In this week’s Sustainability/ESG Bulletin read about the Hamburg Declaration to bolster energy security across Europe, Northern Ireland’s first annual progress report on its Environmental Improvement Plan and a report arguing that natural capital should be formally recognized as Critical National Infrastructure (CNI) in the UK. Also covered is how renewables generated more power than fossil fuels in Europe in 2025, how corporate climate action momentum remains high globally, the ECB’s research into climate and nature risks, an OECD analysis of climate change mitigation policies, the new IPSAS standard for governments to account for tangible natural resources, and the latest articles, resources and upcoming events. IRELAND The Hamburg Declaration Ireland has signed a historic clean energy security pact – the ‘Hamburg Declaration of Energy Ministers’ – that aims to bolster energy security across Europe and the UK in an era of global instability. The deal – agreed at the Future of the North Seas Summit – sets out a commitment to a more regional approach to cross-border infrastructure planning, closer cooperation on the protection of offshore energy infrastructure, and the development of an Offshore Financing Framework to strengthen the business case for offshore wind in the North Seas. In the second half of this year, Ireland's EU Presidency will emphasise the need for accelerated deployment of renewable energy, particularly wind, solar and emerging offshore technologies, to deliver clean and affordable power for citizens and businesses. Increased renewable availability reduces exposure to volatile fossil fuel markets and strengthens Europe’s strategic autonomy. Parliamentary Budget Office publishes paper on Global Carbon Taxes 2025 The Parliamentary Budget Office (PBO) has published a new paper Global Carbon Taxes in 2025. Carbon pricing - through carbon taxes or emissions trading schemes (ETS) - is widely recognised as an effective tool for reducing emissions. The paper explains these two pricing mechanisms, outlines key design differences, and examines how they interact. The supporting note, Identifying Greenhouse Gas Emissions, aims to help readers understand emissions measurement methodologies and the challenges they present for carbon pricing policy. Calls for clear, consistent, and practical sustainable finance rules The Banking and Payments Federation Ireland (BPFI) is calling for clear, consistent, and practical sustainable finance rules to enable banks to channel capital effectively and efficiently into green investments without excessive burdens or ambiguities; this, it says, requires greater harmonisation of sustainability rules across the various pieces of EU legislation. Other recommendations it makes for Ireland’s EU Presidency 2026 are in the areas of retail participation in capital markets while safeguarding investor protection, creating a more proportionate & simplified regulatory framework, creating a fair, open and innovative digital infrastructure and ensuring the effective delivery of housing. €500m climate transition equity fund launched Aon plc, a global professional services firm, has announced the launch of a new climate transition fund in Ireland, with Irish-based, global asset management company Irish Life Investment Managers Limited (‘ILIM’). The €500m Climate Transition Equity Fund aims to enable investors in Ireland to support the transition to a low-carbon economy. The fund will tilt towards companies that are working to achieve the UN Sustainable Development Goals relating to climate action, resource scarcity, healthy ecosystems and basic social needs. NORTHERN IRELAND/UK Northern Ireland’s first annual progress report on Environmental Improvement Plan The Department of Agriculture, Environment and Rural Affairs (DAERA) has published Northern Ireland’s first Annual Progress Report on the Environmental Improvement Plan. The report provides the first assessment of what has been achieved by the Department and across government since Northern Ireland’s first Environmental Improvement Plan (EIP) was launched in September 2024. The report demonstrates progress across all six SEOs, while acknowledging the scale of the challenge and the need for accelerated action to meet a number of commitments, including a continued reduction in greenhouse gas emissions, with 2023 emissions falling by 7.1% compared with 2022, bringing overall emissions to 31.5% below 1990 levels. Global ecosystem degradation and collapse threaten UK national security and prosperity A policy paper from the Institute for Sustainability and Environmental Professionals (ISEP) has called for the protection, enhancement, and restoration of natural capital to be placed at the heart of the UK’s economic growth and national resilience strategy. The report, Natural Capital is Critical Infrastructure highlights that the UK’s economic success is fundamentally dependent on natural capital - the stocks of nature such as forests, rivers, biodiversity, land, and minerals - which provide essential ecosystem services vital for human well-being and economic stability, and argues that natural capital should be formally recognized as Critical National Infrastructure (CNI). More recently, the UK government’s Department for Environment, Food & Rural Affairs published an assessment of how global biodiversity loss and ecosystem collapse could affect UK national security. With high analytical certainty, it states that global ecosystem degradation and collapse threaten UK national security and prosperity, with cascading risks likely to include geopolitical instability, economic insecurity, conflict, migration and increased inter-state competition for resources.  The assessment, which aims to support long-term resilience planning, highlights opportunities for innovation, green finance and global partnerships that can drive growth while safeguarding the ecosystems that underpin our collective security and prosperity. EUROPE Report identifies ‘new milestone’ for EU’s electricity transition European Electricity Review 2026, the report from the independent, UK-based non-profit energy think tank Ember, has found that the EU’s electricity transition reached a new milestone in 2025 with wind and solar generating more power than fossil fuels. Renewables provided nearly half of EU power, gas generation rose by 8 percent compared to 2024, which pushed the EU power sector’s gas import bill up to €32 billion, and coal power fell to a new historic low of 9.2 percent. Battery deployment accelerated significantly in 2025, with grid-scale projects announced across the EU. The report called for member states and governing institutions to prioritise implementing rules for clean flexibility, boosting electrification through clear policy signals and support, and improving energy security. Overheated and underprepared: Europeans' experience of living with climate change A new joint report by the European Environment Agency (EEA) and Eurofound on implemented climate resilience measures – both at the household and local authority level has found that while most Europeans have already been directly affected by extreme weather and are highly concerned about future climate impacts, yet their preparedness remains limited. The report, which draws on data collected from over 27,000 respondents across EU-27 countries, will be launched on 4 February at a webinar: 'Overheated and underprepared: Europeans' experience of living with climate change'. Accountancy Europe Sustainability Update Accountancy Europe has published its January Sustainability Update with the following highlights: Commission announces members for the Platform on Sustainable Finance EU Deforestation Regulation postponed by one year ESMA outlines principles to follow to address greenwashing risks EFRAG shares first insights into VSME market acceptance (Also, see this Op-ed by Iryna de Smedt, Policy Manager Accountancy Europe: Omnibus won’t stop the climate clock: only sustainable businesses will compete tomorrow) WORLD CDP and SBTi 2025 figures show corporate climate action momentum building CDP – the environmental disclosure platform – has revealed its 2025 ‘A List’, the top performers among the companies disclosing sustainability information on the platform in 2025. Over 800 companies achieved the recognition this year, following a 70 percent year-on-year rise in companies achieving it across climate, forests and water security. According to the CDP’s press release, “the sustained global demand for high-quality environmental data from companies, cities, states and regions”, with markets continuing to signal the critical importance of reliable environmental information. 640 investors with US$127 trillion in assets called on companies to disclose through CDP while over 270 major buyers requested environmental data from approximately 45,000 suppliers via CDP’s Supply Chain program. Separately, the number of companies with science-based targets validated by the Science-Based Targets initiative (SBTi) globally has reached 10,000 worldwide, reflecting the growing scale of corporate climate action across sectors and regions. Headquartered across all continents and in more than 90 countries, the 10,000 companies represent more than 40 percent of global market capitalization and include many of the world’s leading businesses, spanning nearly every major sector, region, and company size. To be validated by SBTi Services—the SBTi’s validation arm—a company must set targets using the criteria laid out in the SBTi’s standards, tools, and guidance. Validation by SBTi Services confirms that a company’s targets are ambitious and aligned with SBTi-approved pathways to achieve net zero by 2050. ECB findings on higher borrowing costs for banks with higher exposure to transition risks and climate and nature plan 2024-2025 The European Central Bank (ECB) has published a paper which finds that banks with higher exposure to transition risk face significantly higher borrowing costs. The paper, Climate change, bank liquidity and systemic risk, examined the relevance of banks’ exposure to climate transition risk in the interbank lending market and identified this “transition premium” as “a combination of a risk premium, compensating lenders for increased credit risk, and an inconvenience premium”, reflecting the sustainability preferences of key dealer banks. It also found that the transition risk premium intensifies during periods of financial stress, indicating that climate-induced risks amplify existing vulnerabilities in financial markets. UN High Seas Treaty and AI for seafood supply chain companies Companies in seafood supply chains must now integrate treaty compliance and AI-enhanced traceability into sourcing strategies, after the United Nations High Seas Treaty became legally binding January 17. This landmark treaty aims to – among other things – strengthen the transparency and enforcement of marine biodiversity governance. The effectiveness of the measures will depend on the implementation of the Treaty, as enforcement gaps and inequalities in technology access could limit environmental outcomes. Analysing the international spillovers of climate change mitigation policies A new paper from the Organisation for Economic Co-operation and Development (OECD) has analysed ‘international spillovers’ from domestic climate mitigation policies - specifically economic, technology, and policy spillovers - and their impacts on global emissions and economic outcomes. These effects can be positive - such as accelerating low-carbon technology diffusion or the implementation of mitigation policy adoption abroad - or negative - such as shifting emissions across countries, i.e., carbon leakage, and fragmenting international markets. Advancing a shared understanding of international spillovers is essential to the Inclusive Forum on Carbon Mitigation Approaches (IFCMA)’s objective of enhancing the global effectiveness of mitigation efforts. To this end, the report provides a typology of spillover effects and transmission channels, reviews tools available to analyse them, synthesises the existing evidence, and explores policy design and responses to manage spillovers. This framework forms the analytical foundation for the upcoming IFCMA work to deepen the evidence base and support more co-ordinated international climate action. New IPSAS Standard Helps Governments Account for Tangible Natural Resources Held for Conservation The International Public Sector Accounting Standards Board (IPSASB) has issued a new standard to address the need for guidance on tangible natural resources held for conservation. IPSAS 51, Tangible Natural Resources Held for Conservation introduces new, public sector-specific accounting guidance on accounting for natural resources with physical substance, such as land, trees, and water, often held by governments to preserve or protect them. IPSAS 51 also highlights guidance in other standards that applies to natural resources that are held for other purposes. IN CASE YOU MISSED IT… Davos 2026: Special address by Mark Carney, Prime Minister of Canada (World Economic Forum) (Video: 33mins) TECHNICAL ROUNDUP (From our colleagues in Professional Accounting on 23 January) The European Securities and Markets Authority (ESMA) has published a second thematic note on sustainability-related claims focusing on ESG strategies. This publication offers practical guidance for making sustainability claims ensuring clear, fair and not misleading sustainability-related claims are made by market participants and also addressing greenwashing risks in support of sustainable investments.   The European Central Bank (ECB) announced that it has advanced its climate and nature work based on the 2024-2025 plan embedding climate and nature-related risks into its core work.  RESOURCES Recording & slides - webinar on latest Environmental, Social & Governance (ESG) landscape On 14 January 2026, the Ulster Society hosted a webinar on the latest Environmental, Social & Governance (ESG) landscape, and the challenges and opportunities this brings for chartered accountants in business. Speakers from NIE Networks Ltd, Encirc, Graham Group and Firmus Energy discussed the growing responsibilities of finance professionals, the skills required to navigate ESG effectively, and how chartered accountants can add value in an increasingly sustainability-focused business environment. A recording of this webinar is available to view, for free and on demand, HERE Global natural capital accounting standard: Why it matters for finance professionals In this article from ICEAW find out about ISO 14054, the first global standard for natural capital accounting, which recognises the role that nature plays in sustaining business value. Digital and emerging technologies and human rights This new content from the United Nations Global Compact explains how digital and emerging technologies create both opportunities and significant human rights risks. It provides definitions, examples, and human‑rights considerations relevant for companies. Science-based targets e-learning collection The United Nations Global Compact is offering five new and enhanced e-learning modules developed by the Science Based Targets initiative (SBTi)—guiding companies through every step of target setting and preparing for validation. Each course features interactive content, real-world examples and knowledge checks to help companies build credible decarbonization strategies in their journey to science-based targets. Guide: Procurement: A Catalyst for Sustainable Growth and Resilience With 40 practical tools and frameworks, plus global case studies and company insights, this publication from the United Nations Global Compact equips organizations to embed sustainability across the procurement lifecycle. It highlights how collaboration between buyers and suppliers, including SMEs, is central to success, and it explores the shifting landscape of regulatory demands, business risks, and market opportunities, positioning procurement as a strategic lever for advancing ESG priorities and sustainable growth. ARTICLES Small businesses’ big impact on sustainability reporting (Accountancy Ireland) Preparing for the new rules in pay transparency (Accountancy Ireland) Climate action plan delayed for second year despite emissions cuts falling behind target (Irish Times) New Research Warns Physical Climate Risk Can Drive Default (David Carlin’s Digest: Your Guide to a Changing World) Financial institutions are underestimating climate risks, actuaries warn (Sustainable Views FT – subscription needed) Smart boards incorporate climate and nature into their core strategy(Sustainable Views FT – subscription needed) Modern slavery is increasing, so too are its regulatory and reputational risks (Sustainable Views FT – subscription needed) How AI is helping to bring nature into the boardroom (Reuters) How will the new duty on electric cars work? (ICAEW Insights)   EVENTS UN Global Compact Network UK Webinar Series, The Business Role in Systems Change, Feb/Mar 2026 Businesses are facing escalating risks as the world approaches critical tipping points. Corporate resilience now depends on the transformation of markets, supply chains, and business models needed to steer the system towards stability. There is also potential for positive tipping points - moments when small, well-directed actions accelerate large-scale transitions towards sustainability. Businesses hold a unique capacity to create and amplify these dynamics of change. In these webinars, leading scholars and experts will discuss tipping points, climate risk, and systems change, how to respond to emerging climate realities and apply breakthrough frameworks such as the Positive Tipping Points Toolkit and Doughnut Economics to unlock change at multiple scales.   Webinar sessions: Understanding Tipping Points Risks, Feb 26  | 14:00 Systems Thinking in Business and Climate, Mar 5  | 14:00 Triggering Positive Tipping Points, Mar 12 | 14:00 Dublin Chamber, The Sustainability Academy: Green Public Procurement Training Join us on Wednesday the 4th of February for Half-day virtual workshop on Green Public Procurement as part of Sustainable Academy, sponsored by AIB. All companies now need to learn the green public procurement rules to bid and win new contracts with the public sector. Virtual, Wednesday 4 Feb 2026 | 9am - 12.30pm. Pentland Centre for Sustainability in Business - Lancaster University, Starting Your Journey with Tools and Frameworks Second in the series, this webinar explores tools and frameworks that support decision-making for nature and biodiversity, including the Natural Capital Protocol and TNFD. Learn how these approaches help businesses identify relevant priorities and communicate outcomes effectively. Virtual, Thursday 12 February, 8:00am – 9: 00am | 4.00pm – 5.00pm ICAEW, Putting nature on the balance sheet — Troubleshooting session Troubleshooting session to tackle common challenges on how to embed nature into the activities and processes of the finance function. Virtual, Wednesday, 18 February, 4 - 5pm CET Reuters Events, Practical Implications of the Omnibus A webinar hosted by Reuters Events in partnership with Professor Andreas Rasche, Associate Dean, Copenhagen Business School. The session will explore the practical implications of the EU Omnibus package and what these changes mean for organisations preparing their 2026 sustainability reporting strategy. Virtual | Thursday, 19 February 2026 | 10:00 am–11:00 am GMT / 11:00 am–12:00 pm CET Shift, EU Omnibus Webinar - Briefing for business on the revised CSDDD and performing due diligence This webinar will feature insights from the Shift team and leading businesses on practical, real‑world approaches to implementing due diligence aligned with good practice. The session will explore how due diligence requirements under the CSDDD and reporting obligations under the CSRD can be addressed in an integrated way, rather than treated as separate exercises. Companies in scope of the CSDDD or operating within their value chains are encouraged to attend. Virtual, Thursday, 26 February 2026 | 09:00 Shift, EU Omnibus Webinar - Briefing for business on the revised CSRD and reporting on sustainability issues The session will examine what recent changes to the CSRD and the ESRS mean in practice for how companies report on sustainability issues.  The webinar will feature insights from the Shift team, alongside leading businesses, on implementation approaches that reflect good practice, support companies in identifying and addressing key risks, and remain practical and workable in real-world contexts. The discussion will also explore how reporting obligations under the CSRD and due diligence requirements under the CSDDD should be considered together, rather than in isolation.  If your company is in scope of the CSRD, or part of the value chain of a company that is, we encourage you to join us. Virtual, 3 March 2026 | 15:00 Pentland Centre for Sustainability in Business - Lancaster University, What Does ‘Good’ Look Like in Corporate Reporting? The final session in the Pentland Centre’s free webinar series for SMEs explores what effective reporting on nature and biodiversity looks like. Drawing on global examples, this webinar highlights best practices and practical approaches for integrating nature and biodiversity into corporate reporting. Virtual, Thursday 12 March 2026, 8:00am – 9:00am | 4.00pm – 5.00pm   Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.

From the Professional Accounting Team In October 2025, the eagerly awaited 2026 version of the Charity Statement of Recommended Practice (2026 SORP) was published. This update follows the publication of the September 2024 version of FRS 102 and a SORP consultation in mid-2025, which attracted over 100 responses. The 2026 SORP contains some significant changes to how charities will report on their activities compared to the requirements of the 2019 SORP. This article looks at some of the key changes that charities who apply the SORP will need to be aware of as they begin their journey of reporting under the new SORP. Why was the SORP updated? As the SORP provides guidance on how charities can apply FRS 102, the SORP-making body must always ensure that it remains consistent with FRS 102. As a result, an amendment made to FRS 102 will prompt the need for similar amendments to be made to the SORP. Following the publication of the September 2024 edition of FRS 102, the SORP making body has set about updating the SORP to incorporate the various changes contained in the new edition of FRS 102. The Charity SORP 2026 represents the most significant overhaul of financial reporting for charities in Ireland and the UK for many years (and certainly the most significant change since the introduction of FRS 102). It will reshape how charities explain their activities, report on their impacts, recognise income, and account for leases. Changes made to the Charity SORP 2026 A New Tiered Reporting Structure The previous edition of the Charity SORP included the concept of a “larger charity” (charities with gross income exceeding £/€500,000). For those charities classed as “larger”, there were additional mandatory disclosure requirements compared to their “smaller charity” counterparts, particularly in relation to the disclosures in their Trustees Annual Report. Charity SORP 2026 builds on this concept and introduces a three-tier system, designed to further scale disclosure requirements according to charity size. Depending on the tier in which they fall, charities will have increased or decreased reporting requirements across five specific modules. The new tiers are as follows: Tier 1: Gross income up to £/€500,000 Tier 2: Gross income more than £/€500,000 but less than £/€15 million Tier 3: Gross income of more than £/€15 million This new system will result in some charities requiring more details in their Trustee’s Annual Report. These requirements are intended to be proportionate to the size of the charity. A Refocused Trustee’s Annual Report One of the most visible differences between a set of financial statements which have prepared solely under FRS 102 compared to the Charity SORP is the presence of a Trustee’s Annual Report in the SORP. The Trustee’s Annual Report is a key component of a charity’s Annual Report and aims to provide a narrative account of what has happened in the charity during the year. In the 2026 SORP, The Module dealing with the Trustee’s Annual Report (Module 1) has been rewritten to improve clarity, narrative quality, and alignment with financial information. One of the key goals of the SORP-making body in doing this is to help charity trustees to understand the narrative reporting requirements placed on them and to encourage trustees to link the narrative information to the financial details in the accounts. The emphasis of the Trustee’s Annual Report is firmly on impact reporting — communicating not just what a charity does, but also the difference it makes. Some specific changes relating to the Trustee’s Annual Report contained in the updated SORP include. Prompt questions to encourage charities to explain the impact that they are making. Within Module 1, there are now some “prompt questions” which should help charities to tell their story in a meaningful way. The purpose of this is to ensure that the charity does not see the module as simply a compliance checklist but rather a means by which they can explain the difference they are making in a way that is unique to their specific charity. The questions focus on areas such as, objectives, activities undertaken, strategy, measurement of success and wider societal benefits. Sustainability Reporting. In recognition of the fact that stakeholders are increasingly interested in how charities are responding to environmental, social and governance issues, the 2026 SORP introduces some mandatory and encouraged disclosures which address how the charity is responding to, and managing, these issues. Only charities in tier 3 (i.e. gross income exceeding €/£15 million) are required to explain this, with charities in tiers 1 and 2 having the option to do so. Legacy income. Where a charity is in receipt of legacy income and this income has been recognised in the accounts prior to the resources being received, the impact of this must be disclosed. Disclosure of auditors and exemption from disclosing certain information. Under the 2026 SORP there is now a specific requirement to provide the name of the charity’s auditors, if applicable. Furthermore, where certain disclosure exemptions are availed of (such as omitting the names of the CEO, senior staff members etc) due to a risk to their personal safety, there is no longer a requirement to explain why such information has been omitted from the Trustee’s Annual Report. Where a charity is availing of this option, they should be aware of the relevant local legislative requirements and should consult their regulator where necessary prior to availing of this exemption. Reserves and Going Concern Modules 1 and 3 include some changes in relation to reserves and going concern. The 2026 SORP introduces further clarity regarding the treatment of reserves. First, there is now a specific definition of reserves included in the glossary. Consideration of reserves is also better incorporated into going concern assessments and where a charity has no (or negative) reserves, there is now a requirement to explain why it is still operating as a going concern. Furthermore, there is now a recommendation for charities to consider their reserves and going concern assessment when explaining their plans for the future. In order to align with the FRS 102 Periodic Review amendments, there are some amendments to going concern disclosures, including a requirement to disclose significant going concern judgements as well as confirmation that the charity has considered at least 12 months of information in making its going concern assessment. Some going concern disclosures which were a “should” disclosure under the 2019 SORP are now a “must” disclosure. Revenue Recognition In order to align the SORP with the updates to FRS 102, Module 5 (“Recognition of income including contract income and income from legacies and grants”) has been updated and restructured. The updated Module provides clarity on how to account for the various income streams from which charities benefit. Module 5 has been split into 2 sections. Section 1: Exchange transactions Section 2: Non-exchange transactions Most charities will be in receipt of income from either (or both) types of transactions, and it is important to identify these appropriately, as the resulting accounting treatment is fundamentally different for each income stream. Exchange transactions For exchange transactions, charities will be required to apply the five-step model of revenue recognition whereby the transactions will go through the new model which has been derived from IFRS 15 Revenue from Contracts with Customers. The SORP includes guidance at each step of the process to help charities in applying the requirements. The five-steps of revenue recognition are: Step 1- identify the presence of a contract with a third party Step 2- identify the performance obligations in the contract Step 3- determine the transaction price Step 4- allocate the transaction price to the performance obligations in the contract Step 5- recognise income when or as a charity satisfies a performance obligation Charities who receive income from exchange transactions will need to bring these sources of income on the 5-step “journey” to determine the appropriate accounting treatment. In many cases, this will be a very straightforward exercise, with a clear path through each step. In some cases, charities will require a deeper consideration of each step. This might include, for example; A charity considering how many performance obligations exist in a contract with a customer and whether the series of goods/services are distinct. Consider a charity providing residential care services to individuals. If the contract with the customer includes additional goods and services beyond residential care services (such as meals, classes, medical sessions etc) then charities will need to consider the number of performance obligations in the contract and how these should be treated under step 2 of the model. Where a charity determines that it has multiple performance obligations in a contract, it must then allocate the transaction price to the performance obligations in the contract. This might involve estimation techniques if there are no observable standalone prices for that performance obligation. A charity will need to consider whether it satisfies its performance obligations over time or at a point in time as this will impact on the timing of revenue recognition. Non-exchange transactions For non-exchange transactions, charities are not required to apply the five-step model and instead must recognise income based on when performance-related conditions are met. Under the SORP, Non-exchange transactions that don’t impose future performance-related conditions on the recipient are recognised in income when the resources are received or receivable Non-exchange transactions that impose future performance-related conditions on the recipient are recognised in income only when the performance-related conditions are satisfied When resources are received or receivable before the performance-related conditions are satisfied, a liability is recognised While it is written more generally for an FRS 102 audience, and not specifically for charities, the FRC’s Factsheet 10 – Revenue from Contracts with Customers is a useful source of further reading on revenue recognition and the five-step model. Leasing Another significant change in the Periodic Review of FRS 102, which now makes its way into the Charity SORP, is in relation to lease accounting, and specifically lessee accounting. The updated SORP removes the operating vs finance lease distinction for lessee accounting and instead requires that most leases (with some exemptions) will be required to be recognised as a right-of-use asset on the balance sheet, with a related liability also recognised for future lease payments. A new Module 10B has been added to the SORP to address this. While much of the theory in relation to the new lease accounting rules is addressed in FRS 102, the SORP provides guidance and commentary on what this might mean for charities and deals with some circumstances that might be more prevalent in charities. Some specific circumstances addressed in the SORP include: Peppercorn leases whereby a charity has leased an asset for nil or for a nominal amount Social donation leases where the lease payments are below market rent Rolling leases with no specified end date The appropriate interest rate that a charity should use to determine the present value of lease payments Special conditions imposed on a lease because the tenant is a charity The new module 10B includes a useful flow chart which should help users to navigate the rules and signpost readers to where they can find further information. Not all assets leased by charities will be required to be recognised as right-of use assets and there are two prominent exemptions which (if applicable to the charity) will allow the charity to expense the lease in the year it is incurred. The two exemptions are; Low value leases. While not providing monetary guidance on what constitutes a “low-value” lease, the SORP sets out some asset types which would not typically be expected to be “low-value”. Furthermore, the SORP also highlights some assets which might be expected to be classed as "low-value”. Short-term leases. Leases which have a term of 12 months or less at the commencement date may avail of the option to not recognise a right-of-use asset in relation to the lease and instead can expense the lease payments on a straight-line basis over the lease term. A lease containing a purchase option cannot be treated as a short-term lease. Charities applying the SORP who lease assets will need to familiarise themselves with the new requirements and how they might impact on their assets, liabilities and profitability. Some challenges which may be encountered include: Information gathering- can the charity locate all of its leases? Determining the lease term- is there a legally enforceable lease in place? Has the charity a lease in place which has simply “rolled forward”. Leases where the charity is not paying full market value- How should a charity account for the “donation” element of this? Systems for recording leases- Does the charity have a system in place which can capture and record the relevant information for lease accounting or is a new system required? How to present value the lease liability at the beginning of the lease term. The FRC’s Factsheet 11 – Lease accounting for lessees is a useful source of further reading on the new lease accounting rules in FRS 102. Statement of Cash Flows Under the previous version of the SORP, a charity was required to prepare a statement of cash flows when it had income in excess of £/€500,000. The 2026 SORP increases this threshold to £/€15 million (ie. a Tier 3 charity). This change means that only the very largest charities will be required by the SORP to prepare a cash flow statement, and this change is broadly consistent with the requirements placed on companies of a similar size under FRS 102. In making the change the SORP making body noted that the change will have a positive impact on charities as it will reduce the reporting requirements for smaller charities. However, it is important to note that the increased threshold does not override any existing requirement that a charity might have to prepare a statement of cash flows. So, for example, a charity who operates as a company may have income below £/€15 million but may still be required by company law to prepare a statement of cash flows because it does not meet the definition of a small entity. The exemption is also voluntary and a charity who is in tier 1 or 2 may choose not to avail of this and prepare a statement of cash flows. Get ready for implementation The 2026 Charity SORP is effective for reporting periods beginning on or after 1 January 2026, leaving charities with limited time to prepare. Charities who apply the SORP should act now to familiarise themselves with the new requirements, assess the impact on their reporting processes, and plan any updates needed for a smooth transition. By acting early, charities can ensure they are ready to implement the revised SORP and meet their reporting obligations.   This information is provided for information only and nothing in this article purports to provide professional advice or definitive legal/technical 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 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 Irish news, today brings the deadline for several engagement and disclosure opportunities for businesses and Revenue has issued a press release following Storm Chandra. In UK news today, the Institute has presented the case for a lower corporation tax rate for Northern Ireland to two Northern Ireland Assembly committees, and it’s now just five days until the 2024/25 self-assessment online filing deadline. In International news, the OECD has published updated transfer pricing country profiles. Ireland 1. Read about the various submissions due today including the disclosure opportunity for businesses to regularise payroll obligations for 2024 and 2025 following the Karshan case, the joint public consultation on electronic withholding tax (eWHT) and the VAT modernisation survey. 2. Revenue has issued a press release offering guidance for those affected by Storm Chandra on meeting their tax compliance obligations. UK 3. Read about our meetings with the Northern Ireland Assembly’s Finance and Economy Committees to discuss the Institute’s continued advocacy for a reduced corporation tax rate in Northern Ireland. 4. We remind readers that the 2024/25 online self-assessment filing deadline is Saturday 31 January 2026. International 5. The OECD has issued a fourth batch of updated transfer pricing country profiles. 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 Cross-border developments and trading corner here.  

Revenue has issued a press release acknowledging the difficulties the recent exceptional weather may have caused for timely tax compliance.  They have also stated that they will work with adversely impacted taxpayers and businesses to help maintain their good compliance records despite the disruption. The press release outlines the strong record that Revenue has of agreeing flexible payment arrangements for taxpayers and businesses facing temporary cash‑flow pressures. It also advises those impacted by Storm Chandra to contact the Collector-General’s office once their situation permits, to agree mutually agreeable arrangements for restoring timely tax compliance.

Overall outlook Demand for FCAs remains consistently strong, driven by organisations seeking experienced leaders who can deliver governance, transformation, and strategic financial direction. While some areas of recruitment are stabilising, FCA hiring remains comparatively resilient. Where FCAs are most in demand Professional services Senior advisory, transformation, and director/partner‑track roles Expansion of ESG, risk and technical advisory Corporate and multinational sector CFO, Deputy CFO, Head of Finance Finance transformation, FP&A leadership, group reporting Strong demand in tech, pharma, life sciences, and financial services SMEs and indigenous businesses Strategic finance leadership Scaling, funding, and professionalising finance functions Public sector (ROI & NI) Senior finance leadership roles linked to reform and transformation International Strong demand in UAE, Australia, Canada, US, and Cayman Islands Salary and reward trends Salary growth stabilising, but FCAs with transformation, digital finance, or governance expertise still command premium packages Attractive bonus structures and enhanced benefits Flexibility (hybrid working) continues to influence decisions as much as base salary Skills most valued in FCAs Strategic leadership and team development Board‑level communication and stakeholder influence Governance, risk, assurance, and regulatory insight Finance transformation, systems implementation, automation Data literacy: BI tools, ERP expertise, digital finance capability AI literacy: A working understanding of how AI can assist with some accountancy processes Recruitment trends Longer, more rigorous processes with multiple stakeholders Combination of virtual and in‑person interviews Increased use of assessments, including leadership profiling Executive search dominant at FCA level Summary 2026 offers strong career prospects for FCAs. Organisations continue to prioritise senior finance leaders who can guide transformation, ensure governance excellence, and support strategic performance. FCAs who invest in digital, transformation, and leadership capabilities will remain highly competitive across Ireland and internationally.

From the Professional Accountancy team…... Readers may find interesting the content of the CBI s first edition of CBI Financial Crime Bulletin following on from the previous AML Bulletin series. The bulletin was published in December 2025. It deals with areas such as risk assessments referencing Ireland’s AML National Risk Assessment which is currently being updated and hopefully will be published this year. It also deals with crypto, fraud and scams ,financial sanctions and EU AML developments with AMLA now up and running  .   This information is provided as resources and information only and nothing in these pages 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 pages. 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 these pages, 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 in these pages.    

Last Wednesday, representatives from the Institute met with members of the Northern Ireland Assembly’s Finance and Economy Committees in Stormont to discuss the Institute’s ongoing campaign to reduce the corporation tax rate in Northern Ireland. The Institute spoke about the need for a coherent long term industrial policy in Northern Ireland that attracts investment, creates secure, well-paid jobs, and fosters innovation and entrepreneurship. As part of this overall industrial strategy, Northern Ireland needs to reduce its corporation tax rate and provide policy certainty for potential investors. The feedback from members of each committee was positive and informed. It was clear that they are deeply committed to improving the economic environment in Northern Ireland and the living standards of all citizens. The key issues and Institute stance Addressing the challenge of the impact on the block grant that Northern Ireland receives every year, the Institute outlined various measures that could be utilised to mitigate the block grant reduction, most notably the use of a low interest loan from Westminster to manage the initial drop in corporate tax revenue that would arise immediately after a corporation tax rate reduction. Phased introduction of a lower corporation tax rate could also be implemented to reduce the immediate impact on the block grant. From an economic perspective, previous research from the ESRI shows that a reduction in corporate tax rates would increase investment in Northern Ireland by 7.5 percent which would also lead to substantial employment opportunities for people in the region. Progress to date and next steps  The next step is to take the campaign to Westminster to push the agenda forward. As part of this, the need for cross party support to reduce Northern Ireland’s corporation tax rate is crucial in order for progress to be made with HM Treasury; this point was also highlighted during last Wednesday’s meeting.  To begin progressing the issue nationally, last November the Institute wrote to the Exchequer Secretary to the Treasury on this issue which highlighted that the ultimate aim of a lower rate is for it to become self-funding in the longer term, but that initially it would necessitate a replacement loan at a low interest rate from HM Treasury to fund the necessary block grant reduction. To date, the Institute has met with a broad range of stakeholders on this issue and has now met with all the major political parties represented in the Northern Ireland assembly.  Last year the Institute launched its refreshed campaign for a lower corporation tax rate when it published its position paper ‘Enhancing Our Competitiveness: The case for a reduced rate of corporation tax in Northern Ireland’. Share your experiences and insights If you work in a local business and would like to participate in the Institute’s campaign by being a voice of support for a lower rate, contact us by email.

There are a number of non-routine deadlines arising this week for taxpayers and agents. On the tax payment front, there is the disclosure opportunity for businesses to regularise payroll obligations for 2024 and 2025 following the Karshan case (explained further below). The deadline for disclosures is 5pm on Friday 30 January 2026. On the consultation front, two ongoing public consultations, on electronic withholding tax (eWHT) and VAT modernisation also close at 5pm on Friday 30 January 2026 . We have included further information below as well as in our newsletter last week. We strongly recommend that readers complete these surveys if applicable. Please note that you do not need to include the identifying information at the start of the surveys to progress and Revenue has advised us that surveys without taxpayer identification numbers and other such information will still be accepted by them. The disclosure and settlement opportunity to regularise payroll obligations for 2024 and 2025 gives businesses, that may have misclassified employees as contractors, the mechanism to have the correction treated under the Code of Practice for Revenue Compliance Interventions without the imposition of interest and penalties.  Further details of the disclosure opportunity are available in our newsletter item last week. The joint public consultation on eWHT is inviting stakeholder to share feedback on a proposed electronic withholding tax (eWHT) system in Ireland, which aims to introduce real-time taxation for self-employed taxpayers subject to withholding tax (WHT). Further details are available in our earlier newsletter feature. The VAT modernisation survey is aimed at VAT-registered businesses managed by Large Corporates Division and will inform Ireland’s implementation of the EU’s VAT in the Digital Age (ViDA) package and the implementation of eInvoicing in Ireland. Further details are available in our earlier newsletter items.

There’s just five days to the 2024/25 online self-assessment (SA) filing deadline on Saturday 31 January 2026. By way of reminder, on Saturday 31 January HMRC will be operating a restricted service with assistance only available via webchat and no telephone support available on 31 January, except for a call-back service for vulnerable taxpayers. Anyone who may need to call HMRC for assistance before filing a return is therefore advised to file that return on or before Friday 30 January 2026 to ensure they are able to call HMRC and receive the necessary assistance. HMRC has also asked us to remind agents who are using the SA reactivation option on the Agent Dedicated Line (ADL) that telephone agents on this part of the ADL cannot deal with other general SA queries. Option 1 on the ADL (the reactivation option) is for SA reactivations only. Advisers are unable to address any other SA enquiries via this route and are also unable to transfer the agent to the general enquires line.  Selecting the wrong option increases the time that the agent can get their issue resolved which causes frustration for the agent and adviser alike.

Revenue has published new guidance on the enhanced deduction for eligible construction expenditure introduced by Finance Act 2025. The enhanced deduction allows companies to claim 25 percent of eligible construction costs, up to €50,000 per apartment, for completed developments. In broad terms, a completed development refers to a qualifying apartment block that meets certain defined conditions. A qualifying apartment block is a multi-storey building comprising of at least 10 apartments and is either:  a newly constructed building, or  a building or structure that, as part of a qualifying refurbishment, has undergone a material change. To claim the enhanced deduction, the company must be a relevant person which is specified as a property developer or a relevant contractor. The relevant person must be carrying out a relevant property development trade or a qualifying trade when developing the completed qualifying apartment block and the deduction must be pro‑rated based on the company’s beneficial ownership share in the development. The enhanced deduction is in addition to the standard trading deduction and further details of the definitions are included in the guidance together with examples and calculation information.

In this week’s detailed miscellaneous updates which you can read more about below, the Scottish and Welsh Budgets have been published and HMRC has published draft regulations for technical consultation on the construction industry scheme (CIS). In other news this week: As the latest Finance Bill makes its way through Parliament, HMRC has published a collection page of supporting documents related to the Bill and its passage,  Agent Update 139 is available, The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place, and finally, Check HMRC’s online services availability page for details of planned downtime and the online services affected. Scottish and Welsh Budgets The Scottish and Welsh Budgets took place earlier this month. The Scottish Parliament has published a tax infographic for the Scottish Budget 2026/27 and the Scottish Fiscal Commission’s Report, Scotland’s Economic and Fiscal Forecasts – January 2026 is available along with a one-page graphic of key figures and a summary document. More detailed information on the Welsh Budget is set out in the detailed spending plans. Changes to the CIS HMRC has published draft regulations for technical consultation that are intended to simplify administration of the CIS. The proposed changes include: an exemption for payments made to local authorities or public bodies from the scope of the CIS. and a requirement for construction contractors to file a nil return when they have not paid any subcontractors in a month, unless they have notified HMRC in advance that they will not make any such payments that month. The proposed changes will take effect from 6 April 2026. The technical consultation closes on 3 February 2026.

In this week’s cross-border trading corner, we bring you the latest guidance updates and publications. 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. HMRC has also sent a reminder that from 15 December 2025, traders can no longer use the same process in the Customs Declaration Service (CDS) for handling indirect exports end-to-end from Northern Ireland. Change to the CDS process for indirect exports From 15 December 2025, traders can no longer use the process in the CDS for handling indirect exports end-to-end from Northern Ireland. Indirect exports are movements that start in Northern Ireland and depart from a port of exit in a European Union (EU) member state, rather than being directly moved from a port or airport in Northern Ireland. However, traders can still use the CDS for goods exiting via Ireland. There are alternative ways to move goods depending on the circumstances which HMRC has set out below: “Alternative ways to move goods   You can continue to move your goods using the alternative processes below. You should check that the process you choose is appropriate for your circumstances; these are: Submit your export declaration in CDS if you’re moving goods through a port of exit in Ireland - if you use this process, you must ensure that: the Export Declaration must include the Additional Information (AI) code: ‘AG999’ in DE 2/2, the Office of Exit code the goods are intended to exit from in Ireland is entered in DE 2/2 against code AG999,  D/E 5/12 Office of Exit must show the Office of Exit as matching the Office of Export, your haulier carries a copy of the export declaration, either in paper or electronic format, you include the Movement Reference Number (MRN) of the declaration in the Irish Revenue’s Pre-Boarding Notification (PBN) for movements exiting on a roll on roll off, or you provide the MRN to the airline or handling agent for movement exiting via air. If you do not follow this guidance and enter the Office of Exit as an EU location in DE 5/12, it is no longer possible to close your declaration. Please note this option does not apply to exits via other EU member states. Declare a direct export with the Customs Authority where the goods depart – this option is only available if the goods are under €3,000 in value and are not subject to licence controls,  Use the Common Transit Procedure where the destination is within a Common Transit Convention (CTC) country – this can include Great Britain which is a signatory to the CTC. Read further guidance on the CTC.  Make changes to the routing and move the goods directly from Northern Ireland, as the majority of qualifying Northern Ireland goods  do not require an export declaration when moved directly from Northern Ireland to Great Britain, unless this is required to fulfil an international obligation – for example, for the movement of endangered species.  Move goods under a single transport contract  with an airline or shipping company who take over the carriage of the goods in Northern Ireland. Please note, this cannot be used for movements exiting by road, or goods subject to excise duty.  Arrangements for moving goods directly from Northern Ireland to Great Britain, either under unfettered access or in the limited circumstances where declarations apply, are unchanged.”  HMRC can be contacted for any queries on this change via email to AESteam@hmrc.gov.uk.  Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows: Designated export place (DEP) codes for Data Element 5/23 of the Customs Declaration Service External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service Bringing commercial goods into Great Britain in your baggage CDS Declaration Completion Instructions for Imports Transit newsletters — HMRC updates Reference Documents for The Customs Tariff (Suspension of Import Duty Rates) (EU Exit) Regulations 2020 Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020