Representatives from the Institute, under the auspices of the CCAB-I, met with the Minister for Finance, Michael McGrath T.D and his team earlier this week to discuss CCAB-I’s pre-Budget 2024 submission. The need to simplify the tax system and reduce the administrative burden on businesses was discussed, as were the complexities experienced by small businesses, in particular, when availing of several of the business tax reliefs. The importance of long-term investment in critical infrastructure, not least housing, in order to maintain Ireland’s position as a competitive place to do businesses and also to retain and attract talent was also highlighted.  

Following its recent consultation on the proposed amendments to FRS 101 and FRS 102 relating to the OECD's Pillar Two model rules, the FRC has now issued amendments to FRS 101 and FRS 102. The amendments introduce a temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules, alongside targeted disclosure requirements. The temporary exception is effective immediately and the disclosure requirements are effective for accounting periods beginning on or after 1 January 2023, with early application permitted. A small number of FRS 102 preparers are likely to be impacted by the Pillar Two model rules and the changes are based on a similar amendment to IAS 12 issued in May by the International Accounting Standards Board.

9 July 2023 – The success of future generations must be prioritised over short-term measures in Budget 2024, to ensure economic and societal progress in the decades to come. This is according to the Consultative Committee of Accountancy Bodies-Ireland (CCAB-I), the umbrella group which represents over 50,000 professional accountants, as it published its Pre-Budget Submission today.   The submission, entitled ‘Supporting Ireland’s Transition to a Sustainable future’, prioritises the long-term, highlighting that while the Irish economy has doubled in size in the past decade, we still have significant shortfalls in healthcare, housing, transport infrastructure and education. Demographics are exacerbating these shortfalls.  The submission identifies two key areas for budgetary focus;  The introduction of an intermediate 30% rate of income tax to reduce the tax burden on younger workers; and Investment in housing capacity to accommodate our young workforce and our significant FDI community. Commenting, Tax and Public Policy Lead at Chartered Accountants Ireland, Cróna Clohisey said:  “In the absence of a long-term focus, we risk an intergenerational divide becoming a chasm. The half-year Exchequer returns of €41bn published this week highlight more than ever the difficult decisions government faces in Budget 2024. This sum represents an 11% increase on the same period last year, but it is now, when the Exchequer is relatively robust, that government should limit itself to modest budgetary tax adjustments and put real spending power behind sustained investment in infrastructure, particularly housing.  “Our economic position is strong, but it is not future-proofed. There is a real divide between generations in terms of access to housing, pensions security and many other indicators. We need Ireland to be a country our young people choose to stay in and that others choose to bring their skills to, but we cannot do that without long term, strategic interventions in transport, health, and housing.”  Reforming the income tax system  Ireland’s 40% tax rate is high in comparison to other competitor countries and the CCAB-I believes that introducing a third rate of income tax of 30% would make the system more equitable. It would also enhance Ireland’s attractiveness as a place to work, particularly among younger workers.   Ms Clohisey continues: “Workers in Ireland pay income tax at a rate of 40% once they earn €40,000. This entry point is below the average wage and is significantly lower than most countries across the UK and Europe where incidentally having more than two tax rates is extremely common.” “Speaking on behalf of a mobile profession where most are in the early stages of their careers and are planning their futures, introducing an intermediate 30% rate would make the system more attractive and more equitable, lessening the tax burden on workers and putting more money in their pockets. An intermediate rate would also support Ireland’s FDI offering. The government needs to take immediate action to address the inequities that clearly exist within the system.” The submission also proposes: Income tax credits and rate bands should be index-linked to earnings to account for inflation Employers’ PRSI should not be increased The rate of CGT and CAT should be reduced from 33% to 20% The CGT annual exempt amount should be increased from €1,270 to €5,000  The Category A threshold for CAT should be increased from €335,000 to €350,000  The CAT small gift exemption should be increased from €3,000 to €5,000. Housing measures The CCAB-I believes that small private landlords are critical in boosting Ireland’s housing supply, particularly in provincial towns where demand is not sufficient to justify large-scale investment in the private rental sector.  Ms Clohisey continues: “Our members tell us that one of the biggest barriers to expansion is the lack of adequate, affordable housing that is reasonably located for their staff. We do our young people an enormous disservice by limiting their opportunities to live and work where they want to.” “The tax burden of small private landlords should be the same as that for companies at the 25% rate, rather than at the marginal rate of 52%. On the supply side, to enable property developers to manage their cash-flow, a tax debt warehousing system, like that created during the pandemic, could be developed whereby the collection of taxes such as PAYE is delayed until all housing units have been sold.” The submission also proposes: Local property tax should be allowed as a deduction against rental income Wear and tear rates for fixture and fittings should be increased from 12.5% to 25% per annum to facilitate landlords investing in the maintenance of properties Where landlords retrofit a property to improve its energy rating, 100% capital allowances should be offered in the year of work ‘Rent-A-Room’ relief should be increased to match the standardised average rent and the ‘cliff-edge’ for qualifying for relief should be removed. The Rent Tax Credit should be permanently included in legislation. ENDS Issued by Chartered Accountants Ireland on behalf of the Consultative Committee of Accountancy Bodies-Ireland (CCAB-I). Read the submission in full here.  About the Consultative Committee of Accountancy Bodies-Ireland (CCAB-I) The Consultative Committee of Accountancy Bodies-Ireland is the representative committee for the main accountancy bodies in Ireland. It comprises Chartered Accountants Ireland, the Association of Chartered Certified Accountants, the Institute of Certified Public Accountants in Ireland, and the Chartered Institute of Management Accountants which combine to represent over 50,000 professional regulated accountants in Ireland.              

The Young Professionals Committee elected Brendan Brophy as the chairperson at the AGM on Thursday 6 July. Brendan was elected alongside Niamh McCarthy as Vice chair for the 2023 / 2024 term. We sat down with Brendan to learn more about him and his plans for the 2023 / 2024 term. While I am often referred to as the ‘Australian’ among my Irish friends, I personally identify as blend of Australian and Irish, and I am a proud dual citizen. My parents emigrated to Australia from Belfast during the height of the Troubles, meaning I have Irish and Australian citizenship, and I was raised with a deep appreciation and love for both cultures. I qualified as an Australian Chartered Accountant in 2016 through Chartered Accountants Australia & New Zealand (CAANZ). After gaining valuable experience as an accountant and tax professional in Australia, I decided to embark on a new journey and relocate to Dublin in mid-2017. I was able to obtain membership with Chartered Accountants Ireland through the reciprocal agreement between the two bodies. I had four years of valuable tax experience in Australia, but when I landed in Ireland, I quickly realised that Australian tax regulations and expertise was not as highly sought after in the local market. I subsequently transitioned into diverse financial management and reporting roles and currently work as a Cost Accountant at Square. Not long after my move to Dublin, I recall receiving an email from Chartered Accountants Ireland promoting an event organised by the Young Professionals Committee. Intrigued by the prospect of networking and connecting with fellow young professionals, I rallied a few of my co-workers to attend the event and the rest is history! Little did I know at the time that this would mark the beginning of my involvement with the committee. I am honoured to be elected as Chairperson of the Committee and look forward to a great year ahead. This year my primary goal is to prioritise the establishment and nurturing of meaningful connections. While attending exceptional events with notable speakers and engaging entertainment can be valuable, I believe the true significance lies in sharing those experiences with others. As young professionals, we play a pivotal role in bridging the gap between senior management and junior staff, fostering connections and collaboration within the organisation. Furthermore, it is essential to maintain a strong connection with the Institute and the great resources such as CA Support and Thrive that our available to all members. I would like to take this opportunity to congratulate Peter Gillen on a fantastic year as chairperson of the Young Professionals Committee. Special thanks to my fellow committee members, as well as Institute staff Karin Lanigan and Linda McGee who work tirelessly behind the scenes to support all our initiatives.  I look forward to the year ahead and hope that many young professionals will join us virtually and in person at our upcoming events. Keep an eye on our LinkedIn and Instagram accounts to hear the latest developments. Brendan Brophy  Brendan Brophy on LinkedIn Visit the Young Professionals homepage  

In every issue of The Bottom Line, we ask students for their thoughts on a particular topic. This month, we want to know: what are your thoughts on Irish neutrality? Karen Chandrakanth PwC Ireland’s policy of military neutrality has long been an important strand of Ireland’s independent foreign policy.  'Change' does not necessarily mean drastic; it can also mean to evolve – joining NATO is not the only option that confronts us.  We must also consider strengthening what we have and evolving our stance to further develop cyber, airspace and naval defences.  For every decision made regarding our neutrality and defences, there will be two sides to the argument. Whichever way we fall, our decisions must have an  impact for the better.  Change can happen in phases, but drastic or lack of change should not be an option. Sarah Byrne Browne RBK Chartered Accountants Ireland's neutrality has been questioned many times over the years, especially in recent times. I think we also need to question: has Ireland's neutrality been slowly eroded? For example, our governments have been encouraged to let America and other European countries use Shannon Airport as a stopover on their way to the Middle East. Our army also has peacekeepers in Africa. If this is a permanent arrangement, could our island be seen as a threat, and are we opening ourselves up to possible attacks from other countries with a grievance against the US or NATO?  Going forward, should Ireland have more safeguards in place? More and more nowadays countries are victims of cyber-attacks; how ready are we for these?  We remain neutral, so there wouldn’t be too much of a threat regarding the above but it begs the question of how we keep our neutrality whilst also trying to help others. Clodagh Murphy PwC Irish neutrality is a phrase which has been frequenting headlines in recent times.  Due to international events, most prominently the war in Ukraine, many have questioned  if Ireland’s neutral stance is still the best way forward.  This past June we watched with interest as a group of experts discussed this topic at the Consultative Forum on International Security.  A potential change to the current ‘triple lock’ process is an interesting development which has the potential to alter Ireland’s current peacekeeping abilities.  While discussions are still in the early stages, any policy change in this area has the potential to alter Ireland’s relationship with foreign powers. I will be following this story closely over the upcoming weeks and months!

Revenue has issued a warning of a scam SMS (text message) purporting to come from Revenue seeking personal information from taxpayers in connection with a tax refund or seeking debit/credit card details. The Revenue Commissioners never send emails or text messages requiring customers to send personal information via email, text or pop-up windows. Further information is available here.

Last week, we posted an update on the new R&D tax credit filing requirements, including the specified return. To the extent it was not clear how the new forms will apply, it was confirmed at the recent R&D Discussion Group that the new Specified Return will need to be completed and returned via MyEnquiries along with the Form CT1 2022 where: An acceleration of the second and third instalment is claimed in accordance with section 766(4D) or 766A(4C) TCA 1997 A R&D tax credit is claimed in accordance with section 766C TCA 1997 A R&D tax credit is claimed in accordance with 766D TCA 1997. As mentioned last week, the Form CT1 2023 is expected by 10 July and will include sections reflecting the updates to the R&D tax credit.

Ireland’s urban growth demands sustainable development. As we transition to a green future, our focus must be on modernising regulations, energy resilience, R&D and public-private partnerships, says Robert Costello Ireland’s urbanisation has been rapid: in 1969, half of the population lived in rural areas, and urbanisation is expected to reach 75 percent by 2050. In recent decades, urbanisation combined with general population growth and an economic boom has dramatically increased the footprint of Ireland’s cities. Much of this growth occurred without due regard for sustainable development. As Ireland sets out on a green transition, we must focus on making our cities sustainable. Like the broader economy, Ireland’s cities run largely on fossil fuels. According to the United Nations, cities consume about 78 percent of the world’s energy, accounting for more than 60 percent of greenhouse gas emissions. Transport accounts for almost 18 percent of total emissions in Ireland, and nearly all (94 percent) of these emissions come from road transport. Ireland has among the longest commute times in Europe, with many commuting into and around cities. Ireland’s buildings are among the hardest to heat in Europe, with heat loss rates (U-values) three times those of Sweden. With poor heat retention and a relatively high reliance on solid fuels and oil, Irish buildings have the highest emissions in Europe. Net zero emissions commitments of Ireland and the EU The European Union is committed to achieving a 55 percent reduction in greenhouse gas emissions by 2030 and net zero emissions by 2050. Ireland has committed to reducing emissions by 50 percent by 2030 and achieving net zero emissions by 2050. Considering Ireland’s starting point relative to many of our European counterparts, significant action is required across the economy and society. By implementing initiatives across the following four pathways, Ireland’s urban areas can become more sustainable and resilient to climate change. 1. Modernise regulations Having the funding and finance to complete the green transition is necessary, but it is not sufficient: the regulatory environment must enable the required investment. Ireland’s regulatory regime has been slow to respond to the needs of those working towards Ireland’s net zero ambition. Green hydrogen (hydrogen produced from renewable energy) will have a key role to play in decarbonising the country’s hard-to-electrify sectors. This must be underpinned by a national hydrogen strategy that reviews existing regulations, considers where changes are required, and signals to the market the direction of travel in terms of the development of this vital sector. While the Government has consulted on a hydrogen strategy, the consultation report has yet to be published. An ambitious hydrogen strategy will go hand in hand with plans to develop offshore wind farms on Ireland’s west coast, allowing the country to become an energy exporter. 2. Plan for energy resilience and sustainability According to Engineers Ireland, Ireland faces an energy trilemma in which we must meet our energy needs while ensuring that we (i) increase sustainable energy production, (ii) keep our energy supply secure, and (iii) maintain affordability. Diversity of supply and investment in infrastructure, such as interconnectors and energy storage, are essential in overcoming this trilemma. 3. Invest in research and development We cannot build the world of tomorrow without research and development (R&D) today. We must therefore recognise the role of R&D within Ireland in making our green transition possible. As an international hub for technology firms, Ireland has the potential to make digitalisation a core part of how we decarbonise our economy, building smart cities and communities. Combined public and private investment in digitalisation R&D will transform our economy. 4. Rethink public-private partnerships Public-private partnerships (PPPs) are a very useful method of contracting to deliver infrastructure. In Ireland, they have been successfully deployed to develop our motorway network, build schools and now deliver much-needed social housing. They involve a lot of upfront work, de-risking projects and ensuring that the assets built are robust and well-maintained into the future. They also encourage more private sector involvement in infrastructure, bringing new technology and innovation into projects. In addition, PPPs allow governments and public bodies to retain ownership of the infrastructure assets, an essential feature for long-term public ownership. Rethinking PPPs involves broadening the areas in which this model can be deployed to help realise our net zero ambition. Areas where the model (or a variation of the model) can be deployed include district heating, battery storage, offshore grid infrastructure, bus and train fleets, electric vehicle (EV) charging, sustainable buildings and port infrastructure. On the (path)way to a better future Cities, big and small, can set out on clean-energy pathways. Each pathway requires working with various stakeholders, including some with competing needs. These stakeholders include regulators, power generators, power transmission and distribution companies, industry and consumers. Only by laying the proper groundwork can people be brought on board and positive outcomes maximised. Stakeholder engagement is all the more essential in the case of Ireland’s cities, which have less administrative and financial autonomy than cities such as Paris or Berlin – Ireland has the lowest level of local autonomy in the European Union. With a population that continues to grow rapidly and become more urban, Ireland must seize the opportunity to build more sustainable cities. A successful and sustainable green transition requires bringing people on board and embracing the technology that will enable shorter, cleaner commutes, warmer homes and a cleaner environment. Outlining and committing to clean energy pathways enables the public and private sectors to put the resources in place and build the necessary capacity to deliver the required investment in our cities and towns. Robert Costello is Leader in Capital Projects & Infrastructure Practice at PwC

  In this week’s Sustainability/ESG bulletin, read how environmental taxes in Ireland raised €4.5 billion in 2022 compared to capital taxes which raised €2.35 billion in the same period. In addition, we cover the launch of a multimillion pound project to explore the potential for geothermal energy in Northern Ireland, updates from Europe, new sustainability resources that are available for businesses, as well as the usual roundup of articles, podcasts and events. Environmental taxes bring in €4.5 billion in 2022 The Central Statistics Office (CSO) has published its latest release of environment taxes for 2022. The statistics indicate that environment-related taxes accounted for 4 percent of total taxes in 2022, amounting to €4.5 billion (compared to capital taxes which represented just under 2.9 percent in the same period amounting to €2.35 billion). Carbon taxes increased by 22 percent in 2022 compared to the same period in  2021, and amounted to €807 million. Energy taxes, which include transport fuels, accounted for 61 percent of all environment-related taxes in 2022. Transport taxes (including motor tax and vehicle registration tax) accounted for 39 percent of all environment-related taxes in 2022. Ireland’s progress on the UN Sustainable Development Goals Ireland has submitted its second Voluntary National Review (VNR) on the Sustainable Development Goals (SDGs) to the United Nations, assessing the country’s progress on actions to achieve Agenda 2030 and the SDGs. The VNR notes that while progress has been made, including fully achieving over 80 percent of the associated 169 targets, Ireland faces challenges in achieving the goals. A report published separately by Concern Ireland states that businesses, particularly SMEs, are a cohort in particular need of support in delivering on sustainability goals, and highlighted the tensions between the business sector’s drive for profit and the need to address the pressing climate and sustainability challenges. Separately, the  Minister for Transport, Eamon Ryan TD, announced the publication of the Renewable Transport Fuel Policy 2023-2025, which aims to bring Ireland closer to sustainable transport goals. Meanwhile, the EPA launched a new Food Waste Charter, calling on all businesses and State Agencies operating across the food supply chain to sign up and commit to reducing food waste to help Ireland meet its commitments to halve food waste by 2030 under UN Sustainable Development Goal 12.3. Further information about what the UN SDGs mean for accountants can be found in Chartered Accountants Ireland’s Sustainability for Accountants. Irish Government consultations on sustainability  The Department of the Environment, Communications and Climate Action (DECC) is inviting contributions to a number of consultations including: a call for expert evidence to support and inform the preparation of the Climate Action Plan 2024, which is due for publication later this year. The closing date for responses is 14 July, and submissions can be made online through a consultation platform.   a consultation on the Department’s Research and Innovation Strategy. The accompanying consultation document sets out the background and context for research and innovation in DECC, including an overview of current research and innovation activities supported. The closing date for receipt of submissions via the EU Survey website is 11 August. Climate Conversation 2023, an online questionnaire seeking views on how Ireland can secure a sustainable future and become a climate resilient society. Inputs will feed into ongoing work on Climate Action Plan 2024, and the closing date for responses is 8 September. Northern Ireland Geothermal energy potential project launches A new multimillion pound project from the Northern Ireland Department for the Economy is set to explore the potential for geothermal energy in Northern Ireland, it was announced this week. The project designed to ‘unearth the heat beneath our feet’ aims to support how the region will decarbonise the energy sector in pursuit of net zero carbon targets by 2050.  Geothermal energy is the heat generated and stored in the Earth and is a source of affordable, low-carbon, renewable energy. Air quality statistics - Europe The European Environment Agency (EEA) has published provisional data on CO2 emissions from new passenger cars and vans registered in Europe in 2022 which show that average carbon dioxide (CO2) emissions from new cars and vans in Europe dropped in 2022 for the third year running. The main driver of this trend was a continued growth in the share of electric car and van registrations. A separate report found that key air pollutants monitored under EU law continued to decline across most EU Member States, maintaining a trend since 2005. Separately the European Parliament’s Environment Committee adopted its position to improve air quality in the EU and to create a cleaner and healthier environment, setting stricter 2030 limit and target values for several pollutants to ensure that air quality in the EU is not harmful to human health, natural ecosystems and biodiversity. This news comes as the EU Commission this week adopted annual emissions allocations for Member States for 2023, 2024 and 2025, setting the maximum level of greenhouse gas emissions that each Member State can generate per year in the sectors covered by the European Union’s Effort Sharing legislation, aligning the allocations with the recently agreed, more ambitious national targets for 2030. These will collectively cut the EU’s greenhouse gas emissions in the Effort Sharing sectors by 40 percent when compared with 2005 levels (the previous 2030 target was a 30 percent reduction). Climate change, security and defence  - Europe The European Commission and the High Representative have adopted a Joint Communication laying out how the EU will address the growing impact of climate change and environmental degradation in the fields of peace, security, and defence. The communication sets out four main priorities around planning, operations and partnerships, and approximately 30 actions to deliver on them, making clear the connection between climate and environmentally induced instability and resource scarcity that can be instrumentalised by armed groups and organised crime networks, among others. Nature restoration law There was no majority amongst MEPs on the Environment Committee for the Commission’s proposal, as amended, for a Nature Restoration Law. The regulation on nature restoration was proposed by the Commission in 2022 as part of the European Green Deal to contribute to the long-term recovery of damaged nature across the EU’s land and sea areas and to achieve EU climate and biodiversity objectives. Separately the Commission is planning to mobilise an additional €430 million of EU funding for EU farmers, including €9.5 million for Irish farmers, impacted by adverse climatic events, high input costs, and diverse market and trade-related issues. New sustainability guidance for business Irish business group Ibec has launched ‘Climate Action: A toolkit for business’, in collaboration with Accenture. The toolkit provides businesses with the information they need for their climate action journey and provides practical guidance on how to develop an enduring climate action strategy.   Business in the Community Ireland has also recently published its 2023 Sustainability Handbook which aims to help develop a common understanding of the role of business as powerful agents for good in bringing about a low-carbon economy.   The Science Based Targets initiative (SBTi) has issued new supplier engagement guidance which aims to enable businesses to accelerate their decarbonisation efforts and support companies to engage their supply chains to set science-based targets.   The World Wide Fund For Nature (WWF) has issued a short explainer on the implications for business from recent climate science, describing how businesses can invest in solutions and innovations that can protect both the environment and nature, cut emissions and “unleash business ingenuity at every level with their customers, investors and employees”.   A summary has been published by the International Federation of Accountants (IFAC) of a recent 2023 EU Green Week event where global industry leaders, experts and finance professionals explored the crucial role of accountancy in driving sustainability. The event addressed the relevant skills and capacity building needed to empower accountants, and IFAC’s summary also includes useful resources and links to further information. Technical update (From our colleagues in Professional Accounting) The International Sustainability Standards Board (ISSB) issued its inaugural standards - IFRS S1 and IFRS S2 - on 26 June 2023.The standards create a common language for disclosing the effect of climate-relates risks and opportunities in companies. See also webcasts on IFRS S1 and how IFRS S1 and IFRS S2 work together, ISSB’s an article “Ten things to know about the first ISSB Standards” responses from EFRAG and IFAC and the UK Endorsement Board (UKEB) draft comment letter relating to the ISSB’s recent Request for Information to inform its initial two-year work plan. Comments are requested by 23 July 2023. The Department of Enterprise, Trade and Employment is holding a webinar on the Corporate Sustainability Reporting Directive on Tuesday 4 July at 3pm. The webinar will provide an update on the policy decisions taken following the recent public consultation on member state options, and an update on its transposition plans.  Glossary update The Chartered Accountants Ireland sustainability glossary has been updated to include the All-Ireland Pollinator Plan, the Business for Biodiversity Platform, Business for Nature, ENCORE, the Wildlife Habitat Council (WHC) and the WWF – Biodiversity Risk Filter. Did you know? People around the world are preparing for Plastic Free July. Participants are taking their own small steps by looking at the plastics in their lives and choosing one or two items to switch. A free 31 Days of Plastic Free Choices calendar is available to download, with ideas for how to reduce single-use plastic waste at work, home, school, and in the community. Podcast The Explainer: What is hydrogen power, and could it replace coal, oil, and gas? James Carton, assistant professor in Sustainable Energy with DCU and an academic advisor to the United Nations on hydrogen, joins us on this week’s podcast to discuss this lesser spotted form of energy. How do you make it? Where could it be used instead of fossil fuels? Could it be part of a clean energy future, or does it amount to simply greenwashing? (27 mins) ‘You can’t decarbonize without digitization, you can’t increase digitization without data centres’  Ciaran Hancock is joined by Irish Times Business Reporter Ian Curran, Director of Cloud Infrastructure Ireland, Michael McCarthy and Energy Researcher at UCC, Paul Deane to discuss the impact of data centres on Ireland’s carbon emissions goals (32 mins) Articles   Accounting for Sustainability (A4S) has published a piece about bring finance mindset into sustainability reporting How to tell a good ESG story (ICAEW Insights) New rules aim to clamp down on corporate greenwashing (Reuters) The crucial role of auditors and accountants in the climate change fight (Accountancy Age) Five Takeaways From the Paris Summit to Fix Global Climate Finance (Bloomberg) EU Banks Expand Risk Scenarios They Face From Climate Change  (Bloomberg) Greenwashing firms and public entities face growing threat of litigation (Irish Times) EU regulators step up scrutiny on greenwashing (ICAEW Insights) CSRD: striving for consistent and quality sustainability assurance engagements across the EU. Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 26 July, 2023  14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

Paul A. Slattery outlines the keys to successful impromptu public speaking. Ad hoc speaking situations are a common occurrence in professional settings, and the mere prospect of delivering a speech at short notice can be nerve-racking for many of us. However, there is no need to dread this. By employing specific techniques, you can deliver a successful presentation at any time. Be prepared to sound spontaneous Your goal is to sound spontaneous while articulating your ideas in an organised manner, making an impact on your audience. Although being fresh and spontaneous is desirable, simply ‘winging it’ should never be your approach. Achieving a balance of ‘organised improvisation’ and appearing natural without following a script requires preparation. The rule of three The ‘Rule of Three’ is an excellent starting point. It can be adapted to suit any topic and is based on the concept that we are more likely to remember a list of three items or ideas. You can use the Rule of Three to structure your presentation and deliver a solid argument, even with barely any time to prepare. Select the three most important aspects to concentrate on, such as “Three necessary measures to undertake….” The Rule of Three is exemplified in another recommended communication model: ‘Be Brief. Be Bright. Be Gone.’ This philosophy was introduced by Jay Frost and David Currier in their book of the same name. The idea was originally intended for aspiring pharmaceutical sales representatives, but it can be universally applied. To succeed in sales, it is essential to comprehend and implement these three principles: Be brief — Keep your sales pitches short and to the point. Be bright — Understand your product and its context. Be gone — Respect your customer’s time. Be brief Keep in mind that simplicity is key to effective communication. Start by defining the reason for the presentation and providing the relevant facts. Tell your audience only what they need to know – not everything you know. Be ready to answer their questions and maintain a positive attitude in your communication. Consider using the BLUF methodology. BLUF stands for Bottom Line Up Front and is a concise communication practice in which critical information is presented first. It is commonly used in the US military to ensure precision and impact. Think of BLUF as an inverted pyramid providing a simplified version of the message. It is applicable not only in military writing and journalism but also in business presentations. Be bright As a starting point, understand your situation and its context. You should also aim to create a bright impression by engaging in eye contact and, when feasible, firmly shake hands. Try maintaining a confident posture by standing tall. Make sure to convey openness and receptiveness by uncrossing your arms and legs. A sincere smile can go a long way in creating a connection. When speaking, project your voice into the room to ensure everyone can hear you clearly. Speak with confidence to convey your expertise and captivate your listeners. In other words, project your executive presence. Be gone Once you have conveyed your message, it is important to conclude promptly, respecting people’s time and avoiding unnecessary follow-up. Showing consideration for others’ schedules and minimising complexity are vital in any professional communication. There is no need to dread presenting at short notice. Being ready will assist you in delivering concise and compelling presentations. By practising the approaches mentioned here, you can deliver successful impromptu speeches, sound spontaneous and leave a lasting impression on your audience. Paul A. Slattery is the founder and Managing Director of NxtGEN Executive Presence

In developments this week, the Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting; the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. Read more on these and other developments that may be of interest to members below. Assurance and Audit Technical Release 01/2023 Safeguarding reporting for payment and electronic money firms has been issued. The purpose of this Technical Release (TR) is to provide assistance to auditors who are engaged by Payment and Electronic Money (E-Money) institutions (the Firms) following a request from the Central Bank of Ireland to carry out an engagement pursuant to a letter to the Firms dated 20 January 2023 and a further communication on 25 May 2023. The Financial Reporting Council (FRC) has published a research report about Audit Committee Chairs’ views on, and approach to, Environmental, Social and Corporate Governance (ESG) activities and reporting.  The report, commissioned by the FRC and conducted by independent research agency YouGov, involved qualitative interviews with 40 ACCs of Public Interest Entities (PIEs), representing a diverse range of organisations, including FTSE 100 and FTSE 250 companies, other listed equities, building societies, and unlisted banks.  The FRC has published a response to the consultation on proposed amendments to the Audit Enforcement Procedure (AEP) and related guidance launched on 3 April 2023. The main purpose of the proposals was to effect changes to the decision-making remit of the Board and the Case Examiner under Part 2 of the AEP (Initial Stages). Financial Reporting The Financial Reporting Council (FRC) has updated its guidance to Actuarial Standard Technical Memorandum 1 (AS TM1) version 5, which provides clarity on the application of some paragraphs within the standard. The International Accounting Standards Board (IASB) has issued the June 2023 IFRS for SMEs Accounting Standard update. This covers news, events and other developments in the standard during the month. This update includes an overview of the proposed amendments to the standard relating to the Pillar Two model rules. Insolvency For the first time in Ireland, the Court has appointed an Examiner to a foreign registered, non-EU company on the basis that its centre of main interests is in Ireland. McCann FitzGerald solicitors are acting for the Company in examinership and has summarised this precedent appointment. We have recently been engaging with the Examiner of the High Court who has noted that Judge Quinn, who manages the Examiner’s Court List, is keen to finalise a number of old liquidations in the coming months. The Examiner is seeking the engagement of Liquidators in helping to finalise these matters. In that regard, the Examiner will shortly be in contact directly with the Solicitors who act for Liquidators in these matters asking for papers to be submitted for a Final Application to the Court and your co-operation in preparing up to date Liquidator’s Reports would be greatly appreciated. Sustainability The International Sustainability Standards Board (ISSB) has announced that it will issue its sustainability standards IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures on 26 June 2023. Accountancy Europe have made available some working documents which compare the first set of European Sustainability Reporting Standards (ESRS) proposed in the recent Delegated Act to the European Financial Reporting Advisory Group’s original drafts. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has launched a Call for Evidence (CfE) on integrating sustainability preferences into suitability assessment and product governance arrangements under the Markets in Financial Instruments Directive (MiFID) II. The objective of this Call for Evidence (CfE) is to gather industry feedback that will help better understand the evolution of the market and provide answers as to how firms apply the new MiFID rules on sustainability. The FRC has issued its response to the ISSB consultation on the methodology for enhancing the international applicability of the SASB Standards and SASB Standards Taxonomy updates. Other News Accountancy Europe has published its June 2023 SME update. The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) has this week launched a public consultation on the first batch of policy products under the Digital Operational Resilience Act (DORA). This includes four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS). These technical standards aim to ensure a consistent and harmonised legal framework in the areas of ICT risk management, major ICT-related incident reporting and ICT third-party risk management. The consultation runs until 11 September 2023. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its Annual Report for 2022. It sets out the key achievements of the authority in fulfilling its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union (EU) during a transformative year.   The European Banking Authority (EBA) has published its Report on money laundering and terrorist financing (ML/TF) risks associated with EU payment institutions. Its findings suggest that ML/TF risks in the sector may not be assessed and managed effectively by institutions and their supervisors. The Central Bank has published its second Quarterly Bulletin of 2023. For further technical information and updates please visit the Technical Hub on the Institute website.

  In this week’s Sustainability/ESG bulletin, read about Ireland’s climate projections and its rating as an attractive country for renewable energy investments. Also covered is the increased participation of women in senior roles in Ireland, the launch of Northern Ireland’s first ever consultation on Carbon Budgets at a time of rising emissions across almost all sectors in the region, updates from the European Commission, as well as the usual round-up of articles, podcasts and events. Met Éireann releases first climate projections from the TRANSLATE initiative Met Eireann, the Irish Meteorological Service, has this week released climate projections from a new climate resource for Ireland. Projects include a likelihood of drier summers, an increasing number of heatwaves, and wetter winters. The resource, TRANSLATE: One Climate Resource for Ireland, aims to standardise future climate projections and develop climate services that meet the information needs of decision makers. Data from TRANSLATE will be used to communicate climate science data/information for products such as indices, risk assessments, and uncertainty estimates, and provide information needed to build resilience to climate change across all locations, sectors and services. Ireland’s holds position in global renewable energy development attractiveness The latest edition of the EY Renewable Energy Country Attractiveness Index shows that Ireland has retained its 2022 position as the 13th most attractive country in the world for renewable energy investments. The index ranks the world’s top 40 markets on the attractiveness of their investment in renewable energy and deployment opportunities. Ireland’s Offshore Wind Auctions and increasing use of Corporate Power Purchase Agreements (CPPAs) have reportedly contributed to the position in the ranking. Also, this week, the Government approved the Terms and Conditions for the first offshore RESS auction, ORESS 1, with final auction results now confirmed and available on the EirGrid website. At least three offshore auctions are currently planned this decade. Irish businesses spent €8.6 billion on energy in 2021 Figures released by the Central Statistics Office (CSO) this week have revealed that the cost of energy purchases by enterprises in 2021 was €8.6 billion, of which 56 percent was paid for by firms in the services sector. The survey, using data from approximately  5,000 enterprises, showed that purchases of electricity and natural gas accounted for 62 percent of total energy costs incurred by enterprises in 2021, and the use of renewable energy purchased directly by enterprises increased by 59 percent between 2012 and 2021. The release was compiled during the COVID-19 pandemic, which impacted on the 2020 and 2021 data. Read more. Increase in proportion of women in senior roles The first annual report of the Women in Finance Charter published this week and found that female representation on executive committees in Ireland has increased from 32 to 35 percent since 2022. The Charter is a collaboration between industry and Government under the Ireland for Finance strategy. Established in 2022, it seeks to improve female representation in financial services firms operating in Ireland and is open to all financial services firms operating in Ireland. Northern Ireland launches first ever consultation on Carbon Budgets Northern Ireland’s first ever consultation on Carbon Budgets has been launched by the Department of Agriculture, Environment and Rural Affairs (DAERA). The 16-week consultation will run from 21 June to 11 October and seeks feedback on the proposed first three carbon budgets for 2023-2027, 2028-2032 and 2033-2037, as well on the interim targets that should be set for 2030 and 2040 for reductions in greenhouse gases. DAERA is also seeking views through the consultation on the recommendations of the UK Climate Change Committee (CCC) on the Path to Net Zero for Northern Ireland, and is keen to hear from individuals, businesses, communities, and other organisations from across the region. The consultation was launched the day after DAERA’s publication of a statistical bulletin on greenhouse gas emissions for Northern Ireland for the period between 1990 and 2021 which also shows that between 2020 and 2021 emissions increased in all sectors in the region, with the exception of waste management and public. The largest increases were in the transport, agriculture and energy supply sectors, respectively. Plastic packaging tax – monthly update from HMRC (From our colleagues in Tax) HMRC has begun sending a monthly email containing updates on the plastic packaging tax (“PPT”). This month’s email is available to read. HMRC has also sent an email with key reminders on the PPT. European Commission consults on Carbon Border Adjustment Mechanism The European Commission has published a call for feedback on the rules governing the implementation of the Carbon Border Adjustment Mechanism (CBAM) during its transitional implementation. To give time for businesses to prepare, during the phase, from 1 October 2023 until the end of 2025, traders will only have to report on the emissions embedded in their imports subject to the mechanism without paying any financial adjustment. Sustainable finance for SMEs and Green EU Trademarks on the rise (from our friends in Accountancy Europe) The European Commission has published a new sustainable finance package in which it states it will ask EFRAG to prioritise work on what it describes as “a voluntary standard for non-listed SMEs, which may use it to standardise the sustainability information they wish to report, and which can make it easier for them to participate in the transition to a sustainable economy.” It also emphasises the need to reinforce SMEs’ access to and opportunities in transition finance.   The EU’s Intellectual Property Office (EUIPO) has published its latest Green EU Trade Marks report, showing that SMEs account for 10 percent of environmentally friendly EU Trade Marks (EUTMs) and filed more green EUTMs than large companies between 2015 and 2021. The report argues this demonstrates the growing commitment of SMEs towards sustainable practices and their role in introducing eco-friendly goods and services into the EU Single Market.   Accountancy Europe support tools for SMEs’ sustainable transition include a paper on SME sustainability risk management and a 3-step sustainability checklist, with more to come. IFRS Foundation publishes educational material on effects of climate matters on SMEs’ Accounting Standard The International Federation for Reporting Standards (IFRS) has published educational material to illustrate how the IFRS for SMEs Accounting Standard requires companies to consider climate-related matters that have a material effect on the financial statements. The material was developed in response to feedback suggesting that interest in the potential effects of climate-related matters on SMEs’ financial statements is growing among users of those statements. Glossary update The Chartered Accountants Ireland sustainability glossary has been updated to include the Carbon Border Adjustment Mechanism (CBAM), Carbon capture, utilisation and storage (CCUS), double materiality, and more.   Podcast Richard Curtis, writer of British comedies like Love Actually, Mr. Bean and Blackadder talks to Bloomberg Zero about Make My Money Matter, an initiative to make retirement funds and banks greener (35 mins) Articles Europe is 2.3 degrees hotter than before industrial revolution, climate report finds (The Journal) Much of the time growth strategies and green strategies don’t have to be so different -  You can make your business more sustainable, with an applied focus (Irish Independent) Where are leading Irish companies on decarbonising and embracing sustainability? (Irish Times) In the loop: tech and innovation in the circular economy - From manufacturers to consumers, tech is coming around to the ideals of the reuse and regeneration of existing materials and products (Business Post)   Upcoming events The UN Global Compact is organising a series of activities around the world for International SME Day on 27 June.  Small Business, Big Impact is a live regional in-practice exchange session to learn directly from SMEs on how they are integrating sustainability into their business strategy and operations. Speakers include Jess Fleischer, CEO, Son of a Tailor (Denmark) and Hanna Kalliomäki, Chief Sustainability Officer, Paptic (Finland). 27 June 2023, 14:30 (Dublin time). Register Here CSRD: striving for consistent and quality sustainability assurance engagements across the EU Accountancy Europe is inviting key stakeholders to exchange on their expectations for assurance engagements, the practical implications of the CSRD assurance requirement and the role of the assurance standard. This event is in person and by invitation only. For more information, contact events@accountancyeurope.eu. 5 July Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountant now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. 3rd or 4th Wednesday of every month Next: 28 June, 2023  14.00-15.00/30 Chartered Accountant House/Teams If you would like to attend please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.