The FRC Lab has published a report entitled "Net zero disclosures". This report, which highlights examples of current practice, discusses some of the key considerations for investors who use net zero disclosures and the elements of net zero disclosures that investors want to understand. The report builds on three key elements of net zero disclosures (commitments, impacts and performance) and discusses areas of consideration and challenge within these topics. The report provides some useful guidance for preparers seeking to navigate the difficult area of reporting on their greenhouse gas emission reduction commitments.

Welcome to this week’s Technical Roundup. In developments this week, the IFRS Foundation has published its September 2022 monthly news summary which highlights the news and events from the past month and in a recently released episode of the International Accounting Standards Board podcast, Chair Andreas Barckow and Executive Technical Director Nili Shah, talk through the highlights from the September 2022 IASB meeting. Read more on these and other developments that may be of interest to members below. Financial Reporting IAASA has published its annual Observations paper highlighting matters that those charged with governance should consider when preparing their financial statements for 2022. The Financial Reporting Council (FRC) Lab have issued their September 2022 news roundup. EFRAG, the European Financial Reporting Advisory Group has published its September 2022 update. In its September 2022 podcast, the ISSB discuss the highlights from its recent board meeting. The IASB have also released its September 2022 podcast. The IFRS Foundation has published its September 2022 monthly news summary which highlights the news and events from the past month. The FRC has published a report on Navigating barriers to senior leadership for people from minority ethnic groups in FTSE 100 and FTSE 250 companies.  Auditing and Assurance The Financial Reporting Council (FRC) has opened a post implementation review of the auditing standard (ISA) (UK) 540 (Revised December 2018) Auditing Accounting Estimates and Related Disclosures. This ISA became effective for audits of accounting periods beginning on or after 15 December 2019. Interested stakeholders are also invited to attend one of two roundtables to support the call for feedback. These are being held on: Wednesday 23 November 2022, 14:00-15:00 (online) Thursday 24 November 2022, 11:00-12:00 (in person at the FRC’s offices) To RSVP for the roundtables please email stakeholderengagement@frc.org.uk. The call for feedback is open until 13 January 2023. Accounting In a recently released episode of the IASB podcast, Chair Andreas Barckow and Executive Technical Director Nili Shah talk through the highlights from the September 2022 IASB meeting. Ethics and the Ukraine Conflict The Staff of the International Ethics Standards Board for Accountants have released the Staff Alert, The Ukraine Conflict: Key Ethics and Independence Considerations. The publication draws the attention of professional accountants in business and in public practice, including firms, to a number of important provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) with which they must comply in carrying out their work as they navigate the unprecedented challenges and risks arising from the Russia-Ukraine war. Other The Pensions Authority has published its Annual Report and Accounts for 2021. The Annual Report and Accounts for 2021 and an accompanying statement from the Pensions Regulator, Brendan Kennedy, can be read here. Also in Pensions Authority news, they recently published information in relation to exit charges, trustee annual reports and audited accounts for one member arrangements (OMAs) migrating into a master trust. You can read more details from their website here. The Pensions Authority has also published an update for trustees in relation to trustee annual reports and audited accounts for group schemes with less than 100 active and deferred members transferring to a master trust or PRSAs. The UK Financial Conduct Authority has published research showing that a quarter of consumers it surveyed would withdraw pension savings earlier to cover cost of living – making them vulnerable to scammer ‘misdirection’. It has recently launched its latest ScamSmart campaign aimed at giving consumers the knowledge and tools to avoid pension scams and you can read more about it here. The Central Bank has recently announced a review of the Consumer Protection Code 2012 (“Code”) to modernise it and ensure it is fit for purpose. The Code is a set of principles and rules that regulated financial firms must follow when they sell financial products and services, give financial information or advice, advertise financial products or services and handle complaints of consumers. A discussion paper has been published and you can click on the link to access the discussion paper and complete the survey. The Central Bank published its final Quarterly Bulletin of 2022 and  you can read the press release here. Chartered Accountants Ireland Western Society was pleased to co-host the launch of the Bulletin in the Galmont Hotel Galway on 6 October 2022. The event was an opportunity to discuss the general outlook for the Irish economy and the Bulletin which noted that energy-driven inflation is causing uncertainty and challenges for domestic growth. Following a short presentation, attendees were invited to ask questions from the panel moderated by Dr Brian Keegan, Director of Advocacy and Voice, Chartered Accountants Ireland.  The panel included Robert Kelly, Director of Economics and Statistics, Ireland; Tara McIndoe-Calder – Senior Economist, Central Bank of Ireland and Cathal O'Donoghue – Established Chair, Social and Public Policy, National University of Ireland, Galway. Please click here to access a podcast by Europol on Ransomware. A number of cybercrime specialists speak about how law enforcement dealt with a cybercriminal network selling ransomware services. Also in Ireland on this topic, the National Cyber Security Centre and the Garda National Cyber Crime Bureau this week launched a joint public awareness campaign for European Cyber Security Month. The campaign this year is focused on the twin themes of phishing and ransomware, urging vigilance and outlining their potential impacts on the everyday lives of Irish citizens and businesses. You can read more in the Dept. of Justice press release here. On Wednesday of this week there was a cross government launch of  the new National Implementation Plan for the Sustainable Development Goals 2022-2024. Its purpose is to  increase Ireland’s ambition and strengthen implementation structures to achieve the Sustainable Development Goals (which are set out in the plan). The Minister of State at the Department of Finance with special responsibility for Financial Services, Credit Unions and Insurance, Seán Fleming, recently launched an update of the Ireland for Finance strategy. This update charts the future development of the international financial services sector in Ireland to the end of 2026. Under the updated strategy the government has a target to grow employment in the sector by 5,000 net new jobs. You can read the press release here and access the updated strategy by clicking here and clicking the Updated Ireland for Finance Strategy. For further technical information and updates please visit the Technical Hub on the Institute website. 

The Department of Finance published its Annual Report for 2021. The report relates to the Department’s performance and the work undertaken in achieving the strategic goals of the Department. These include achieving a balanced, sustainable macroeconomic environment and sound public finances, a well-regulated, sustainable financial sector, international leadership in economic, fiscal and financial decision making and promoting environmentally sustainable progress.

Revenue has updated its Guide to Exchange of Information under Council Directive 2011/16/EU, Ireland’s Double Taxation Agreements and Tax Information Exchange Agreements and the OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters. The revised guidance sets out the role of the International Tax Division.

The Department of Finance has published a review of the Help to Buy Scheme by Mazars. The scheme is intended to assist first time buyers (FTBs) to save for the deposit required to qualify for a mortgage for the purchase of a newly built residential property. The report notes that the scheme is poorly targeted and promotes demand for new housing in a market where there are supply constraints, while highlighting the deadweight associated with the expenditure. The Mazars report states that, “[t]here are weaknesses in the Help to Buy scheme and it cannot be concluded that it is sufficiently efficient to represent good value for money. Consequently, we conclude that it should be withdrawn. However, now is not the time to do so.” The report recommends an extension of the scheme for two years only, while removing self-builds from the scheme and increasing the minimum mortgage loan-to-value ratio from 70 percent to 80 percent, during which time a move away from a tax expenditure scheme towards a scheme under the direction of the Department of Housing, Planning and Local Government should be facilitated. However, in Budget 2023 the Minister for Finance announced an extension of the Help to Buy scheme, at current rates, to the end of 2024.

Revenue has published a new Tax and Duty Manual to provide guidance for caseworkers conducting compliance interventions in respect of employers who have incorrectly operated payroll taxes. The guidance deals only with cases where an update of the employee’s payroll record is required due to the incorrect operation of the PAYE system by an employer as a result of error or carelessness. This guidance will apply to any self-correction or qualifying disclosure received and/or Revenue compliance intervention initiated following the publication of this Tax and Duty Manual.

Revenue has published updated guidance regarding its Revenue On-line Service (ROS) and useful ROS Pay and File tips in advance of the personal tax deadline of 31 October 2022. The deadline is extended to Wednesday, 16 November 2022 where the taxpayer both files their 2021 Form 11 return and makes the appropriate payment for 2022 Preliminary Tax and the balance of 2021 Income Tax using ROS. The extension does not apply where only one of these actions is completed through ROS. The updated ROS Tax and Duty Manual includes information on new services such as Trust Register Functions, the redesign of the ROS ‘Login’ and ‘Manage My Certificate’ screens, MyEnquiries auto-registration for new ROS registrations and information on updating a bank account in an RDI. The updated ROS Pay and File Useful Tips Tax and Duty Manual is to assist taxpayers and their agents to comply with their ROS Pay and File obligations. The guidance includes information on the calculation and payment of 2022 preliminary tax, CGT self-assessment, CAT and PAYE return deadlines, updates to the 2021 Form 11 and the ROS Offline application. Further information is available in Revenue eBrief no. 178/22.

Revenue has published information on the changes made to excise duty rates as part of Budget 2023 and has updated a number of Tax and Duty Manuals. Details on the changes made to excise duty rates as part of Budget 2022 are included in Tax and Duty Manual Budget 2023 - Excise Duty Rates. The Tax and Duty Manual Tobacco Products Tax has also been updated to reflect changes to the excise duty rates that take effect from 28 September 2022.

Revenue published its Budget 2023 summary, detailing the key measures in this year’s budget.

Welcome to this week’s Technical Roundup. In developments this week, the Irish Pensions Authority recently published information for trustees on the appointment of a service provider to carry out more than one key function and the Financial Reporting Council has published the revised ISA (UK) 600 (Revised September 2022) Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors). Read more on these and other developments that may be of interest to members below. Financial Reporting The UK Endorsement Board (UKEB) has published a report entitled “Subsequent Measurement of Goodwill: A Hybrid Model”. This report contributes to the ongoing international debate on the subsequent measurement of goodwill. The Financial Reporting Council Lab has published a report entitled “Structured Digital Reporting - Improving quality and usability”. This report identifies lessons learned from the first year of mandatory structured digital reporting. The FRC are holding a joint webinar with the Financial Conduct Authority (FCA) to discuss the regulators views on the first year of TCFD-aligned disclosures. The FRC has also published its thematic review of the accounting and reporting for business combinations. The European Financial Reporting Advisory Group (EFRAG) has published a discussion paper on Accounting for Variable Consideration from a Purchaser’s Perspective, and invites constituents to comment by 31 May 2023. IAASA has published a Consultation Paper on its proposed revised Policy Paper – Publication of information regarding IAASA’s financial reporting supervision activities. The International Accounting Standards Board (IASB) has issued narrow-scope amendments to IFRS 16 Leases, which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. These amendments will apply for periods beginning on or after 1 January 2024, with early adoption permitted. The IASB has issued its September 2022 update. The taskforce on Disclosures about Expected Credit Losses has published a report entitled “Recommendations on a comprehensive set of IFRS 9 Expected Credit Loss disclosures”. The guidance is aimed primarily at the biggest UK-headquartered banks and building societies but is also likely to be relevant to a much wider group of preparers. Auditing and Assurance Revisions to ISA (UK) 600 The FRC has published the revised ISA (UK) 600 (Revised September 2022) Special Considerations -Audits of Group Financial Statements (Including the Work of Component Auditors). IAASA has published its fourth video in a series designed to provide information on the Quality Management Standards in Ireland. This video provides an overview of International Standard on Quality Management 2 – Engagement Quality Reviews. Click here to access the video. Sustainability The IFRS Foundation staff has prepared the staff request for feedback on the draft of the IFRS Sustainability Disclosure Taxonomy. The document outlines staff recommendations reflecting the proposals in the two exposure drafts published by the International Sustainability Standards Board: [Draft] IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information; and [Draft] IFRS S2 Climate-related Disclosures. The European Securities and Market Authority (ESMA) has updated its sustainable finance implementation timeline with an interesting infographic. EFRAG is establishing Community Sector Groups across a number of sectors to allow a range of external stakeholders to provide their input in the development of sector specific draft European Sustainability Reporting Standards. Stakeholders with a direct interest in the sectors listed below can apply to join these groups via the EFRAG website. The groups being established cover the following sectors; Agriculture, Farming and Fishing Coal Mining & Mining Energy and Utilities Food and Beverages Motor Vehicles Oil and Gas Mid to Downstream & Oil and Gas Upstream Road Transport Textiles, Accessories, Jewellery and Footwear The International Sustainability Standards Board (ISSB) has issued its September 2022 update. Corporate Governance The Wates Principles have been widely adopted by large private companies and have become an important part of the UK’s corporate governance environment.  The FRC invites you to an event on 25 October that will explore benefits and opportunities the principles bring to individual companies and the good practice in corporate governance. Other The Irish Pensions Authority recently published information for trustees on the appointment of a service provider to carry out more than one key function. Read further information in their press release. The Authority reminds trustees that they must notify the Authority of any arrangement concerning the outsourcing of a key function within a certain timeframe and it also provides guidance on its website on how to notify the Authority of key function holder appointments. The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has this week published its Report on the distributed ledger technology pilot regime (DLT Pilot). The Central Bank is holding a conference on 2/3 November 2022 the theme of which will be Supporting the Economy, Delivering for the Consumer. Discussions will cover the challenges and opportunities facing the financial system, including climate change, consumer protection, innovation, disruption and regulation. There is a good line up of speakers already with more to be announced. Interested readers can go to the relevant webpage here for further information. Arbitration Ireland recently published “A Concise Guide to Arbitration in Dublin”. It describes the guide as providing the essentials for anyone participating in an arbitration in Dublin, from the basis of the arbitration agreement, the appointment of arbitrators, to the making, challenging and enforcement of the award. This text includes a synopsis of decisions under the Arbitration Act 2010, a summary of the Commercial Court in Ireland and considers the role of Ireland’s designated arbitration judge in addition to general guidance on Irish contract law. Interested readers can download their free copy by following this link. The Financial Conduct Authority in the UK has recently updated its page on Cryptoassets: AML / CTF regime. Click the link to access the page for further information. In the UK the government has recently introduced the Economic Crime and Corporate Transparency Bill  Click here to read the UK Government press release on the Bill  and click here for a government factsheet. According to an article on the Bill by Eversheds Sutherland the Bill builds on the Economic Crime (Transparency and Enforcement) Act 2022 which came into effect in the UK on 15 March 2022. The Bill proposes to expand the powers given to Companies House and to improve transparency over UK companies to better protect the UK economy and improve its reputation as a place of legitimate business. It also includes plans to expand the Serious Fraud Office’s  investigative powers. Also see here an article from Reynolds Porter Chamberlain LLP solicitors (RPC) on the provisions in the Bill to make it quicker and easier for law enforcement agencies, such as the National Crime Agency, to seize, freeze and recover cryptoassets used by criminals to launder the proceeds of crime. According to RPC the Bill is due to have its second reading in October and a number of amendments can be expected before the Bill is enacted. In its fifth episode of “The Fast Future with IFAC” Amy Bridges, Professional Development Manager at CPA.com offers an expert view of the market for client advisory services and a wide range of opportunities and challenges for Small and Medium Practitioners. The Department of Children, Equality, Disability, Integration and Youth has informed the Decision Support Service (DSS) that a ‘go-live’ date of 21 November 2022 has been selected for the full commencement of the Assisted Decision-Making (Capacity) Act 2015 (the 2015 Act). The DSS will provide further updates in advance of its commencement. For further technical information and updates please visit the Technical Hub on the Institute website.   

Revenue has updated its Tax and Duty Manual on Phased Payment Arrangements (PPA). The guidance now reflects the enhanced PPA system that allows for PPA consolidation. It also sets out temporary changes to PPA during Covid-19 which remain in place. Previously taxpayers were unable to add additional liabilities to their existing PPA. However, the ability to add extra periods to a PPA has become a necessity because of the need to incorporate warehoused debt into a PPA at the end of the Debt Warehouse Period 2. The enhanced PPA system allows for PPA consolidation, providing taxpayers greater flexibility in the management of their PPA. Taxpayers can apply for PPA consolidation on ROS. Further information regarding Debt Warehousing Scheme PPAs is available here.

Revenue would like to remind members about the filing obligations of charitable organisations and to highlight that those charities that do not hold tax exemption must file returns. Revenue has issued a note stating: “If a registered charity wishes to apply to Revenue for tax exemption, an application must be submitted, through Revenue’s online applications system, which can be done via ROS. Where Revenue grants tax exemption to a registered charity, it issues a CHY number to that charity; this indicates that the charity has tax exempt status. A registered charity that does not hold tax exemption is obliged to file all returns, as appropriate, to Revenue. There is no obligation on tax exempt charities to file tax returns to Revenue for the taxes to which the exemption applies. They must file returns for those taxes to which the exemption does not apply. Any enquiries in this regard can be sent via Revenue’s secure online MyEnquiries facility.” Details about applying for tax exemption are available here.