, Ormsby & Rhodes, one of Ireland’s longest established accountancy firms, revealed in January that it had agreed to merge with AAB, a UK firm backed by private equity. Established in 1911 and consistently ranked in the top 20 firms in Ireland, Ormsby & Rhodes has revenues of over €7 million and provides audit, accounting, tax, payroll, company secretarial and business advisory support to a wide range of clients nationwide.  The merger strengthens the firm’s international presence and access to the European market while also propelling AAB past the €120 million revenue mark. “If you had asked me a year ago if a merger was on our agenda I would have said no,” says Ormsby & Rhodes Managing Partner David Marsh. “Ours is a 100-year-old firm doing very well, why would we sell?” Consolidation: the way forward Attendance at an event hosted by Chartered Accountants Ireland, at which one of the speakers spoke about his own firm’s merger, prompted a rethink.  “I spoke to him afterwards and he explained that consolidation is the future for the sector; that there is so much regulation and other new developments coming, firms cannot stand still, or they will fall behind. They need to grow and move forward,” Marsh explains. It is not a question of growing at the expense of others but rather positioning the firm to take full advantage of opportunities for growth.  “There is lots of work out there for everyone, but you need to be large enough, and have the necessary resources in terms of staff, technology and international reach, to service clients,” Marsh says.  “Consolidation is also good for the Institute as it means there are fewer firms to regulate in an increasingly complex world.” Protecting a legacy Before agreeing to any deal, Marsh was adamant that Ormsby & Rhodes’ core values and identity would be fully preserved. “I am passionate about Ormsby & Rhodes and the legacy we have to look after. That is very, very important to me. Following our merger with AAB, we still have the same identity and the same values.” Ormsby & Rhodes is the oldest accountancy firm in Ireland still trading under its original name. It was re-established in 1911 by Geoffrey Lewis, Neil Payne and Declan O’Luanaigh “We have clients who have been with us for over 50 years,” Marsh says. “The length of time clients stay with us is quite amazing. They don’t leave us. The average tenure of our top 10 clients is over 20 years.  “Some are large-scale businesses that could easily move to a Big Four firm, but they have chosen to stay with us because of the level of service we provide.  “We have the same partners and the same identity and ethos, and we will keep on doing what we did before; that’s what AAB wants us to do.” Succession and the next generation Marsh first joined Ormsby & Rhodes as an audit manager in 1991 having trained with EY and worked at it’s Jersey office for four years before returning to Ireland.  He subsequently left Ormsby & Rhodes in 1993 to set up his own firm, DJ Marsh & Associates.  “The business went really well,” Marsh recalls. “I started with seven clients and had more than 100 by the time I accepted the offer to merge the firm with Ormsby & Rhodes in 2000.” Three senior partners have retired from the firm in recent years, prompting Marsh to carefully consider its future leadership.  “I decided to bring young partners through. I am 64 but most of our partners are in their forties with some in their early thirties. It’s quite unusual to have an age-profile like this. Four of our 10 partners are female. The heart of the firm are these 10 partners.” The decision to explore a possible merger was taken following a meeting of the firm’s equity partners early in 2024.  “After that, we held meetings with others in the industry to get their views and opinions and we decided it was the right thing for us,” says Marsh.  “The priority for us was to form a partnership with a company we could grow with while also retaining our core identity. We didn’t want to just be subsumed into a larger organisation.” This is where AAB came in. “AAB is a Scottish firm that was the same as us five years ago when they decided to grow the business through consolidation with private equity backing,” Marsh says. “We had a number of meetings with them, and we found both sides liked what the other was doing.  “Chartered Accountants Ireland was great throughout the process. They were so quick at coming back whenever we had questions.” The benefits of the merger for Ormsby & Rhodes are significant, the first being the firm’s scope to service clients doing business in the UK.  “If one of our clients is doing business in the UK, we now have AAB to look after them and we can look after AAB clients here in Ireland,” says Marsh. Enhanced technology is another benefit: “We were about to spend a huge amount on new and upgraded systems. AAB had all of that and we are now able to access their platforms, creating efficiency and additional capacity to service clients.” Future of accountancy While he sees the advent of newer technologies such as artificial intelligence (AI) as important, Marsh believes the human touch will always be critical in the accounting profession and the wider business world. “AI is just another tool we will use. At the end of the day, it’s the accountant that makes the decisions and signs off on the accounts,” he says. Environmental, social and governance (ESG) principles are another key focus area for accountants currently.  “AAB is very big in ESG and has two partners and a team of four in this area. We have large clients who need this support. If a company has private equity investment, it needs to complete sustainability and ESG reports and the same applies to multinational firms,” Marsh says. “Transfer pricing is also huge, and AAB has a dedicated team for this, which is really important for us.  “For example, tax in the UK is changing very rapidly, and you have to be on the ball there. Corporation tax is 26 per cent in the UK and that’s where transfer pricing comes in. You need to get it right.” Marsh sees further potential for AAB’s Virtual Finance Service in the Irish market. “Mid-sized companies may not have the resources to pay a full-time chief financial officer (CFO),” he explains.  “Instead, they can outsource the CFO role to AAB on a cost-effective basis and get access to an experienced professional who will spend part of their time acting as CFO for them and the rest of their time looking after other clients.” Right now, Ormsby & Rhodes is preparing to host the Europe, Middle East and Africa conference of the BKR International association of independent accounting and advisory firms in Dublin in June.  “BKR International is a referral association, and we have been a member for 30 years. We have developed relationships with member firms in countries including France, Germany, America and Australia. It is a fantastic association for developing relationships and new business,” Marsh says. More than 200 delegates are expected to attend the conference. “It represents a huge opportunity to promote Ireland; to show what we can do here; and generate new business for ourselves and other member firms.” Marsh’s ultimate ambition for Ormsby & Prentice stretches much further into the future, however. “We want to be a very strong mid-tier partner led firm with a reputation for providing excellent service to clients,” he says.  “I believe we can double or treble in size over the next five years but, ultimately, I want to grow a practice that is sustainable for the next 100 years.  “That’s what this is about. I like to think Ormsby & Rhodes, with AAB, will grow for another century.”

Welcome to the latest edition of Technical Roundup. In developments since the last edition, Technical Alert (TA) 02/2024, which was issued in June 2024, has been updated to reflect the transposition the Corporate Sustainability Reporting Directive (“CSRD”) into Irish legislation and the issue of ISAE (Ireland) 3000 by IAASA.  The Financial Reporting Council (FRC) has launched a campaign to assist SMEs with access to audit services and to support their growth aspirations.  Read more on these and other developments that may be of interest to members below. Financial Reporting The UK Endorsement Board (UKEB) has published the 2025 consolidated UK-adopted international accounting standards on behalf of the UK Government. UKEB has issued a final call for comments on its Draft Comment Letter in response to the IASB’s Exposure Draft Provisions – Targeted Improvements. Comments are welcome until close of business on 10 February 2025. The Financial Reporting Council (FRC) has published a draft three year strategy for 2025-28 detailing its commitment to supporting UK economic growth.  It has also issued a draft Plan and Budget for 2025-26. The International Accounting Standards Board (IASB) recently released a webcast explaining the amendments to IFRS 9 and IFRS 7 regarding power purchase agreements. The webcast explains the targeted amendments to both standards which aim to help companies better report the financial effects of nature-dependent electricity contracts The IASB has released its January 2025 update and podcast. The FRC has launched a campaign to assist SMEs with access to audit services and to support their growth aspirations.   EFRAG, the European Financial Reporting Advisory Group, is currently inviting financial statement preparers and users to submit their feedback on the voluntary application of IFRS 19 Subsidiaries without Public Accountability: Disclosures, allowing eligible subsidiaries to prepare reduced disclosures under IFRS Accounting Standards. The feedback will assist EFRAG in performing a cost-benefit analysis of applying the standard. The deadline for submission is 28 February 2025. The International Public Sector Accounting Standards Board (IPSASB) has recently issued Amendments to IPSAS Standards: Specific IFRIC Interpretations. Auditing Sample Engagement Letter Terms for CSRD Technical Alert (TA) 02/2024 which was issued in June 2024 has been updated to reflect the transposition the Corporate Sustainability Reporting Directive (“CSRD”) into Irish legislation and the issue of ISAE (Ireland) 3000 by IAASA. The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have launched an integrated effort to support effective implementation of their landmark standards aimed at advancing trust and transparency in sustainability reporting and assurance. The Financial Reporting Council (FRC) has published the final report from its market study into the assurance of sustainability reporting. The 2024 study found that while the UK’s market for the assurance of sustainability reporting is functioning well, there are concerns over quality consistency amid growing demand. The report recommends three key actions; establish a clear UK policy framework; create a unified regulatory regime and improve the calibre of available information on the quality of sustainability assurance to support how the assurance market functions. Insolvency The Insolvency (Amendment) Rules (Northern Ireland) 2024 confirmed that from 10 January 2025 the value of a vehicle disregarded as part of an asset value for a debtor seeking a debt relief order in Northern Ireland will increase from £2,000 to £4,000. Anti–money laundering and sanctions Please join us for Chartered Accountants Ireland free webinar on suspicious transaction reporting at 10AM on 12 February 2025. Accountants in practice, as designated persons under Irish Anti-Money Laundering legislation, have a statutory obligation to report suspicious transactions to both the Financial Intelligence Unit (FIU) of An Garda Síochána and the Irish Revenue Commissioners. Join representatives of both An Garda Síochána and the Revenue Commissioners on Wednesday 12 February as they provide an overview of how to report on the recently updated FIU GoAML system, as well as the Revenue system. This event will be of interest to accountants, trainees and anyone in the firm of a designated person who may come across something suspicious which might raise the obligation to make a suspicious transaction report. Click here to learn more and to book your place today: Suspicious transaction reporting: all you need to know - ..rteredaccountants.ie The Deputy Governor of Central Bank of Ireland Derville Rowland spoke recently on the topic of Innovation and technology in financial crime. She referenced some emerging risks and how the new AMLD 6 package will meet them : the use of AI is acknowledged under the package. Firms must ensure that human oversight is applied to decisions proposed by AI tools that may impact customers in certain areas. Details of Virtual IBANs which are linked to other payment accounts will have to be recorded in member states’ Bank Account Registers to allow law enforcement to trace funds. The concept of Information Sharing Partnerships is introduced. Credit and financial institutions will be enabled to share information relating to high-risk customers, subject to important protections. The Central Bank of Ireland recently published a new Behind the Data (BTD) paper on Irish payment fraud statistics. Click for insights from Irish Payment Fraud Statistics. Sustainability The International Sustainability Standards Board (ISSB) is hosting an event on 25 February 2025 to discuss disclosures about transition plans - IFRS S2 Climate-related Disclosures.  The Financial Reporting Council (FRC) has published the final report from its market study into the assurance of sustainability reporting. The GRI Academy has launched a new ESRS Reporting program for all reporters to prepare to navigate the Corporate Sustainability Reporting Directive (CSRD). In its recent article, the GRI discuss some practices and steps that companies can take to mitigate against the risk of greenwashing. The International Sustainability Standards Board (ISSB) has released a podcast hosted by ISSB Chair Emmanuel Faber and ISSB Vice-Chair Sue Lloyd discussing the latest developments around the ISSB. In its article entitled “CSRD & CSDDD: key provisions and concepts”, Accountancy Europe look at some of the key features, concepts and differences between the two Directives. The IFRS Foundation has published a guide entitled “Applying IFRS S1 when reporting only climate-related disclosures in accordance with IFRS S2”. This guide is intended to support the implementation of the International Sustainability Reporting Standards Other news The Companies Online Registration Environment (CORE) access was restored on 29 January.  If your Annual Return is late and you have already contacted the Annual Returns section in the CRO they will be in touch with you soon. The Irish Pensions Authority recently published a revised personal retirement savings account (PRSA) code of conduct. The revised code includes additional sections on conflicts of interest, risk warning, and product oversight and governance. PRSA providers must comply with the code from 1 August 2025. The most recent episode of IFAC’s podcast series The Fast Future with IFAC discusses how small and medium sized practices can embrace technology. The FRC hosted a webinar on Monday 3 February for insights into the feedback heard so far during its consultation on proposed revisions to the UK Stewardship Code. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

To pass your CAP 2s and FAE exams in 2024/25 you need to be implementing a rigorous study plan during the year and as you approach qualification an ACA finalist will need to implement the same approach and format to your job search and career planning. If you don't structure your job steps through a considered strategic plan you risk your career pathway making random jumps and just falling into opportunities. Here are a few suggestions to help you build the beginning of your effective long-term career plan : In 10 years as an FCA what role do you think you will want to be settled into ? What does this picture look like ? – Map it out for yourself in detail.. At 5 years PQE (Post Qual Experience) what role do you anticipate holding? It should be a good springboard to your 10 year target. It should be in line with the Career Pathway map - https://www.charteredaccountants.ie/Career-Pathway Do an honest skillset audit – Document the skills you are proven to be strong on and identify what you are lacking and will need to shore up / develop if they are important to your 5/10 year plan Speak to people – constantly! - make your career-map part of your business conversations and put your ambition to go out there in a particular direction with people. Document your plan – write it down – keep a detailed spreadsheet- track and analyse it like a full ongoing long-term project that you give monthly priority to. (I have seen very average performers reach lofty career heights by giving sufficient time and attention to their career projects and ambitions – don’t put it low on your to-do list). If you aim to move after qualifying then take a look at the key actions and considerations here : https://www.charteredaccountants.ie/docs/default-source/careers-recruitment-dept/ca-jobs-checklist.pdf?sfvrsn=2 Start meetings with a few mentors and document the tips they give you in your Career File. Build your personal brand both in work and online / LinkedIn Start to build your personal network in line with key career influencers Put a slot in your diary each month to spend a few hours on your Career project. There is of course a lot more to building a formal career plan but these are a few initial considerations and initial building blocks to put in place. Once you qualify make sure you connect with your ICAI Careers Team to map out the rest of the plan and review the wide variety of ACA paths and market opportunities. Dave Riordan (ACA) Recruitment Specialist & Career Coach https://www.charteredaccountants.ie/Career-Pathway