London Interbank Offered Rates (or LIBOR) has historically been one of the main interest rate benchmarks used in global financial markets and it underpins trillions of dollars of financial contracts. However, the way banks fund themselves has changed and consequently LIBOR is not now perceived to be a reliable benchmark for interest rates.  Therefore, LIBOR as a reference rate in loan agreements or derivatives was discontinued from 31 December 2021.  The discontinuation of LIBOR and the transition to alternative benchmarks will require action from many businesses. To assist their members with this transition the Institute of Chartered Accountants in England and Wales (ICAEW) has produced several Helpsheets, articles and webinars which they are making available to members of Chartered Accountants Ireland. The Helpsheets are in the form of questions and answers, each addressing an accountant in a particular field.  Members might find the following Helpsheets particularly useful. 10 Accounting And Disclosures Questions Finance Should Be Asking About Libor Transition; 10 Questions External Auditors Should Be Asking Finance Directors About Libor Transition.; 10 Questions NEDs Should Be Asking About Libor Transition. These Helpsheets and other useful material discussing the timelines and the impact of the changes can be accessed on the ICAEW webpage. Other Sources of information and guidance The Ulster Society of Chartered Accountants Ireland has published an article for their members. Financial Conduct Authority The Central Bank of Ireland  Listed below are some links to relevant articles published by member firms in Ireland. Deloitte:  EY  KPMG  Mazars  PWC

Since the outbreak of Covid-19, there have been huge challenges for many businesses, with accountants playing a critical role in helping them navigate the uncertainties. Amongst this disruption, one significant change which may have slipped off some businesses’ radar is the discontinuation of LIBOR (the London Interbank Offered Rate), and deadlines are imminent. As you are probably aware, public authorities globally have announced that LIBOR, a series of benchmark reference rates used for calculating interest rates for financial products, is no longer sustainable and the market should move to robust alternative rates. In the UK, the Bank of England and the Financial Conduct Authority (FCA) have set out the need for this transition, and from April 2021 lenders will no longer be able to offer new sterling loans linked to LIBOR, and any existing LIBOR based loans will need to be switched by 31 December 2021. This will affect a significant proportion of British businesses in some way. LIBOR is found in commercial loans, leasing and servicing contracts, discount rates used in valuations and company pension schemes. The transition will have implications ranging from the way businesses finance themselves, to potential impacts on accounting systems and tax. Many businesses may now need support in understanding how the transition could affect the payment or receipt of interest after the end of 2021, the legal position of a new contract, and the nature and impact of the new alternative rates. Replacements for LIBOR will be quite differently constructed. For example, the main alternative rate that may be used to replace LIBOR, particularly for medium to large businesses, is SONIA (Sterling Overnight Index Average). Whilst LIBOR is available as a forward-looking term rate for different tenors, for example one month, or three months, SONIA is a backward-looking overnight rate. For smaller businesses, other rates such as Bank of England Base Rate may be offered, but this too is constructed differently to LIBOR. For example, unlike LIBOR, it does not include any term bank credit risk or liquidity premium. The practical challenges when taking out new lending on alternative rates to LIBOR or transitioning existing contracts, are not insignificant. Additionally, lenders are now starting to contact clients to discuss contracts and new rates, so businesses need to be prepared. To help with this preparation, ICAEW and UK Finance, working alongside the CBI, ACT and LMA, have developed a new simple introductory guide which can be given to clients and also used by any accountants or advisers of businesses who are not yet familiar with the transition. The guide sets out what is happening, helps businesses understand if it affects them, what they need to do and where they can go for further information. Accountants and advisers have a very important role at the centre of this transition and can help secure the best outcomes for businesses and clients. Now is the time for both accountants and businesses to put LIBOR on their list of priorities for 2021. For more information, please visit the Institute of Chartered Accountants in England and Wales’ webpage on LIBOR transition or in addition to its introductory guide, please also see UK Finance's detailed guide on the discontinuation of LIBOR.   

Diversity & Inclusion initiatives aren’t just there to avoid controversy; they should be there for life. Orla McAuliffe outlines six key changes that can be made to D&I efforts to make a better, smarter and more effective organisation. Diversity and Inclusion (D&I) is often spotlighted among significant, life-defining issues of gender, race, disability, or sexual orientation. It is often assumed that if these issues are not relevant to your workplace, it doesn’t need your attention. However, if you make space and time for D&I in the workplace before it becomes necessary, your business, workforce, and customer base will all benefit. Rather than being treated as merely a tool to avoid controversy, an effective D&I programme will lead to a new appreciation for the diversity of thought, inclusive leadership models, and customer diversity. What is often overlooked is that the introduction of D&I initiatives not only ticks legal boxes and avoids problems; it also encourages the growth of your business in incredible ways. Increased employee retention, growth in productivity rates, increasingly satisfied customers, and a rise in online attention and positive reviews can all be traced back to real-life examples of D&I success stories. Managers take the lead Anyone can and should strive to make their workplace more diverse and inclusive. However, it is vital that leaders – who are ideally from a range of demographic backgrounds themselves – are seen to be genuinely enthusiastic about fostering cultural diversity in their organisation. Additionally, these leaders must include and work with middle management on this issue. Six things leaders can do to promote D&I Workplaces can take a few practical steps to become more diverse and inclusive without a full D&I plan or training: Review your company’s website and other materials and update the imagery so that all demographic groups are represented somehow. Allow flexible work hours and location. Particularly in the post-COVID-19 world, remote working should not be treated as a bonus but as a fact of life. It is a gamechanger for many individuals with specific physical needs, family responsibilities, or neuro-divergencies (such as dyslexia or autism spectrum disorder) who may otherwise be intimidated by the office environment. Not only are you giving them an opportunity to work, but their fresh and unique perspective will often make a significant impact on your team and contribute to your workplace’s diversity of thinking. Make your physical workplace inclusive. The legal accessibility requirements should be treated as the bare minimum. Check the temperature (most buildings default to men’s comfort zone, not women’s); think about buying sanitary products for the bathroom; buying non-alcoholic and alcoholic beer for staff events; and providing milk alternatives in the canteen. Avoid using unnecessarily gendered language in all literature, from job descriptions to everyday communications. This goes beyond the use of pronouns and extends to language more generally. For example, using gender-coded words like ‘aggressive’ in a job description may dissuade women from applying. Instead, focus on results-oriented job descriptions. Familiarise yourself with the world calendar and bear in mind that employees, customers, and suppliers may belong to different cultures and observe different holidays. Include events such as Pride month, and engage in a way that feels sincere and natural – not everybody needs or wants a parade. Still, customers and employees appreciate feeling seen and valued. Engage with your community and partner with non-profits or local organisations, particularly those that mirror your existing business model. Orla McAuliffe is Founder of the Professional Training Centre.

2020 has taught us many things, including how we cope with change. The future, too, is set to be full of change. How, then, should businesses steer their teams safely to the other side? Louisa Meehan explores. At the end of 2019, Calum Chace, an artificial intelligence expert, wrote in Forbes, “Change has never been this fast. And it will never be this slow again. Hang onto your hat: the 2020s are going to be astonishing.” Despite the accuracy of his prediction, he could not have foreseen the level of change we experienced in working, living, and leading our businesses through 2020. If we know that change is inevitable, it is essential to our survival in business to understand how we should manage it. Dr John Kotter, a change management expert, claims that around 70% of change efforts are unsuccessful because of a failure to focus on people issues. For change to be successful, business leaders should spend 80% of their time establishing direction, aligning, motivating, and inspiring people. The remainder of their time should concentrate on management tasks such as planning, budgeting, organising, and problem-solving. Unfortunately, in most change scenarios, these percentages are reversed, and leaders find themselves stuck in the detail of management issues. Pushing change forward To overcome resistance to change, the driving forces (external and internal aspects that motivate change) must outweigh the hindering forces (resisting/decreasing driving forces that attempt to maintain the status quo). It must be a change that is considered essential. For example, look back at your list of new year’s resolutions – how many have you completed? Aside from the calendar changing over, there is no impetus for you to make a change. The impact of a global pandemic provided a strong driving force for change: the preservation of life. This enabled organisations to take steps that previously seemed impossible almost overnight, including the move to remote working. Eight-step change model A leader can do several things to support large-scale transitions in the workplace. Kotter has a well-established eight-step change model: Create a sense of urgency. Form a guiding coalition. Create a vision. Communicate the vision. Empower others to act on the vision. Create quick wins. Build on the change. Institutionalise the change. Creating your vision Creating and communicating the vision for change is critical for a leader in supporting their team during a transition. They also need a clear understanding within a team about what they are doing and, more importantly, why. Helping the team envision the ‘north star’ will help them overcome obstacles that come their way. This vision must be clear, and you should be able to articulate it in five minutes or less. Communicating your vision When we communicate with others, people remember how we made them feel; they rarely remember what we say. So, when preparing to share your vision, doing so in a heartfelt and straightforward manner will typically be most effective. You can leave the technical details to the relevant parties responsible for specific aspects of the change. Implement your vision It will come as no surprise that creating quick wins is a crucial component to effective change. When you bring a team on a transition journey, you need to create an opportunity for celebration. This drives momentum and motivation within the group. Change has never been this fast before, and the pace is set to continue. As a leader, your team needs you to provide strong communication on your organisation’s ‘north star’ to give them clear direction on where you are going. Louisa Meehan is the Founder of Woodview HRM.

With restrictions lowering soon, it is easy to feel hopeful and optimistic about the second half of 2021. However, there are still some things businesses must consider before this ‘feel-good phase’. Graham Reid and Neil Gibson explain. In business, there is a widespread feeling of optimism for the second half of 2021. Reopening the domestic economy and a surge of pent-up demand should lead to a feel-good phase for the economy and businesses. More challenging policy decisions lie ahead, but a solid growth phase is on the horizon barring a significant health setback. However, this will not be the case for all, with the end of government supports and the impacts of structural changes in several sectors leading to increased unemployment. This contrast, often referred to as a ‘K-shaped’ recovery, will likely be a significant source of policy debate. The bubbling up of confidence, indicated by stock prices and levels of M&A activity across the world, suggests that the disruption of our lives may be near its end. Despite this, the disruption of our economy is only just getting started. There are several takeaways for business to consider. Cost The risk of accelerating inflation, fluctuating currencies linked to Brexit, and the pace of vaccine rollouts, among other things, means that businesses should be very aware of their exposure to inflationary pressures and the mitigations that could reasonably be taken. Pay packets Salary pressures are likely to be significant in the areas that have experienced a busy and challenging year. Reward will be sought for the effort made and disruption caused, particularly for those on the frontline of the pandemic. The relative measures of variable versus regular pay, increased flexibility, and improved working conditions need to be considered to ensure pay costs are kept under control where possible while recognising the step-up made by many workers in the most testing of years. A return to the office With an easing of some, yet not all, restrictions on the horizon, it feels premature to worry about returning to more typical working conditions for office staff, but it is essential to prepare. Expectations that returning to the office will enhance productivity may prove wide of the mark as people readjust to being back with colleagues. This re-energising and recharging phase will be important but may have some impacts on performance. Evolving into a flexible working environment and ensuring it works for all will present management challenges. However, it should ultimately result in higher-performing teams if done correctly. Mental health support Emerging from a very challenging period economically and personally can impact individuals’ decision-making abilities. For some, it will be overwork that is causing strain, and the mental health implications for both young and old will cast a long shadow. Businesses must ensure that the wide range of mental health impacts is understood and handled sympathetically to look after their staff’s well-being and support day-to-day business performance and strategic decision-making. The sustainability agenda There is no sign that the sustainability journey will be paused in the face of economic hardship. Policy appears to be forging ahead with a ‘build back greener’ agenda, and the environmental, social and governance (ESG) reporting journey is accelerating and widening. The global trend to break up supply chains and move to a multi-nodal business model also has implications for the environmental cost of products or services. Locking in these benefits and using the disruption as a catalyst for change can be a way of turning a crisis into an opportunity. The ‘S’ in ESG The ‘E’ in the ESG agenda has garnered the most attention, but businesses cannot ignore the ‘S’. The importance of community has been brought to the fore over the last 12 months, especially the critical role firms play in their local labour market. This comes from the wages and taxes they pay, the support they provide to their workers, the purchases they make, and their direct contribution through corporate social responsibility (CSR) efforts, which are more critical than ever. The survival of many arts and entertainment businesses may depend on corporate support. An important component of economic and social recovery will be to ensure that social benefits are maximised. Digital and emotional journeys Digital progress has been brought forward in almost every sector, and the potential benefits of better use of technology are much clearer. The advancement in digital adoption among government departments and the acceleration and sophistication of online sales platforms by retailers have progressed at a pace unimaginable before the pandemic. It has also been a time to recognise the role of emotional, as well as artificial, intelligence. The key to maximising the benefit of technology is recognising what it can do better and what it cannot. Seizing opportunity Every period of disruption presents opportunity. The misfortune or unpreparedness of others can allow firms to acquire or to capture market share from rivals. Brexit, COVID-19, and the evolution of digital and flexible working all offer considerable windows of opportunity for firms across the island. Maintaining a ‘front foot’ attitude, perhaps against a rather patchy economic backdrop and increased concern over costs, will be critical. Graham Reid is Head of Markets at EY. Neil Gibson is Chief Economist at EY.

  In this week’s Public Policy news, read how Exchequer and CSO figures released this week show a mixed picture for Ireland’s economy; the launch of schemes to support retail and businesses in both Ireland and Northern Ireland; the UK’s enshrining in law of its 78 percent target to reduce its greenhouse gas emissions; and the opening of new Europe Direct centres in Ireland to reinforce the connection between the EU’s institutions and its citizens. Exchequer figures show increase in both tax revenues and expenditure Exchequer figures published this week show an increase in tax revenues in April of 20 percent compared to this time last year, with robust income tax receipts and excise duties. Total gross voted expenditure to end-April was €2.2 billion higher than for the same period last year, with spending by the Department of Social Protection to-date up €2.3 billion year-on-year. The 12-month rolling Exchequer deficit stands at just under €12.5 billion. Commenting on the figures, Minister for Finance, Paschal Donohoe, TD, said that while the figures show the continuing impact of the pandemic on public finances, they also point to some of the underlying strengths in the economy, with income taxes and excise duties, in particular, continuing to perform well: “The flexibility and adaptability shown by employers and employees throughout this pandemic has been extraordinary. Today’s figures suggest that as the economy opens up they can look forward to brighter days and a sustained recovery ahead”. CSO publishes April 2021 monthly unemployment statistics Figures released by the Central Statistics Office (CSO) this week show that the ‘COVID-19 adjusted’  unemployment rate for April 2021 was 22.4 percent if all claimants of the Pandemic Unemployment Payment (PUP) were classified as unemployed. This figure is down from 23.8 percent in March 2021, and from 30.5 percent this time last year. The seasonally adjusted figures show that the rate of unemployment in Ireland in April 2021 remains unchanged from the March 2021 figure of 5.8 percent, and 1.1 percent up on the figure for this time last year.  These figures classify claimants of the PUP as employed. Supports continue for Irish retail and business Minister of State for Business, Employment and Retail, Damien English, this week launched a new round of the Covid-19 Online Retail Scheme, under which €5 million will be made available to help Irish businesses upgrade their websites and improve their competitiveness in online retail. Separately a report was published by Bank of Ireland on credit card data revealed that overall consumer spending dropped by 5 percent in April, and showed a ‘mixed picture’ of spending levels. Commenting, Christian Pierce, Group Chief Data and Analytics Officer at Bank of Ireland said that while April spending saw a slight dip overall, “a more detailed analysis reveals that people are looking forward to a brighter summer ahead.”  Minister English also invited entrepreneurs and entrepreneurial teams to apply for Enterprise Ireland’s €1m Competitive Start Fund (CSF),which aims to increase the number of diverse High Potential Start-Ups (HPSUs) that have the potential and ambition to succeed internationally. This fund is now open for applications from founders of early-stage start-ups from all sectors with an eligible innovative product or service set for global markets. Schemes to support retail and holidays-at-home in Northern Ireland          Further supports for retail in Northern Ireland were announced this week, as Economy Minister Diane Dodds revealed that every person in Northern Ireland aged 18 and over will be eligible to apply for a pre-paid card worth £100 to spend in their local high street under the High Street Stimulus scheme. The Minister made the announcement as retail outlets re-opened under the recent Coronavirus guidelines. Part of the Economic Recovery Action Plan, the High Street Stimulus (HSS) is designed to stimulate local businesses, including retail and hospitality sector outlets, following the pandemic. Under the scheme, eligible individuals aged 18 and over will be asked to apply for the pre-paid card through a dedicated online portal. The card must be used in ‘bricks and mortar’ businesses within Northern Ireland and cannot be used online. The Minister also revealed that, if conditions are right, the HSS scheme will open at the end of the summer. Also announced was the Holiday at Home Voucher Scheme, which will allow Northern Ireland households to claim back 50 percent off a stay of two nights or more in certified accommodation, up to the value of £100. The scheme will be launched in the autumn to drive demand after the summer season. Further details will be released in due course. UK enshrines in law its record-high targets for emissions reductions The UK government has enshrined in law one of the world’s most ambitious climate change targets:  its new target under the sixth Carbon Budget to reduce the country’s greenhouse gas (GHG) emissions by 78 percent by 2035 from 1990 levels.  If achieved, this target would bring the UK more than three-quarters of the way to ‘net zero’ by 2050. The UK is required under the Climate Change Act 2008 to issue carbon budgets which provide Ministers with advice on the volume of GHG emissions the UK can emit during the period 2033-2037. The government set the target following advice published in December 2020 by the Climate Change Committee (CCC). Under the sixth Carbon Budget the government will incorporate the UK’s share of international aviation and shipping emissions for the first time. Policies to meet the carbon budgets – and the Net Zero Strategy – will be published before COP26, the United Nations Climate Change Conference to be held in Glasgow in  November 2021. Seven EUROPE DIRECT centres open in Ireland Seven new generation EUROPE DIRECT centres opened in Ireland this week following an announcement by the European Commission that it would be revamping its network of information and communication points around Europe. The centres are part of a community of 424 Europe Direct centres around Europe whose purpose is to reinforce the connection between EU institutions and citizens. Their role will be to help explain how Europe is combatting the COVID-19 pandemic, boosting recovery through NextGenerationEU, and tackling the green and digital transitions. The centres will offer information on EU policies and priorities to local media and will help the Commission keep track of local sensitivities linked to EU policies. They will also promote active European citizenship in schools, and coordinate with other EU networks in the regions, ensuring easier local access to information for citizens, organisations and businesses. The centres are in Ballinasloe, Blanchardstown, Clones, Letterkenny, Portlaoise, Sligo and Waterford.   You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our Sustainability Centre.   Read all our updates on our Public Policy web centre

In Irish tax developments, the ROS pay and file deadline for 2021 is Wednesday, 17 November and updates to the R&D manual set out Revenue’s interpretation of qualifying rent for the R&D tax credit. On the UK front, read HMRC’s apology for a recent data breach and the actions some agents may need to take as a result. While in international tax, new information is published by the European Commission on VAT e-commerce rules effective from 1 July 2021.      Ireland The 2021 extended ROS return filing and payment date for self-assessment income tax and capital acquisitions tax is Wednesday, 17 November 2021; See the latest updates to the R&D manual setting out Revenue’s interpretation of qualifying rent for the R&D tax credit; UK HMRC has apologised for a recent data breach which resulted in 2019/20 late filing penalty notices being sent to the wrong agent in some cases – some agents may need to take action as a result; A reminder about changes to eligibility for the CJRS from 1 May 2021, upcoming CJRS deadlines, penalties for overclaims of SEISS grants, a new phishing scam and the next VAT deferral deadline feature in this week’s COVID-19 HMRC administered supports update; International The European Commission published new information on the VAT E-Commerce rules effective from 1 July. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter.

The Annual General Meeting (AGM) of Chartered Accountants Ireland (the Institute) will be held on 28 May 2021 at 2.30pm IST.  On 29 April 2021 members will have received an email from the AGM administrators CIVICA, from email address Chartered Accountants Ireland CAIAGM@cesvotes.com. This email included the meeting ID and your unique two part security code to allow you to both vote and join. If you are one of a very small number of members who have no email address you will receive a letter shortly after this date. If you did not receive an email please contact AGM2021@charteredaccountants.ie – please remember to check your spam/junk folders first.  Voting on Resolutions  The email you received will include a link to allow you to enter the voting platform and cast your vote on all the resolutions. Information on the resolutions will be available in the AGM Booklet 2021 along with any other information regarding the AGM. Please note that the voting site is not accessible via search engines such as Google; please click on the link you were sent or enter it into the address bar of your browser to access the site directly.  If you are experiencing technical difficulties, please see the "help" link at the bottom of the CES login page. Alternatively, you can call Mr Alex Lonie of CES on 0044 (0)20 8829 8452. All other general AGM questions can be sent to AGM2021@charteredaccountants.ie    Voting on-line will remain open until 1pm IST on 21 May 2021.   A short video on how to vote at and participate in the AGM is available HERE.     What’s next  Over the coming weeks more information will be provided to you on how to join the AGM. We will post alerts in this newsletter and information will be available on the General Meetings page of our website.    If you have any queries, please email AGM2021@charteredaccountants.ie or contact the Institute Secretary at Secretary@charteredaccountants.ie  

Chartered Accountants Ireland and The Housing Agency will launch Owners’ Management Companies - Concise Guide for Directors at a webinar at 1pm on Wednesday 19 May. The guide is written by Níall Fitzgerald - Head of Ethics and Governance, Chartered Accountants Ireland (pictured, right), and David Rouse - Multi-Unit Developments Adviser, The Housing Agency. An increasing number of people in Ireland live in apartment developments and managed estates. Between 2002 and 2016 the number of apartments in Ireland rose by 85%, and in 2019 planning permissions in Ireland for apartments exceeded those for houses for the first time. High standards in owners’ management companies (OMCs) are central to sustainable communities.  OMCs and their directors are responsible for the stewardship of shared facilities, amenities, and services. This guide helps directors of OMCs to navigate important areas of corporate governance. It will also be of interest to housing bodies and local authorities, landlords, homeowners, auditors, accountants, management agents, and others providing services to OMCs.  The guide identifies ten key considerations for directors of OMCs; provides practical guidance and insights on how to comply with requirements and achieve the objectives of an OMC; and suggests further sources of information and advice. Pre-registration for this free event is required via this link. Upon registration a confirmation email will issue with information about how to join the session. This webinar will be recorded for future use. 

Businesses in Ireland and the UK are optimistic about the future, a study by Close Brothers Commercial Finance has found. The research, which surveyed 900 SMEs, found that half of businesses believe performance will be steady over the next twelve months, and further 38% expect to expand. This positive outlook comes as businesses enter a critical new phase of recovery. As the vaccine roll-out continues and lockdown restrictions begin to ease, many will be considering their short and medium-term strategy. The survey also found that 58% of companies plan to seek funding over the next twelve months, with many saying their focus was on improving cash flow. For business-to-business companies, solutions like invoice finance and asset-based lending can be useful tools to improve cash flow during recovery, says Paul Stephens, Head of Corporate & ABL at Close Brothers Commercial Finance. “We are seeing a surge in confidence,” he says. “Despite continued challenges, the business owners we’re working with are now focused on reinvigorating their trading and financial strategies. Many are excited to see restrictions lift. “We’re keen to support the market’s next steps and our suite of products is designed to help companies overcome a range of practical challenges, from providing immediate cash flow injections to strengthening access to working capital longer term. “We’ve also seen activities around mergers and acquisitions increase recently – it certainly feels like the market is looking to the future, albeit with an air of caution.” Close Brothers Commercial Finance first opened their doors in Ireland over ten years ago during the 2008 financial crisis. They offer asset finance, invoice finance and asset-based lending solutions to businesses. “Invoice finance releases working capital from unpaid customer invoices as soon as they as raised,” explains Paul. “Similarly, asset-based lending enables borrowers to combine working capital from released from receivables with funds secured against assets on their balance sheet, as well as cash flow loans. It is widely used to support larger transactions and restructures. “The characteristics of these lending facilities can also make them useful tool during market recovery. They can quickly improve a business’ liquidity and provide a great deal of flexibility because we structure repayments to suit individual requirements,” he says. Find out more about Close Brothers’ specialist funding options today at www.closecommercialfinance.ie Close Brothers Close Brothers is a UK merchant banking group providing lending, deposit taking, wealth management services, and securities trading. Close Brothers Group plc is listed on the London Stock Exchange and is a member of the FTSE 250. Close Brothers Commercial Finance is a trading style of Close Brothers in Ireland. Our core purpose is to help the people and businesses of Ireland and Britain succeed over the long term. To achieve this, all of our diverse, specialist businesses have a deep industry knowledge, so they can understand the challenges and opportunities that our customers and clients face. We support the unique needs of our customers and clients to ensure that they thrive, rather than simply survive, whatever the market conditions. (This article is sponsored by Close Brothers)

Welcome to this week’s Technical Roundup.   In developments this week, the FRC has announced the appointment of 19 members to the Advisory Panel; The April 2021 edition of the EFRAG Update, summarising public technical discussions held and decisions taken during that month, has been published; IAASA has published its 2020 Annual Audit Programme and Activity Report which provides a summary of the activities performed during 2020 to oversee the audit profession in Ireland. Read more on these and other developments that may be of interest to members below. Financial Reporting Following the establishment of the Advisory Panel in January 2021, the Financial Reporting Council (FRC) has announced the appointment of 19 members to this Panel with effect from 1 May 2021.  The Advisory Panel is a group of appointed non-executive subject matter specialists, who are called on to provide expert advice and input across the breadth of the FRC’s activities. The new Panel members include Úna Curtis from the Institute’s Accounting Committee.  The recording of the UK Endorsement Board (UKEB) meeting, which was held at on 22 April 2021, is now available. The topics discussed included the draft response to the IASB Post Implementation Review of IFRS 10, 11, 12, and the IASB Agenda consultation. The UKEB secretariat has completed its feedback statement on the IASB ED/2020/4 Lease Liability in a Sale and Leaseback (Proposed Amendment to IFRS 16) project. The feedback statement summarises UK stakeholder views shared with the UKEB secretariat and describes how those views were reflected in the final comment letter submitted to the IASB. It will be available on the UKEB website shortly. The past, present and future of financial reporting, and its global impact, will be discussed by a host of speakers in this year’s IFRS Foundation Virtual Conference, being held on 3–4 June. To coincide with the 20th anniversary of the International Accounting Standards Board (IASB) this year, the conference will include a panel discussion on developments in capital markets and international financial reporting during the past 20 years; an interactive panel session on the future of corporate reporting with investors, preparers and auditors; and the latest developments in the IFRS Foundation Trustees’ work on sustainability reporting. Also from the IFRS Foundation boards, committees and advisory bodies: The April 2021 IASB Update has been published and the work plan updated. This IASB Update highlights preliminary decisions of the IASB. The IASB met remotely on 27–28 April 2021. And, in the April 2021 episode of the monthly IASB podcast, the Chair and Vice-Chair of the IASB talk about the Board’s discussions at the meeting. The IFRIC Update is also available. IFRIC Update is a summary of the decisions reached by the IFRS Interpretations Committee (IFRIC) in its public meetings. The Committee met on 20 April 2021. Also, in the first episode of the IFRIC podcast in 2021, just released, the IFRIC Chair and Vice-Chair of the IASB join Technical Staff to talk about recent activities to support the consistent application of IFRS Standards during the first quarter of 2021. The agenda and papers are available for the May 2021 meeting of the IFRS Advisory Council, to be held on 11 May. The EFRAG (European Financial Reporting Advisory Group) April 2021 edition of the EFRAG Update, summarising public technical discussions held and decisions taken during that month, has been published. Also, the EFRAG Secretariat has issued a Briefing as part of the EFRAG strategy to stimulate debate on the IASB discussions on how to account for business combinations under common control. The views expressed in this Briefing are tentative and reflect the EFRAG Secretariat’s understanding of how the proposals included in the IASB’s discussion paper Business Combinations under Common Control would be applied. The Charities SORP-making body has made a new SORP example available on its website, noting that this is the first (of two) examples (‘SORP examples illustrating the impact of the COVID-19 pandemic: England and Wales’), and that this example illustrates the impact of the pandemic on a grant-maker and the effect on both its income and activities. Separately, it is also reported that, following feedback from the SORP engagement strands, the Charities SORP Committee has agreed 15 topics to be reviewed as part of the process for updating the SORP. Access these stories on the Charities SORP-making body website here. Auditing The Irish Auditing and Accounting Supervisory Authority (IAASA) has published its 2020 Annual Audit Programme and Activity Report which provides a summary of the activities performed by IAASA during 2020 to oversee the audit profession in Ireland. The report outlines the outcome of IAASA’s quality assurance review of auditors of public–interest entities as well as IAASA’s oversight of the recognised accountancy bodies who supervise auditors of other Irish entities. The report is available here. The International Auditing and Assurance Standards Board (IAASB) has published its new Framework for Activities. The Framework describes the IAASB’s operating processes and procedures for advancing standard setting and other related activities. The Framework also provides additional public transparency around the IAASB’s prioritization activities, beyond the formally approved due process. After consultations with the Public Interest Oversight Board, the IAASB has published a revised detailed work plan that supersedes the work plan published on February 1, 2021. The IAASB revised the work plan to account for the continued impact of the COVID-19 pandemic on both board operations and stakeholders’ capacity to implement new standards and participate in the IAASB’s due process. Insolvency The European Systemic Risk Board (ESRB) is responsible for oversight of the EU financial system and the prevention and mitigation of systemic risk. It was set up in 2010 following the financial crisis with a mandate to oversee risk in the financial system. It has recently published its ESRB -Prevention and management of a large number of corporate insolvencies. It assesses the risk of a rise in insolvencies in the next couple of years, how a steep rise could be prevented and considers the impact of insolvencies on the banking sector. Click also the link for the press release ESRB . In the UK The Insolvency Service Guidance has been issued about the requirement for independent scrutiny of disposals of company assets in an administration. The regulations the guidance references are The Administration (Restrictions on disposal etc. to Connected Persons) Regulations 2021. Anti-Money Laundering Arising from the recent commencement of  the  Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Act 2021 the RBO Portal where companies and industrial and provident  societies must register beneficial owners has added an FAQ (17) dealing with the legal obligation of “designated persons” to inspect the RBO and report discrepancies and non compliance. The UK government has issued its Statement of Progress on economic crime Plan (2019-2022). The plan was issued in 2019 and the statement highlights some key achievements at the halfway point. It notes that the UK legislature will explore opportunities to introduce legislation that will strengthen the response to economic crime. Sustainability / Non-Financial Reporting The Trustees of the IFRS Foundation have published proposed amendments to the Constitution of the Foundation to accommodate the potential formation of a new International Sustainability Standards Board (ISSB) within the governance structure of the organisation. In addition, the Trustees have published a Feedback Statement that summarises feedback received to their consultation on sustainability reporting. The proposed Constitution amendments and Feedback Statement can be found here. Other areas of interest The Department of Enterprise Trade and Employment has issued its May 2021 newsletter which includes information on the Covid-19 Online Retail Scheme (see more below) and its annual Employment Survey 2020 and Annual Business Survey of Economic Impact 2019. It also contains information on webinars which may be of interest. For example a forum on Wed 12th May at 11 am to inform stakeholders on a proposal for a Corporate Sustainability Reporting Directive to be hosted by the Minister for Trade Promotion, Digital and Company Regulation, Robert Troy T.D. Have you been asked to help a client to apply for the Covid-19 Online Retail Scheme, administered by Enterprise Ireland? The scheme will enable Irish-owned retailers to enhance their digital capability and to develop a more competitive online offer. Successful applicants will be awarded funding to support a maximum of 80% of the project eligible costs with a maximum grant of €40,000. Minimum grant amount payable is €10,000 so proposed company expenditure must be a minimum of €12,500 .See Enterprise Ireland website for full details and a starter guide on how to apply. Applicant companies must provide latest statutory accounts (no more than 2 years old) with the application. Applications close on 25 May 2021 at 12 noon. The European Data Protection Supervisor (EDPS) has issued its latest EDPS Newsletter. Items of interest include data protection and online communication, the European Commission proposal for an Artificial Intelligence Act and the  EU Data protection authorities  joint Opinion on the Digital Green Certificate proposals. The Pensions Authority has welcomed the transposition of the EU Directive (IORP II) on the activities and supervision of institutions for occupational retirement provision into Irish law and these are available at European Union (Occupational Pension Schemes) Regulations 2021. IORP II sets minimum standards for the management and supervision of pension schemes in order to protect the entitlements of members and beneficiaries. Further information and details of the new obligations is available from the Pensions Authority. The Financial Services and Pensions Ombudsman is seeking the input and views of parties that share an interest in the role of the FSPO and the manner in which it delivers against its statutory responsibilities. See here for its Strategic Plan 2021-2023 Stakeholder survey. The closing date for responses is 18 May 2021. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.                  

Incoming Chairman of the London Society, Tríona O'Dowd, is a busy person facing a busy year ahead. Triona joined us to tell us a little more about herself and what she plans to focus on during her year. Can you tell us a little about yourself and your background? I grew up in a village on the Dingle peninsula called Cloghane. It’s located just at the foot of the Conor pass.  It’s here that I naturally developed a love of hill walking. I’ve hiked all over the world from Brandon mountain to Everest base camp.  I have been in London just shy of six years. I’ve loved living in London, at its core it’s a collection of villages, each with its own microculture but it’s the restaurants that I really enjoy. From West African to Tex-Mex, London has it all!   I work for Reckitt and I’m part of the Global Expansion Markets. It has a very dynamic work culture. I’ve always wanted to work for a start-up company and now I have the opportunity to work for a start-up company within FTSE. Why did you choose Chartered Accountancy, and how did you get here? I’ve always felt more comfortable in the world of maths and science subjects than I was at writing. From a very young age I was always going to end up in a more of a maths-orientated profession. It wasn’t until I sat my professional exams that I was faced with looking at my ability and understanding where my true strengths were. I sat my exams in the world of pen and paper. I learnt that my reading and writing speed needed to be addressed. With the encouragement and support of the Institute, I was diagnosed with mild dyslexia. When I was in school, my dyslexia wasn’t fully recognised. Once I learnt to accept it and gain a workaround, the world became my oyster. I’m very proud today to call myself a Chartered Accountant.    What do you value most about your membership of the profession and how do you think those benefits can be used to support the economy and society? Members of the profession are expected not just to be professionally competent but also to observe high standards of conduct. I value these standards, that the Institute expects from its members. In a world of fake news, we can’t take the Institute's Code of Ethics for granted. Society and the economy benefits directly from both professional integrity and ethical decision making. This in turn makes Chartered Accountants highly respected worldwide. Congratulations! You are the incoming chair of the Chartered Accountants London Society; tell us a bit about your plans for your term as Chair?  Thank you. I’m very excited to be the incoming Chairman of the Chartered Accountants Ireland London Society, and consider the position an absolute privilege. It has been a surreal time in the world, but as the UK begins to reopen, initially I will focus on rebuilding connections within the society - not just in London but across Great Britain. Through the online events of late, I have seen an appetite for connection all over Great Britain.  In my early days as Chair I would like to speak to as many members as possible to hear their views and I encourage other members to do the same. Dare I be so bold, as to borrow words from President Michael D Higgins: "Ar aghaidh le misneach agus le chéile". This will be the essence which I would like the committee to be built on.  As a member living overseas, what would you say are the benefits of getting involved or engaging with a society?   I love working for Reckitt, it offers a dynamic and multicultural environment, but I began to really miss the wit and humour of the Irish community and the simple ease in which we converse together. The society has given me the opportunity to continue in the job I love and build an external network of people. I would not have had the opportunity to meet otherwise. London is a very big city and it's important to have a society that is naturally engaging and welcoming to our members. In a post-Covid world feeling part of our society is more important than ever.  Sometimes we can forget to mention an obvious benefit of the society: the events are always good fun. The members that engage with the society have always been very welcoming to me. I have been to many events over the years from Thirsty Thursday to debating sustainability in the Irish Embassy and I can honestly say I have always enjoyed myself!   And finally, Tríona, if you weren’t an accountant, what do you think you would you be/have been?  People fascinate me. When I came to London first, I did a part time course in Birkbeck University in Psychology and I think I would have explored this avenue.  Viktor Frankl said: “Everything can be taken from a man but one thing: the last of the human freedoms—to choose one's attitude in any given set of circumstances, to choose one's own way", and I always remember that quote. Don't forget to check out your own district society.