Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month. In developments since the last edition, the Central Bank of Ireland has appointed Mary-Elizabeth McMunn as Deputy Governor, Financial Regulation.  She will take up her role on 1 January 2025.  The International Accounting Standards Board and the International Sustainability Standards Board recently launched a webcast series to discuss how IFRS Accounting Standards and IFRS Sustainability Disclosure Standards complement each other. Read more on these and other developments that may be of interest to members below. Audit and Assurance The Institute has published new guidance ‘Technical Alert 04/2024 – Sample CSRD Limited Assurance Report in accordance with ISAE (Ireland) 3000 as required by Section 1613 of the Companies Act 2014’. The Technical Alert has been prepared to assist members reporting on the limited assurance engagements under the Corporate Sustainability Reporting Directive (“CSRD”) and in compliance with International Standard on Assurance Engagements (Ireland) 3000 . The FRC has published initial feedback on its market study into the audit market for NHS providers and Integrated Care Boards (ICBs). Financial Reporting The Financial Reporting Council (FRC) are holding a webinar entitled “How charities can prepare for major amendments to FRS 102 “ which will discuss the impact of the recent amendments to FRS 102 on charities. The FRC has issued FRED 86-Draft amendments to FRS 101 Reduced Disclosure Framework 2024/25 cycle. This proposes some changes to FRS 101 as part of the annual review of the standard. The International Accounting Standards Board (IASB) has announced that it has completed its decision making on the revised IFRS Practice Statement 1 Management Commentary, with an updated Practice Statement expected to be published in the first half of 2025. The IASB has released its IFRS 19 disclosure tracker. This tracker will assist preparers in applying the new standard and maps the disclosure requirements in IFRS 19 Subsidiaries without Public Accountability: Disclosures to their equivalent disclosures in other IFRS Accounting Standards. The IASB has issued its December 2024 update and podcast. Following its exposure draft on Contracts for Renewable Energy earlier this year (to which the Institute issued a response to), the IASB has acted swiftly in issuing targeted amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. These amendments are intended to help companies better report the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements. The FRC has issued a draft three year strategy for 2025-28 along with a draft Plan and Budget for 2025-26. In its recent podcast, the IFRS Interpretations Committee chair, Bruce McKenzie discussed some of the decisions made at its recent committee meeting held on 26th November. This includes discussions on; Application of IAS 29 to identify when an economy becomes hyperinflationary Expenditure on carbon credits and R&D activities, and whether these meet the requirements in IAS 38 to be recognised as an intangible asset Accountancy Europe has issued its December 2024 Newsletter. EFRAG, the European Financial Reporting Advisory Group, has announced that it has completed its due process regarding the Amendments to IFRS Accounting Standards contained in Annual Improvements to IFRS Accounting Standards – Volume 11. Following the completion of this due process, it has submitted its Endorsement Advice to the European Commission, recommending the endorsement of the Amendments. EFRAG has published its November 2024 update and have also published an updated Endorsement Status Report, which reflects the publication of the targeted amendments to IFRS 9 and IFRS 7 discussed earlier. The IFRS Foundation have published proposed updates to its Due Process Handbook to reflect the creation of the International Sustainability Standards Board (ISSB). The UK Endorsement Board (UKEB) has published its Final Comment Letter and Feedback Statement on the IASB’s Exposure Draft on Equity Method of Accounting–IAS 28 Investments in Associates and Joint Ventures The IFRS Foundation’s annual conference will be held at the Leonardo Royal Hotel London Tower Bridge on 23–24 June 2025 with details to follow in early 2025. Andreas Barckow, Chair of the International Accounting Standards Board (IASB), delivered a keynote address at the EFRAG Conference on 10 December. He explained how IFRS Accounting Standards build transparency and trust in financial markets and connect global markets through a common financial language. Sustainability EFRAG has added further non-authoritative technical explanations to its compilation of explanations that are intended to assist stakeholders in the implementation of the European Sustainability Reporting Standards (ESRSs). EFRAG has announced that it has delivered its technical advice on the Voluntary SME (“VSME”) standard to the European Commission. The VSME is designed for undertakings that are not in the mandatory scope of the Corporate Sustainability Reporting Directive (‘CSRD’) and the standard aims to replace the current practice of multiple uncoordinated data requests for ESG information with a standardised set of information that stakeholders can use to fulfil their reporting needs. EFRAG has also released some educational videos on the VSME standard. The International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) recently launched a webcast series to discuss how IFRS Accounting Standards and IFRS Sustainability Disclosure Standards complement each other.   The ISSB has issued its December 2024 update and podcast. Accountancy Europe has published its December 2024 update. The FRC, in its role as the Secretariat to the UK Sustainability Disclosure Technical Advisory Committee, has published the Committee’s final recommendations to the Secretary of State for Business and Trade, recommending endorsement of the first two IFRS Sustainability Disclosure Standards for use in the UK. The committee has recommended some minor amendments to IFRS S1 and S2, as well as requesting additional guidance to assist with implementation. Anti-money laundering /sanctions The European Commission: Directorate-General for Migration and Home Affairs, has in recent months issued a report mapping and providing an in-depth analysis of High-risk areas of corruption in the EU The report is described by the Commission as a report to advance the EU’s Anti-Corruption Strategy to combat corruption and reduce its harm to society. It maps high-risk areas and provides an in-depth analysis of the nature of and reasons behind these risks. Artificial Intelligence (AI) The European Commission recently hosted 2 webinars one on November 28 2024 exploring the Architecture of the AI Act and offering participants an in-depth look into the AI Act objectives, its risk-based framework, and the governance mechanisms it introduces, including the central role of the EU AI Office. The event was public and open to everyone. The recording of the webinar and the slides can be accessed here. Second Webinar on the architecture of the AI Act was held on 17 December 2024 where AI Office experts continued exploring the nature of the AI Act to enable its smooth implementation. Click for further details and to access a copy of the recording. Central Bank of Ireland (CBI)  CBI has published - a review of the regulatory framework for credit union lending, and launched a public consultation on proposed changes to the framework. - its latest Q4 2024 Quarterly CBI Bulletin  which contains its projections for the Irish economy. The report headlines steady growth and lower inflation in the Irish economy, but that geo-economic risks are rising. -the first edition of its ‘Investment Funds Supervision Bulletin’. CBI states that the purpose of the Bulletin is to inform industry participants of the Central Bank’s areas of recent and ongoing focus, and to provide an insight into future priorities. It is intended that the Bulletin will complement other forms of industry engagement, and CBI hopes to publish a bulletin of this nature annually. CBI also welcomed the publication this month of the outcome of the OECD review of Central Bank of Ireland’s consumer protection supervisory functions. It had commissioned the OECD to review its supervisory functions against the global standards for financial consumer protection. The OECD assessment found that the Central Bank is strongly committed to fostering and upholding the G20/OECD Principles, which are the international standard for effective and comprehensive financial consumer protection frameworks. It also found that CBI aligns with international standards and that its practices are consistent with peer regulators. Finally in CBI news, CBI has appointed Ms Mary-Elizabeth McMunn as Deputy Governor, Financial Regulation.  She will take up her role on 1 January 2025. Legislation The Dept. of Enterprise Trade &Employment (DETE) has announced that the Minister of State for Trade Promotion, Digital and Company Regulation has signed the Commencement Order for the Screening of Third Country Transactions Act 2023 with all provisions of the Act commencing on 6 January 2025. Readers will find more information on the Act in a news item of  November 2023 on the Screening of Third Country Transactions Act 2023 and details of and a link to draft guidance issued under the Act in our news round up dated 1 March 2024. Other In an interesting and thought provoking piece entitled “10 principles for policymakers to reduce administrative burdens for companies”, Accountancy Europe have shared some recommendations for policymakers to ensure that the expected reforms on simplification and administrative burden reduction are genuine and impactful for businesses. The Financial Reporting Council (FRC) has published a consultation proposing revisions to Technical Actuarial Standard 300: Pensions (TAS 300) to reflect recent developments in pension scheme funding. The European Securities and Markets Authority (ESMA) is hosting its conference “Shaping the future of EU capital markets” on 5 February 2025 in Paris, France.  The latest December 2024 newsletter has been issued by the Irish Charities Regulator. It includes links to the Regulator’s overview of the latest charities’ legislation and protecting your charity from cybercrime. Please click here to read the Regulator’s overview of the Charities Amendment Act 2024. Please click to listen to a podcast from Carmichael, the training and support body for non-profits. Here they speak with Director of Civil Enforcement with the Corporate Enforcement Authority Fallon Judge on dealing with compliance with company law. The Director discusses her role in the CEA and the work of the Corporate Enforcement Authority in relation to charities and their directors. Charities with an annual reporting deadline of 31 January 2025 are being encouraged to submit their annual return to the Charity Commission for Northern Ireland on time. The Minister for Trade Promotion, Digital & Company Regulation, Dara Calleary TD has appointed Ms Aisling Kennedy as Chairperson of IAASA from 21 December 2024. Aisling is a current member of the board and has broad experience as a company director in a range of areas.   Wishing all of our members a very happy Christmas and all the best for 2025!     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.

  In this week’s Sustainability/ESG bulletin read about the ESRI report on collective climate action, Ireland’s commitments to improve the sustainability of ICT procurement, and a report on Ireland’s recycling rates. Also covered is the 2027 cap on ETS2, responses to the EU-Mercosur trade deal, news from Europe on SME sustainability reporting, as well as a podcast, a new resource for finance professionals on building the business case for nature, articles, and updates to the Chartered Accountants Ireland Sustainability Centre.   Ireland news ESRI report finds cooperation in collective climate action key The ESRI has published a research bulletin, How to Encourage Collective Climate Action, including a review of 272 studies on how people behave in collective action problems specifically concerned with climate change. Some of these challenges are ‘multi-level coordination’ (i.e. that local action is needed to achieve national or international goals), uncertainty about which actions will be effective, the fact that consequences of today’s decisions will be most strongly felt by future generations, and the need to overcome psychological biases (e.g., status quo bias – a preference for things to stay as they are, even if the alternative is better).  The bulletin recommends showcasing success stories to inspire action, and using multiple, smaller-scale initiatives instead of one large strategy to help foster cooperation by aligning goals with local identities and benefits. Ireland joins international partnership aimed at promoting sustainable ICT procurement practices Ireland has entered into a voluntary agreement to co-operate with other bodies, internationally, to improve the sustainability of ICT procurement. The initiative – the Circular and Fair ICT Pact (CFIT) – is an international procurement-led partnership with a remit to accelerate circularity, fairness, and sustainability in the ICT sector. Joining the CFIT Pact fulfils a commitment in Buying Greener: Green Public Procurement Strategy and Action Plan 2024-2027, which aims drive the implementation of green and circular procurement practices across the public sector. Ireland shows no improvement in recycling rates in 10 years The Environmental Protection Agency (EPA) has published the Circular Economy and Waste Statistics Highlights Report 2022, which states that Ireland generated 15.7 million tonnes of waste in 2022. Although a decrease on 2021 figures, this still shows a growth of over 20% in the last decade, with construction activities accounting for half of all waste generated. Ireland is now almost certain to miss EU municipal and packaging recycling targets for 2025. Europe news The EU-Mercosur trade The EU-Mercosur trade deal has been signed by the EU and four Mercosur countries — Argentina, Brazil, Paraguay and Uruguay – following 25 years of negotiations. While the annex to the trade and sustainable development chapter of the deal commits parties to “prevent further deforestation and enhance efforts to stabilise or increase forest cover from 2030”, trade experts and environmental experts disagree, citing deforestation risks, among other negative impacts. Cap adopted for 2027 Emissions Trading System for buildings, road transport and small industry (ETS2) The EU Commission has adopted a decision establishing the EU-wide quantity of allowances issued under Emissions Trading System for buildings, road transport and small industries (ETS2) in 2027. The ETS2 is a new emissions trading system created as part of the 2023 revisions of the ETS Directive. It is separate from the existing EU ETS and will cover and address the CO2 emissions from fuel combustion in buildings, roadtransport and additional sectors (mainly small industries not covered by the existing EU ETS). This cap will amount to 1,036,288,784 allowances for 2027 and aims to contribute to the EU achieving its 2030 climate targets. Sustainability reporting for SMEs - update The European Financial Reporting Advisory Group (EFRAG) has delivered the Voluntary Sustainability Reporting Standard for non-listed SMEs (VSME) to the European Commission. Based on market acceptance, the VSME has been designed to provide a standardised set of information in order to support ESG reporting for SMEs and boost access to finance. In 2025 EFRAG will issue support guides and educational material, among other initiatives. Accountancy Europe’s Sustainability update – December Covered in the recently published Accountancy Europe’s December Sustainability update are the EU Taxonomy FAQs on the usability of the  EU sustainable finance frameworks; updates on the Green Claims Directive; approval of ESG rating activities regulation; updates on the Deforestation Regulation, and ESMA’s proposal to phase in ESRS digital tagging requirements. World news The International Federation of Accountants (IFAC) and We Mean Business Coalition (WMBC), in partnership with the Global Accounting Alliance (GAA) have published Building Trust in Sustainability Reporting and Preparing for Assurance: Governance and Controls for Sustainability Information. The guide aims to provide a roadmap for organising and enhancing governance and control systems, and outlines steps to align sustainability and financial reporting in terms of quality, timing, and connectivity, and addresses challenges in sustainability reporting. The new guidance can be applied to the adoption of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB) and jurisdictional requirements, including the European Sustainability Reporting Standards (ESRS). Articles In this blog post, Fergus Sharkey, Head of Business at the Sustainable Energy Authority of Ireland (SEAI), discusses the new suite of business energy grants available to SMEs to reduce costs, cut carbon emissions, and remain competitive (SEAI) Goldman Sachs’ Exit from the Climate Alliance: What’s Behind the Move? (Climate Action for Associations) Biodiversity hit to economies estimated at up to $25tn a year in landmark report (Financial Times) Paris to Replace Parking Spaces With Trees (Bloomberg) Podcast The financial case for sustainability: In this episode of Behind the Numbers from ICEAW, Philippa Lamb is joined by Richard Spencer, ICAEW Director of Sustainability and others  to discuss the challenge for accountants in ensuring that the quality of non-financial information matches that of financial information. New resource – The Business Case for Nature A4S (Accounting for Sustainability) has published The Business Case for Nature,  a guide explaining why nature is vital to business and offering clear steps and practical tips for developing the business case for organisations. The guide is part of the ‘A4S’s nature guidance series’, currently being created to give finance teams the practical guidance and tools to understand their nature-related impacts and dependencies, and to take steps to integrate nature-related risks and opportunities into business strategy and decision-making processes. Sustainability Centre Our Sustainability Centre has been updated to include links to sustainability webinars run by Chartered Accountants Ireland on the topic of sustainability.

The Financial Reporting Council (FRC) has published FRED 86 “Draft amendments to FRS 101 Reduced Disclosure Framework”, which has proposed some amendments to the FRS 101 standard. FRS 101 Reduced Disclosure Framework sets out an optional reduced disclosure framework that is available for the individual financial statements of subsidiaries and ultimate parents that otherwise apply the recognition, measurement and disclosure requirements of adopted IFRS. The standard is intended to enable cost effective financial reporting within groups to reduce reporting burdens, particularly for those applying IFRS Accounting Standards in their consolidated financial statements. Each year, the FRC carry out a review of the standard to decide whether FRS 101 should provide exemptions from new disclosure requirements or whether other consequential amendments are required. In FRED 86, the FRC have proposed some amendments to the standard, including; Amendments to exempt most qualifying entities from the disclosure requirements in IFRS 18 related to management-defined performance measures Amendments to exempt qualifying entities from the disclosure of a disaggregation of specified expenses classified by nature (as set out in paragraph 83(b) of IFRS 18), and An amendment to prevent entities from applying both FRS 101 and IFRS 19 The proposed amendments will now be subject to a consultation period, with comments welcomed by the FRC until 7 March 2025.

In Irish news, we bring you Revenue’s opening arrangements for the holiday period, and Revenue has published new guidance on leasing arrangements where the lessee can claim capital allowances on plant and machinery. In UK news, HMRC has advised of a delay in processing postal applications to register for an agent services account and we signpost readers to a new joint report on HMRC services which the Institute contributed a quote to. In International news, the Council has agreed on the directive proposal to introduce an electronic VAT exemption certificate.  Ireland See Revenue’s opening arrangements for the holiday period. Revenue has published new guidance on scenarios where lessees may claim capital allowances. UK HMRC has advised of a delay in processing postal applications to register for an agent services account. Read about the new joint report launched on HMRC services. International The Council has agreed on the directive proposal to introduce an electronic VAT exemption certificate. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner here.          

Chartered Accountants Ireland North West Society raised an impressive €4,750 for Mary’s Meals at their annual Christmas lunch, held on Friday, 13th December, at the Glasshouse Hotel, Sligo. This generous donation will provide food for 251 children for a full year, demonstrating the extraordinary goodwill of the regional members and guests. The lunch brought together over 100 members and guests from the Society, which represents more than 850 chartered accountants across Sligo, Leitrim, Donegal, Roscommon, and Mayo. The event was generously supported by Finbarr Filan, Centra, Sligo and Vice Chair of the Irish Small and Medium Enterprise Association. Dolores Kiernan, Managing Director of Kiernan Steel—an award-winning multinational SME—was the special guest. She shared her inspiring journey of building her company out of economic necessity to support her family and growing it into a thriving global business. In his address, Finbarr Filan, Vice Chair of ISME, emphasised the critical role of the Accounting profession in helping business owners navigate an ever-changing operating environment. He highlighted the importance of Accountants ensuring clients are fully informed of developments, including policy and tax changes, to safeguard business success. Joan Curry, Vice President of Chartered Accountants Ireland, extended a warm welcome to members, both longstanding and new. She praised the North West Society for its vibrant community, exceptional engagement, and diverse events. She noted the presence of notable members, such as former National President Joe Gannon and Chartered Accountants Ireland Student Society Chair Caelainn McGonigle, as evidence of the Society’s strength and vitality. Chartered Accountants Ireland North West Society continues to foster a strong, supportive network for professionals across the region, organising events that inspire, educate, and bring the community together.

The European Commission has adopted an amendment of the 'de minimis' Regulation for the agricultural sector which exempts small amounts of support in the agricultural sector from State aid control. The revised Regulation includes an increase in the maximum de minimis ceiling and will apply until 31 December 2032.

The OECD has published a report which provides insights on public perceptions on tax, and public trust in tax systems from twenty-six countries, primarily in Latin America, but also from Africa and Asia.

The OECD has published a report on revenue statistics in Africa 2024. This annual publication compiles comparable tax revenue and non-tax revenue statistics for 36 African countries. This edition includes a special feature on facilitation and trust as drivers of voluntary tax compliance.

The European Council has agreed on the new directive proposal from the EU Commission to introduce an electronic tax certificate for VAT exemptions. 

Read our update on publications in this area since October 2023. Belarus: tax treaties, New Zealand: tax treaties, 2023 UK-New Zealand Memorandum of Arrangement — in force, Luxembourg: tax treaties, International Tax: UK Real Estate Investment Trusts (REIT) property income dividends — UK-Japan Double Taxation Convention, San Marino: tax treaties, Norway: tax treaties, Peru: tax treaties, Liechtenstein: tax treaties, and Romania: tax treaties.

The latest tidbits features updated guidance across a wide range of areas. Capital Gains Tax relief on gifts and similar transactions (Self Assessment helpsheet HS295), Tell HMRC that Inheritance Tax is due on a gift or trust (IHT100), Avoid and report internet scams and phishing, Check genuine HMRC contact that uses more than one communication method, Claim the residence nil rate band, HMRC email updates, videos and webinars for Self Assessment, Complain about HMRC, Tell HMRC your employment related securities scheme has ended, Submit your employment related securities return, Late registrations for employment related securities, Register your employment related securities scheme, Submit an Enterprise Management Incentives notification, How employment related securities work if you're an employer, Set up as a sole trader: step by step, Corporation Tax: penalty determinations (CT211 Notes), Tax when you get a pension, Apply for a certificate to confirm you will pay UK National Insurance while self-employed abroad temporarily (CA3837), Tax-Free Childcare, How Inheritance Tax works: thresholds, rules and allowances, Economic Crime Supervision Handbook, Pay voluntary Class 3 National Insurance, Redundancy: your rights, Tax on your private pension contributions, National Insurance rates and categories, Tax if you come to the UK, Tax on termination payments, Company Tax Returns, Check you're eligible for free childcare if you're working, Applying for probate, Business Leasing Manual, Collection of Student Loans Manual, and Tell HMRC that Inheritance Tax is due on the 10 year anniversary of a trust (IHT100d).

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Miscellaneous guidance updates and publications Regulated aerodrome location codes for Data Element 5/23 of the Customs Declaration Service, Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service, and Lit of customs training providers.