Balancing the recent news that the UK tipped into recession at the end of 2023 with calls from politicians in his own party to reduce the tax burden in what is most likely an election year, Jeremy Hunt delivered the UK’s Spring Budget 2024 today. According to the Chancellor, the main announcements centred around “more investment, more jobs, and lower taxes”.   The VAT registration threshold will increase to £90,000 from April 2024, the first increase since 2017.  Full expensing which provides 100 percent tax relief for investments in new plant and machinery by companies will be extended to leased assets, when affordable. And the higher 28 percent rate of Capital Gains Tax on residential property disposals will be reduced to 24 percent from 6 April 2024. According to the Chancellor’s speech, the Northern Ireland Executive will receive an additional £100 million under the Barnett Consequential (which compensates devolved administrations with funding where Budget measures do not apply UK-wide) and from April 2025 both the regime for non-UK domiciled individuals and furnished holiday lets will be abolished with a new residence-based regime to be introduced for non-UK domiciles. However, the big ticket announcement was the 2 percent reductions in the rates of National Insurance Contributions for employees and the self-employed, both of which will take effect from 6 April 2024. Members will also be interested to hear that HMRC’s long planned consultation on “Raising standards in the tax advice market” has been launched and essentially examines options to strengthen the tax agent regulatory framework in the tax advice market, and on requiring tax advisers to register with HMRC if they wish to interact with HMRC on a client’s behalf. The Institute will be responding to this consultation and engaging with members on this important issue. The analysis in this and subsequent stories is based on the Spring Budget 2024 publications of HMRC and HM Treasury and specifically the main red book publication. Monday’s edition of Chartered Accountants Tax News will feature the tax announcements in more detail. The Spring Finance Bill 2024 is expected to be published next week, in the meantime supporting documents are available, as is the Spring Budget 2024 overview of the tax legislation and rates. You can also read the Institute’s reaction to today’s Budget.

Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has announced its support for a four-week consultation launched this week aimed at tackling the backstop in local audit and reporting.  The consultation will gather views on legislative changes to the Accounts and Audit Regulations 2015. The UK Companies House is hosting a webinar on 22 February on getting ready for changes to UK company law. They will discuss the first set of changes including new rules for registered office addresses and new lawful purpose statements. Read more on these and other developments that may be of interest to members below. Auditing The International Auditing and Assurance Standards Board (IAASB) has published proposed revisions to ISA 240 The Auditors Responsibilities Relating To Fraud In An Audit Of Financial Statements. The proposals aim to strengthen the standard on auditors’ responsibilities related to fraud by defining the expectations in relation to fraud, delineating more robust procedures, and increasing transparency about the auditors’ responsibilities and fraud-related procedures in the auditor’s report. During the consultation period IAASB will release a videos series to help stakeholders understand the proposed revisions and respondents are encouraged to share their insights by June 5, 2024. IAASA undertakes statutory enquiries and investigations under the companies act 2014 and its own regulations. From time to time, IAASA may need to establish committees to carry out full enquiries/investigations. IAASA is seeking potential members and advisors to enquiry/investigation committees. Expressions of interest are sought by 4 March 2024. The Financial Reporting Council (FRC) has announced its support for a four-week consultation launched this week aimed at tackling the backstop in local audit and reporting.  The consultation will gather views on legislative changes to the Accounts and Audit Regulations 2015. Financial Reporting The International Accounting Standards Board (IASB) has released a webinar which introduces IFRS 18, which is expected to be issued in April 2024.  This new Accounting Standard, which will replace IAS 1, will respond to investors’ demand for better information about companies’ financial performance. This will introduce new subtotals, disclosures about performance measures as well as enhanced guidance on aggregation and disaggregation for IFRS reporters. The new standard is expected to be effective from 1 January 2027. The IASB has also released a short webinar addressing the proposals in their Exposure Draft Financial Instruments with Characteristics of Equity. The IFRS Foundation has published its January 2024 monthly news summary. ESMA, the European Securities and Markets Authority, has published the latest edition of its Spotlight on the Market Newsletter. The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment (DECA) on Lack of Exchangeability (Changes to IAS 21). In August 2023, the International Accounting Standards Board published Lack of Exchangeability, which amended IAS 21 The Effect of Changes in Foreign Exchange Rates. UKEB are inviting comments on the DECA by 6 May 2024. The UKEB has issued a draft comment letter on the IASB Exposure Draft Financial Instruments with Characteristics of Equity. This is open for public comments until 8th March 2024. UKEB has also published its final comment letter in response to the IFRS Interpretations Committee’s (IFRIC) Tentative Agenda Decision: Climate-related Commitments (IAS 37). While agreeing with the overall conclusion of IFRIC, the UKEB have suggested some amendments to enhance the clarity of the technical analysis to avoid unintended consequences. EFRAG, the European Financial Reporting Advisory Group, have released their January 2024 update which summarises public technical discussions held and decisions taken during the month. EFRAG has launched a survey to seek input from various stakeholders in preparation for the IASB’s upcoming request for information on the post implementation review of IFRS 16 Leases. The FRC has published a revised version of Actuarial Standard Technical Memorandum 1 (AS TM1) which is effective from 6 April 2024.  Anti–money laundering Issue 24 of SARs in Action is out now, a special issue on UKFIU support for SAR reporters. From virtual workshops to 1-2-1 feedback sessions, the UKFIU’s Reporter Engagement Team have a variety of support options available to SAR reporters, all of which are listed inside this magazine. Also, within issue 24, find updates on the SAR Portal, changes to Companies House and read about the National Investigation Service (NATIS) investigations into the misuse of COVID business support grants. Sustainability EFRAG, the European Financial Reporting Advisory Group has released the first set of technical explanations to assist stakeholders in the implementation of the ESRS. Last year, EFRAG launched its ESRS Q&A platform to collect and answer technical questions. The platform is a useful resource for CSRD reporters and will be updated with further responses in future. EFRAG is hosting an outreach event on 20th February which will provide an overview of the two exposure drafts on sustainability reporting standards for SMEs which were released recently. Other news In a recent blog Company Bureau Formations, a company formation and corporate service practice, provided information which readers may find useful on “Understanding CRO submission rejections 10 key factors”. It provides a list of 10 key pitfalls to avoid which could otherwise lead to a CRO submission being returned including incorrect PPSN and director’s name mismatch with PPSN details. Click here to read more details on the pitfalls. UK Companies House is hosting a webinar on Thursday 22 February at 10:30am to 11am on getting ready for changes to UK company law. They will discuss the first set of changes, including new rules for registered office addresses, a requirement for all companies to supply a registered email address and new lawful purpose statements. They will also share information about future changes and an expert panel will be available to answer questions. Click here to register for the webinar. Accountancy Europe, along with a group of European Businesses, have issued a joint statement calling for the deepening of the EU single market and renewing the dynamic of European integration. The joint statement also includes some recommendations to overcome some of the obstacles identified. The Dept. Of Finance has recently (February 2024) published its Economic Insights – Spring 2024. The report provides analysis and insights on topical economic issues and developments in a collection of short notes. The Minister for Justice has recently appointed 2 new Data Protection Commissioners to replace the outgoing commissioner. The appointments will take effect from 20 February 2024, for a five-year term. The press release states that the Data Protection Commission has grown significantly in size, scope and responsibility over the last decade and following a review by the Department of Justice into how best to support this growth, the Government decided to appoint two additional Commissioners who were selected following an open competition. Read the full press release here. For further technical information and updates please visit the Technical Hub on the Institute website.                    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Chartered Accountants Ireland has today outlined a series of concrete steps aimed at making the provision of childcare across the island of Ireland work for both providers and parents, which could leave working parents up to €4,500 a year better off and free up vital working capacity in the economy. Last month, the Institute published data underscoring the challenge that the costs and availability of childcare is presenting to businesses and working parents.  Today, its paper ‘Supporting Working Parents – The case for better childcare policy’ sets out the core economic arguments for improved childcare provision as well as shining a light on the experiences of working parents seeking childcare.  Currently places for children with unregistered childminders do not attract the same National Childcare Scheme (NCS) funding for parents as creche places, which are highly limited and often difficult to secure. This means a mother-of-two on an average annual wage of €45,000, and paying €24,000 per year for childcare, is left with just €235 per week after paying taxes and childcare fees – an amount which makes returning to the workforce a difficult economic proposition. Expediting the Government’s plans to enable parents who use childminders that are not registered with Tusla to access the NCS would give parents of up to 80,000 children easier access to subsidised childcare. Commenting, Tax & Public Policy Lead, Chartered Accountants Ireland, Cróna Clohisey said  “We know what the challenges are for providers and parents and we welcome the upcoming increases to NCS subsidies. But as a mother of two young children, I’ve seen first-hand the difficulties in securing creche places, the scramble to find a childminder, and the quest to make full-time employment viable for parents. The policy tools to address these are already largely in place, so it is time to move to solutions mode. “Implementation and awareness are the two major hurdles that need to be overcome, and bolder interventions are now required if effective change is to be achieved in the childcare space. That is where we are now focusing our attention in our proposals to the Government.”  Chartered Accountants Ireland is calling on the Government to: Expedite plans to enable parents who use childminders that are not registered with Tusla, to access the National Childcare Scheme, giving parents of up to 80,000 children easier access to subsidised childcare. Streamline Core Funding. The introduction of Core Funding represented a new and different way of providing funding to the sector, but it could be greatly streamlined by: Increase funding, capital investment and grant support to the sector to more adequately reflect the true cost of providing childcare services. Importantly, these funding levels should not be static but regularly reviewed and updated in line with economic and inflationary changes. Increase awareness: engagement across the Institute’s membership has pointed to a lack of awareness of supports already in place. The Institute is calling on the government to launch an improved campaign of awareness to working parents that is integrated into and promoted by the public health system. Commenting, President of Chartered Accountants Ireland, Sinead Donovan said  “Allowing childcare challenges to persist constricts labour market capacity, narrows the tax base through lower labour market participation, and maintains the gender pay gap by making it more difficult for parents, proven to be predominantly women, to return to the workforce full time. This is a generational issue, it’s hitting men and women in different but equally real ways. “Currently, Chartered Accountants Ireland members are being asked to vote on a proposal to amalgamate with CPA Ireland which, if passed, would create the largest single accountancy body on the island of Ireland. Issues such as childcare can only truly be solved through a whole-of-government strategy, which is why a single, strong voice for the profession will be crucial in the years to come.” ENDS  Notes to editors Chartered Accountants Ireland’s paper, Supporting Working Parents – The case for better childcare policy, will be published on the Chartered Accountants website on Tuesday 13 February. Chartered Accountants Ireland members are currently being asked to vote on a proposal to amalgamate with CPA Ireland which, if passed, would create the largest single accountancy body on the island of Ireland. An online vote closes at 1pm on Wednesday 14 February with a final, in-person opportunity to vote at the Chartered Accountants Ireland SGM on Wednesday 21 February. More information on the proposal and how to vote is available on the Chartered Accountants Ireland website.

Chartered Accountants Ireland has outlined a series of concrete steps aimed at making the provision of childcare across the island of Ireland work for both providers and parents, which could leave working parents financially better off and free up vital working capacity in the economy. Our paper ‘Supporting Working Parents – The case for better childcare policy’ sets out the core economic arguments for improved childcare provision as well as shining a light on the experiences of working parents seeking childcare. 

Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has published some useful reports covering large private companies in the UK as well as a report to support companies applying the UK Corporate Governance Code 2024, which launched last month. EFRAG and IESBA have launched public consultations on sustainability standards and the European Securities and Markets Authority has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA). Read more on these and other developments that may be of interest to members below. Auditing The FRC has issued an update to the Ethical Standard for Auditors. The standard will become effective on 15 December 2024. The FRC has issued a report which highlights some of the key findings and potential actions from research it commissioned into barriers to entry and growth faced by audit firms in the UK.    Financial Reporting The Irish Auditing & Accounting Supervisory Authority (IAASA) has published a summary of the outcomes of its 2023 financial statement examinations. The European Financial Reporting Advisory Group (EFRAG) has published a Feedback Statement on its response to the International Accounting Standards Board (IASB’s) request for information on the Post-Implementation Review of IFRS 15. The Feedback Statement summarises constituent's feedback, including responses to EFRAG’s draft comment letter and explains how the feedback received was considered by EFRAG in reaching the positions reflected in their final comment letter. The IASB has issued its January 2024 update, as well as a joint update with the International Sustainability Standards Board (ISSB). Podcasts covering both of these updates have also been released by the IASB and IASB/ISSB. The IFRS Interpretations Committee has released a podcast which provides an update on its recent activities, including details of two recent discussions relating to climate-related commitments and disclosure of revenue and expenses for reporting segments. The Financial Reporting Council (FRC) has published a thematic review entitled “Reporting by the UK’s largest private companies”. This report provides details of the quality of reporting in these companies, including areas where the standard could be improved. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA), one on reverse solicitation and one on the classification of crypto-assets as financial instruments with comments requested by 29 April 2024. Anti – money laundering Would you like to know more about trust and company service providers (TCSPs)? For more information on what they are and how the Institute supervises members which provide TCSP services please click on the Technical hub anti -money laundering information where a new page dedicated to information about TCSPs has just been published. Sustainability EFRAG has launched a public consultation on the sustainability reporting standards for listed SMEs and for non-listed SMEs who wish to voluntarily report on their sustainability activities. This consultation will remain open until 21 May 2024. It is intended that the listed SME standards will be effective from 1 January 2026 (with a 2 year opt-out) while the voluntary non-listed SME standards are intended to assist SMEs in responding to requests for sustainability information that they receive from business counterparts (i.e., banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner. The International Ethics Standards Board for Accountants (IESBA) has launched two exposure drafts on ethical considerations in sustainability reporting and assurance. The Exposure Drafts cover International Ethics Standards for Sustainability Assurance as well as Using the Work of an Expert. Comments are requested by 30 April. The International Sustainability Standards Board (ISSB) has released its January 2024 podcast. Emmanuel Faber and Sue Lloyd (Chair and Vice-Chair of the Committee) discuss recent developments and their priority areas for the upcoming year. The International Federation of Accountants (IFAC’s) recent episode of “The Fast Future with IFAC” includes excerpts from a presentation to IFAC's SMP Advisory Group on topics related to sustainability. The European Environment Agency (EEA) have issued their 2024 update briefing of  ‘The costs to health and the environment from industrial air pollution in Europe’ which presents the latest assessment of the trends in externalities of industrial air pollution from over 10,000 facilities in Europe, from 2012 to 2021. These facilities report data on pollutant releases and transfers to the European Industrial Emissions Portal. The European Central Bank (ECB) has set out its focus areas for 2024 and 2025 which will guide its activities on climate change. The ECB have also set out their planned measures to address the focus areas. The European Parliament has adopted a directive which seeks to protect consumers from greenwashing and misleading marketing practices relating to environmental claims. Other news The 2018 Corporate Governance Code (the Code) was updated in January 2024 following a consultation which concentrated on a limited number of changes. The 2024 Code will apply to financial years beginning on or after 1 January 2025. The FRC has also published guidance to support companies in applying the Code. The Charity Commission of Northern Ireland has announced 31 January 2024 as the first mandatory filing deadline for 1,983 charities registered prior to May 2019. There is also a further 279 charities, registered after May 2019, which have the end of January deadline.  President of the European Commission Ursula von der Leyen has launched the Strategic Dialogue on the Future of Agriculture, a new forum mandated to shape a shared vision for the future of the EU's farming and food system. The European Commission proposes to revise the European Works Councils (EWCs) Directive to further improve social dialogue in the EU. Meaningful information and consultation of employees in key company decisions can help anticipate and manage changes like addressing labour shortages or introducing new technologies. Accountancy Europe has published a factsheet on the Carbon Border Adjustment Mechanism, which is now in enforced in the EU. The factsheet provides an overview of its main provisions. Our last edition of Roundup brought readers some information about the UK’s Economic Crime and Corporate Transparency Act which received royal assent on 26 October 2023. We included a link to an Institute information guide outlining some of the changes which may be of interest to members. In this week’s edition we report that the first changes to UK company law are expected on 4 March Companies House writes that it is aiming to introduce the first set of measures under the Economic Crime and Corporate Transparency Act on that date. Click here for a summary of what changes are expected and how you can sign up for e mail newsletters from Companies House. A new study published by Skillnet Ireland and IDA Ireland has highlighted the need to upskill non-IT employees with key digital and data skills as this has become a requirement for all businesses in order to ensure our companies have a strong talent pipeline capable of adapting to the changing demands of digitalisation. Spring 2024 Legislative Programme The Irish Government recently published its legislative programme for Spring 2024. The link to the press release and the contents of the programme were included in our last edition and below are some of the items in draft legislation which might be relevant to members. An interesting one is the Access to Cash Bill. This Bill is listed for priority drafting. Its aim is to preserve access to cash. The Bill will also look at the resilience of the cash system and the manner in which cash travels around the system in Ireland. This involves two main elements – the regulation of ATM operators and the regulation of Cash in Transit companies. Since the publication of the legislative programme the Government has published the general scheme of the Access to Cash Bill and you can find more details of the general scheme here. Since the Autumn legislative programme in October 2023 the Digital Services Bill and the Charities (Amendment) Bill were initiated and are working their way through the legislative process. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill is still listed as heads in preparation and is on the priority drafting section. The Co-operative Societies Bill and the Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023 are still in preparation. Heads are in preparation for a National Cyber Security Bill and work is underway on an EU Data Bill which is to give effect to the EU Data Act. This is an EU regulation, but the Department of Enterprise, Trade and Employment has been advised that primary legislation is needed to enact it. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

30 January 2024 – The Irish accountancy profession - comprising the accountancy sector, as well as accountants working across the wider economy - made a €19.8 billion contribution to the Irish economy in 2022, a new report published today by Oxford Economics for the Consultative Committee of Accountancy Bodies (CCAB), has revealed. The report further found that the profession supported over 83,000 jobs in Ireland and generated €1.8 billion in tax revenues in 2022. The profession’s contribution to the Irish economy has increased by 53% since this report was last compiled in 2017.  The profession in the UK and Ireland made a combined €114 billion contribution to the UK and Irish economies in 2022, supporting almost 1 million jobs, and generating €13.7 billion in tax revenues.  Expenditure on external accounting services by businesses in Ireland reached €3.4 billion, and almost £30 billion (£29.3 billion) in the UK in 2022. In both markets, the report estimated that the IT sector was the largest purchaser of accounting services in that year. The same year, the UK also exported £4 billion in accounting services, increasing its share of total UK service exports since 2016 by 0.3% percentage points, despite the changed trading landscape post-Brexit. CCAB said the findings highlight the key role the profession has played supporting businesses over the past five years, helping them to navigate the impacts of the Covid-19 pandemic, Brexit and geo-political crises like the war in Ukraine, as well as the transition to a green economy and new technology.  Julia Penny, CCAB Chair, said  “The significant contributions highlighted in this report underline the value of the accountancy profession to the prosperity of the UK and Ireland.  Accountants are playing a key role in driving economic growth: helping millions of businesses to navigate global challenges and opportunities, as well as leading schemes to boost social mobility and access to the profession.  “It’s not surprising to see that contributions have grown during the past five years given the impact of the pandemic and cost of doing business crisis. Demand for our knowledge and skills remains strong, in part thanks to our expanding roles in dealing with a range of non-financial information. I expect accountants to retain a central role as the profession evolves to further help businesses adapt to the climate emergency and technological advances, issues on which our future economic success and stability depend.” Barry Doyle, Deputy President, Chartered Accountants Ireland said “The figures published today illustrate just how fundamental the accountancy profession is to Ireland’s economic prosperity, something that can be too easy to overlook. It is very encouraging to see both the continued strong growth in demand for the services of the profession, and the extraordinary growth in the scale of the economic contribution to the Irish economy, up 53% since 2017.  “Behind the headline figures are over 83,000 individuals employed by the accountancy profession in Ireland, driving and servicing FDI and Irish business of all sizes and in every single sector of the economy. Accountants play a role in almost every aspect of our economy and society.” Stephen Noonan, Head of ACCA Ireland said “This report highlights the crucial role that the accountancy profession plays in creating a dynamic economy, providing the skillset that supports inward investment, the growth of exports and thriving businesses that create employment across the country. “As the Irish economy evolves and develops in the months and years ahead, with the growth of the renewable and digital economies, the profession will play a key role in supporting business and organisations adapt and grow to a changing environment. To support that, it is incumbent on both the private and public sector to work in partnership to ensure that we retain and recruit the skillset required which will support long term prosperity.”  The report assesses both the economic and wider social impact of the profession to the UK and Ireland, with quantitative analysis supplemented by case studies which provide a snapshot of the positive contributions that accountants are making in the areas of diversity and inclusion; skills; and sustainability.   CCAB is an umbrella organisation for the UK and Ireland’s leading accountancy bodies - ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland.  Membership of CCAB bodies has grown by 14% since 2017, and these bodies reported more than half a million students registered globally during 2022. Read the full report to discover the breadth of the accountancy profession’s impact and CCAB’s commitment to driving sustainable growth among the organisations, economies, and communities it serves.  ENDS 

Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party. Following feedback to their consultation, the FRC have amended the proposals to ensure that the requirements in the standard are better targeted and proportionate. For example, additional requirements in respect of ethical breach reporting by audit firms to the regulator have been removed. With regard to tax services provided to the controlling shareholders of unlisted companies the FRC is enhancing the independence risk assessment around these services rather than specifically prohibiting them. Alongside the revised Ethical Standard, the FRC has also released guidance for auditors on the application of the Objective, Reasonable and Informed Third Party test, which forms a key part of many requirements in the Ethical Standard. Read the updated Ethical Standard. Read the feedback statement and impact statement. CAI responded to the FRC consultation and you can read our response here.  

Increase of accounting talent in 2–3-year Post Qualified Experience range expected in coming 18 months as professionals return from abroad Qualification now used far more widely outside traditional roles; soft skills increasingly important in profession Chartered Accountants Ireland and Barden announce new partnership to support next generation of students and members   29 January 2024 – The demand for qualified accountants is predicted to reach 10% above pre-pandemic levels in 2024, according to talent advisory and recruitment firm Barden. They also expect an increase in the supply of accounting talent in the 2–3-year PQE range in the coming 18 months, which should alleviate some of the pressure on companies trying to hire at this level.  Commenting Elaine Brady, Managing Partner, Barden Leinster said “Demand for talent is strong locally, and compounding this, the past two years have seen over a 30% increase in newly qualified accountant talent moving internationally after qualifying. An injection of highly qualified talent in the coming months will come as a relief to those hiring. The first five years PQE are a pivotal time for accounting professionals - those that are career orientated should expect to move role, internally or externally, between 2-3 times during this formative period. It’s a competitive space.  “Our data shows us that PQE level and salary level are becoming increasingly disconnected after the 3-year PQE mark - many more variables come into play, and it is no longer about PQE but about the ability to create value for a business outside of the accounting function.”  Chartered Accountants Ireland and Barden have today announced a renewed three-year strategic partnership building and expanding on an existing strong partnership between the two organisations. The partnership is focused on three programmes, the Chartered Accountants Student Society of Ireland (CASSI), Chartered Accountants Ireland Leinster Society and Young Professionals, which have a particularly strong focus on the Institute’s strategic priority of engaging the next generation of students and members. The partnership will build opportunities for connectivity, engagement and belonging in the chartered community.  Commenting Sinead Donovan, President Chartered Accountants Ireland said  “This partnership comes at a time when people skills are becoming increasingly important within the accounting profession, and equally the role that accountants play and the value they create is much wider. For those working in business, many more are having an impact in operational and leadership roles, and in emerging areas such as data analytics and ESG functions. Increasingly Chartered Accountants are using their qualifications to create value outside of the accounting function.  “As a body, it is incumbent on us to ensure that our members are equipped for the expanding remit of our profession. Recruitment data shows that 64% of career opportunity come from your direct network - those you trained with, and those you have worked with, so the importance and direct impact on business growth of the Chartered Accountants member networks cannot be overstated.”  Elaine Brady, Managing Partner, Barden Leinster continued "This strategic partnership between Barden and Chartered Accountants Ireland is the culmination of over a decade of engagement between our two organisations - partnerships of this significance and scale don't just happen overnight.  We're delighted to have built the trust to now support Chartered members from their training through to qualification and through their formative PQE years. Helping people make informed decisions about their future, and enabling those decisions, is what we are all about in Barden; this partnership enables us to be there along each critical step with members as they chart the unknown waters of the future of work.” ENDS  

Welcome to this week’s Technical Roundup. In developments this week, the European Financial Reporting Advisory Group (EFRAG) has announced that it has completed its due process regarding amendments to IAS 21, the Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability and has submitted its Endorsement Advice Letter to the European Commission.  The European Banking Authority has extended its AML/CFT guidelines to crypto-asset service providers (CASPs). The new guide highlights risk factors and mitigating measures CASPs must consider. Read more on these and other developments that may be of interest to members below. Auditing IAASA Consultation on ISA (Ireland) 505 IAASA has published a Consultation paper seeking views on their proposed revisions to International Standard on Auditing (ISA) (Ireland) 505 External Confirmations with related conforming amendments to ISA (Ireland) 600 (Revised February 2023) Special Considerations – Audits of Group Financial Statements (Including the Work of Component Auditors). The proposed effective date of the revised standard is for audits of financial statements for periods beginning on or after 15 December 2024. Responses are requested by Friday 23 February 2024. The consultation paper and proposed revised standard can be found here along with the proposed conforming amendments and a response template. IAASB Consultation on publicly traded and public interest entities definitions The IAASB has launched a consultation process on proposed narrow scope amendments to ISQMs, ISAs AND ISRE 2400 (REVISED) to achieve greater convergence with the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (Including Independence Standards). These proposed revisions have two key objectives: align definitions and requirements in IAASB standards with new definitions in the IESBA Code. the amendments would extend the applicability of existing differential requirements for listed entities to meet heightened stakeholder expectations regarding audits of public interest entities (PIE). Key proposed revisions include extending the scope of the entities included under the International Standards on Quality Management and the International Standards on Auditing such that they will be subject to: Engagement quality reviews; providing transparency in the auditor’s report on specific aspects of the audit, including auditor independence, communicating key audit matters, and the engagement partner’s name; and communicating with those charged with governance to help them fulfil their responsibility overseeing the financial reporting process. Responses are requested by 8 April and the documents can be accessed here. Financial Reporting EFRAG, the European Financial Reporting Advisory Group, has published its December 2023 update which summarises public technical discussions held and decisions taken during the month. EFRAG has announced that it has completed its due process regarding amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability, and has submitted its Endorsement Advice Letter to the European Commission. EFRAG has published its draft comment letter on the International Accounting Standards Board’s (IASB) Exposure Draft ED/2023/5 Financial Instruments with Characteristics of Equity (Proposed amendments to IAS 32, IFRS 7 and IAS 1). Comments are welcomed by EFRAG by 20 March 2024. ESMA, the European Securities and Markets Authority, has published the latest edition of its newsletter. Anti – money laundering 10 January 2024 saw the commencement of the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 (Amending Regulations), which were laid in mid-December and provide for changes to the enhanced due diligence (EDD) requirements in relation to so-called domestic PEPs (i.e. a politically exposed person entrusted with prominent public functions by the UK).  The Economic Crime and Corporate Transparency Act (ECCTA) received royal assent on 26 October 2023. It includes a new much-debated failure to prevent fraud offences and new enhanced powers for UK Companies House bringing changes to the way it will conduct its business. Few of the provisions will apply immediately with secondary legislation and system development within Companies House required for many of the provisions. The Institute has produced a brochure outlining some of the changes which may be of interest to members which can be accessed here. One of the intentions of the ECCTA is to improve the accuracy and quality of the data of the registers of Companies House and to help tackle economic crime and drive confidence in the UK economy. Companies House have published a summary of steps that will be taken to  improve Companies House data and also outlines a new identity verification process that will be operational later in 2024. One of what the Serious Fraud Office in the UK describes as key provisions of the ECCTA came into force on 15 January 2024 with the extension of the Serious Fraud Office’s section 2A ‘pre-investigation’ powers. Prior to the extension the SFO writes (in a social media newsletter) that it could under section 2A obtain information from companies or individuals to support its intelligence work and to help determine whether to open an investigation.  From the 15 January SFO notes it has these powers across every intel operation - including fraud.  This means it can now obtain data such as banking records before a formal investigation even begins, which will also allow them to restrain assets more quickly where they identify they could be at risk - helping to speed up the early investigative stage of their cases and better protect victims’ money. Sustainability The IFRS Foundation and Global Reporting Initiative have published a summary of interoperability considerations for greenhouse gas (GHG) emissions. This illustrates the areas of interoperability a company should consider when measuring and disclosing Scope 1, Scope 2 and Scope 3 GHG emissions in accordance with both GRI 305: Emissions and IFRS S2 Climate-related Disclosures. IFAC, The International Federation of Accountants, has published “A Literature Review of Competencies, Educational Strategies, and Challenges for Sustainability Reporting and Assurance”. This report discusses the new and existing competencies required of accountants to meet the sustainability-related disclosure, reporting and assurance challenges faced by stakeholders. Other news The Government recently approved guidance on the use of AI in the Public Service, brought to Cabinet in the wake of agreement on a new European AI Act reached between the European Parliament and the Council.  The Government has instructed that all AI tools used by the Irish Public Service should comply with seven requirements for ethical AI that have been developed by the European Commission’s High Level Expert Group. The European Banking Authority’s latest AML/CFT Newsletter is out. Take a look for the latest on consultations, new guidelines, risks and the EBA's work on tackling financial crime. The European Banking Authority has extended its AML/CFT guidelines to crypto-asset service providers (CASPs). The new guide highlights risk factors and mitigating measures CASPs must consider. The Government Chief Whip, Minister Naughton, has published the Spring 2024 legislative programme with 46 priority bills due for progression. The AI Advisory Council, established by Minister of State with responsibility for Digital, Dara Calleary TD, to provide independent expert advice to government on artificial intelligence policy, met for the first time on 17 January. The Council will provide independent expert advice to government on artificial intelligence policy, with a specific focus on building public trust and promoting the development of trustworthy, person-centred AI. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Revenue has updated the Tax and Duty Manual for returns by employers in relation to reportable benefits under the Enhanced Reporting Requirements (ERR) which came into effect on 1 January 2024.   The updated guidance contains information about the service for compliance approach to be taken by Revenue to support businesses with the regime until 30 June 2024 as set out in a press release. During this time, Revenue will not be operating any compliance programmes in relation to the ERR and will not seek to apply any penalties for non-compliance.   The revised guidance also prescribes the reporting period, the form, and other particulars or documents that will apply in regard to reportable benefits. 

Childcare reform key to greater female participation in workforce: two-thirds of members pay up to €2,000/ month for childcare Workers need certainty in tax system to reflect hybrid working norms and bring an end to pandemic experimentation period.    5 January 2024 – Stronger government action to improve childcare costs and availability would boost capacity in the workforce, according to a new policy paper published today by Chartered Accountants Ireland. The Next Financial Year: Building Capacity is the first of several policy papers that the Institute will publish this year on priority areas identified by Institute members which would support the economy.  The Institute is the largest and longest-established professional accountancy body on the island of Ireland.  It has 33,000 members, two-thirds of whom work in business. Published as an open letter to policymakers and legislators, the policy paper sets out recommendations on how Government can build capacity in the economy by: Enabling greater female participation in the workforce through targeted childcare reforms  Easing cost pressures for developers & landlords to stimulate housing supply  Giving certainty to workers on place of work & commuter costs in the tax system  Building digital capabilities & resilience for businesses to succeed  Childcare reform can unlock economic contribution of female professionals Institute members identified the steep cost and lack of availability of childcare as the biggest challenge facing working parents in the profession today, with two thirds of members currently paying up to €2,000 per month in childcare costs, and 16%, mostly female members, having to reduce their working hours to care for a child. Chartered Accountants Ireland highlights solutions available to Government to increase female labour market participation such as: Increased funding, capital investment and grant support to the sector to better match the cost of providing childcare services, to meet surging demand for places & to encourage providers to grow. Reform of National Childcare Subsidies (NCS) to encourage childminders to register with Tusla, giving parents of up to 80,000 children easier access to subsidised childcare. Sinead Donovan, President of Chartered Accountants Ireland, said: “For too long, policymakers have framed childcare policy as a social issue, not an economic one. Our evidence shows that affordable, quality childcare drives more sustainable, inclusive economic growth and competitiveness. Government’s ambition to tackle the provision of childcare is welcome for businesses in today’s tight labour market. Paving the way for greater female participation in the workforce should be a priority for policymakers in 2024.”  On housing, the policy paper identifies specific measures to ease cost pressures for developers and landlords to stimulate supply, including: A deferral of PAYE and VAT payments for developers and builders on salary, material, and other costs incurred during construction, to be payable as the units are sold. This would reduce development costs, ease cash-flow concerns and make investment more appealing.  Further encouraging private landlords to remain or move into the Irish market through the taxation system. Allowing Local Property Tax as a deduction against rental income and allowing non-resident landlords to collect rents directly from tenants, rather than through Revenue or a collection agent, could provide such an incentive. In the workplace, giving certainty to workers on how their place of work and commuter costs are to be treated in the tax system would put Ireland’s employment environment on a more progressive footing, and bring to an end the pandemic experimentation period. Measures proposed include:   Introducing a more flexible version of the TaxSaver Commuter Ticket Scheme, to offer tax relief on season tickets to commuters who only use public transport 2-3 days a week, reflecting new norms around hybrid working, while promoting public transport use.  Rules to establish a normal place of work, fundamental to the tax treatment of employee travel and subsistence reimbursements, should be updated to reflect the changed circumstances that hybrid working has created.  Digital skills are essential to meet current and future workforce needs. Building digital capabilities & resilience for businesses to succeed requires Government to do more to meet its target of 80% of adults having at least basic digital skills by 2030. The Institute recommends that the digital transformation of education and training focuses on schools, equipping children with the skills needed for the jobs of the future, underpinned by the Digital Strategy for Schools to 2027. Dr Brian Keegan, Director of Public Policy for Chartered Accountants Ireland, said: “In Building Capacity, Chartered Accountants Ireland has put forward practical recommendations to help our economy thrive. Our members have once again provided vital insights into the major societal and economic challenges that both businesses and employees are facing. Our recommendations reflect their experiences and realities.  “We welcome Government engagement with many of our policy proposals in the last year, but more needs to be done. Building capacity in our economy does not stop at the bricks and mortar of much-needed housing supply. It must include targeted measures that actively facilitate women who want to work, and reflect the reality of a more dispersed, and digital-first workplace if businesses are to succeed long-term. It is within Government’s gift to put in place measures to increase economic capacity across the board, and futureproof jobs for generations to come.” ENDS

Welcome to this edition of Technical Roundup. In recent developments, the Dept of Enterprise, Trade and Employment has published the Digital Services Bill 2023 which will provide for the full implementation in Ireland of the EU Regulation on a Single Market for Digital Services and the International Auditing and Assurance Board issued the new International Standard for the Audits of Less Complex Entities on 6 December 2023. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has issued FRED 85 Draft amendments to FRS 101 Reduced Disclosure Framework – 2023/24 cycle. Every year, the FRC carry out a review of the FRS 101 standard to consider amendments made by the International Accounting Standards Board (IASB) to their standards, and whether such changes should result in an amendment to FRS 101. In FRED 85, the FRC are proposing minor changes to FRS 101 to ensure consistency with IAS 1 Presentation of Financial Statements. The FRC has published an insight report “Structured digital reporting – 2023 insights” which highlights some areas for focus for companies when producing their annual financial report in a structured digital format under FCA Rules. This includes some examples of best practice in the areas of tagging, usability & design and process. The FRC has issued version 2.0 of Technical Actuarial Standard 300: Pensions (TAS 300). The IFRS Foundation has released its November 2023 monthly news summary, which summarises their news items and events during the month. The IFRS Interpretations Committee (IFRIC) has issued its November 2023 update which summarises decisions made by the Committee in its public meetings. This includes details of some tentative agenda decisions on climate-related commitments under IAS 37 and disclosure of revenues and expenses for reportable segments under IFRS 8. The International Accounting Standards Board (IASB) has published a summary of its project on extractive activities which considered whether to amend or replace IFRS 6 Exploration for and Evaluation of Mineral Resources. The IASB has published a webcast which provides some insight into the forthcoming IFRS Accounting Standard for Subsidiaries. The standard is expected to be issued in the first half of 2024. EFRAG, the European Financial Reporting Advisory Group, has published its final comment letter in response to the IASB’s Exposure Draft- Annual Improvements – Volume 11. The UK Endorsement Board has also published its comment letter and feedback statement on the Exposure Draft. EFRAG has published its November 2023 update which summarises public technical discussions held and decisions taken during the month. The Pillar Two tax rules that will apply to companies with consolidated revenue over €750m are contained in the Finance No2 Bill that is making its way through the Oireachtas. In relation to the financial reporting implications of the Pillar Two tax rules, IAS 12 Revised and FRS 102/101 revised now set out financial reporting disclosure requirements for those companies. Assurance and Auditing The Financial Reporting Council (FRC) has published its annual inspection findings for Tier 2 and Tier 3 audit firms and a number require ‘significant improvement’. The findings outline that of the audits reviewed, 38% required only limited improvements, 24% required more than limited improvements and a further 38% required significant improvements. The FRC identified deficiencies in the audit of judgements and estimates, and going concern, both of which require audit teams to demonstrate robust professional scepticism. Firms must demonstrate improvement including investing in their audit methodology, human resources and audit quality functions, learning from things that went wrong or went well, and seeking to embed a culture that recognises and prioritises audit quality. The FRC is taking a number of actions to improve resilience and competition in the PIE audit market. The FRC has announced their areas of focus for 2024/25. The includes priority sectors are: Construction and Materials Food Producers Gas, Water & Multi-utilities Industrial Metals and Mining Retail These are for both corporate reporting reviews and audit quality inspections. ISA for LCE Following approval at their September 2023 meeting, the IAASB issued the new International Standard for the Audits of Less Complex Entities on 6 December 2023. Where it is adopted, or permitted, the standard is effective for audits of financial statements for periods beginning on or after December 15, 2025, (i.e. 2026 calendar year audits) with early adoption being permitted and encouraged. The standard has not yet been adopted for use in Ireland or the UK. The standard can be downloaded from the IAASB website. Sustainability The International Sustainability Standards Board (ISSB) have been providing updates on their activities at COP 28. These include; Their planned future cooperation with the International Organization for Standardisation towards effective communication about sustainability-related risks and opportunities. Details of the growing number of Organisations and jurisdictions who have committed to advancing the adoption or use of the ISSB’s climate-related reporting at a global level. An announcement that Emmanuel Faber will continue as ISSB chair until the end of 2027. Details of the progress made in advancing global sustainability disclosures since the establishment if the ISSB was announced at COP 26. The International Sustainability Standards Board has provided details of some new and updated resources coming into effect on 1 January 2024. These are intended to help companies apply the ISSB Standards IFRS S1 and IFRS S2. The IFRS Foundation has launched the IFRS Sustainability Knowledge Hub which seeks to support users of the ISSB standards. This is intended to help auditors, investors, regulators and stakeholders as they begin their reporting journey under the ISSB standards. IFAC have announced plans to revise the International Education Standards to bring greater focus to sustainability reporting and assurance, given the evolving role of accountants in the area of sustainability. Sanctions/Anti-money laundering The UK’s National Crime Agency and National Economic Crime Centre have issued an alert to financial institutions and other members of the UK regulated sector warning that Russia is trying to procure UK sanctioned goods through intermediary countries.  Sanctions imposed on Russia as a result of its invasion of Ukraine have had a significant impact on its ability to purchase products, including military supplies, on international markets. The alert provides information to UK businesses on common techniques suspected to be in use to evade sanctions on the export of high-risk goods, which Russia is using on the battlefield in Ukraine. The European Council and Parliament have reached a provisional agreement on creating a new European authority for countering money laundering and financing of terrorism (AMLA) - the centrepiece of the anti-money laundering package, which aims to protect EU citizens and the EU's financial system against money laundering and terrorist financing. Other News The Credit Union (Amendment) Bill 2022 has recently been sent to the President for signature. Click here for a government press release where the Minister for Financial Services, Insurance and Credit Unions welcomed the proposed amendments to the legislation which she said aim to bring about significant reforms for the credit unions sector in Ireland and represents a very significant piece of legislation that will have far-reaching positive implications for the credit union sector in the years to come. In other credit union news, the Central Bank of Ireland has issued their December Credit Union News publication which includes a reminder to all credit unions on key financial  considerations and other matters for consideration at year end including impairment reviews of assets, liquidity management, systems of control, cybersecurity and operational resilience (including outsourcing) and Lending Framework Review with an expectation of publishing analysis of the review in H1,2024. The Dept of Enterprise Trade and Employment recently published  the Digital Services Bill 2023, which will provide for the full implementation in Ireland of the EU Regulation on a Single Market for Digital Services. Click here for a press release giving more details on the Bill and the EU Regulation commonly referred to as  the Digital Services Act. The EU Regulation establishes a pioneering regulatory framework to protect EU users of digital services and their fundamental rights online. The press release notes that the Irish Digital Services Bill is a technical bill, drafted to address specific obligations on Member States of the EU to give effect to the supervision and enforcement provisions of the EU Regulation. The Bill does not add to or amend the obligations on online platforms under the EU Regulation. Those obligations have direct legal effect in all Member States of the EU and do not require any implementing measures in national law. In its recent publication, IFAC’s Professional Accountants in Business group discuss how accountants are leading and driving sustainability and digital transformation agendas. Some areas discussed in this article include; The accountancy profession’s role in driving higher-quality, decision-useful sustainability-related information The use of AI in transitioning businesses and the nature of work Strategies for nurturing future leaders For further technical information and updates please visit the Technical Hub on the Institute website.                                ~          Happy Christmas        ~