Technical resource centre

Welcome to the latest edition of Technical Roundup. In developments since the last edition, in its article entitled ‘DORA Review: Balancing Digital Resilience and simplification’, Accountancy Europe discusses the reasons why the Audit Directive, and not the Digital Operational Resilience Act (DORA), is the most appropriate framework to strengthen digital-resilience requirements for statutory auditors and audit firms.  The Global Reporting Initiative (GRI) has launched a new checklist to help entities align their climate reporting using the GRI standards with the UN’s official approach to setting credible climate commitments, targets and transition plans. Read more on these and other developments that may be of interest to members below. Financial Reporting EFRAG, the European Financial Reporting Advisory Group, has published its October 2025 update. This report summarises the public technical discussions and decisions taken at EFRAG during the month. The comment period for responses to EFRAG’s draft Endorsement Advice for Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures remains open until 28th November 2025. In its Annual Review of Corporate Governance Reporting, the Financial Reporting Council (FRC) has highlighted some reporting trends and practices among 100 UK-listed companies against the 2018 UK Corporate Governance Code. In its Thematic Review “Reporting by the UK’s smaller listed companies”, the FRC examines annual reports from 20 companies listed outside the FRSE 350. The Thematic Review aims to help companies improve their reporting quality in four key areas - Revenue recognition, Cash flow statements, Impairment of non-financial assets and financial instruments - which have historically identified room for improvement. The FRC has published the 2026 UK Taxonomy Suite which incorporates changes to the FRC Taxonomy Suite, Charities Taxonomy, and Irish Taxonomy. The International Accounting Standards Board (IASB) has issued amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates. These changes are intended to clarify how companies should translate financial statements from a non-hyperinflationary currency into a hyperinflationary one. The IASB has published recordings and presentations from its recent Research Forum. Auditing and Assurance The Financial Reporting Council (FRC) has issued International Standard on Sustainability Assurance (UK) 5000, “General Requirements for Sustainability Assurance Engagements”, which provides UK companies, investors and assurance providers with a consistent, internationally aligned assurance standards for voluntary use in sustainability assurance engagements. The Law Society of Ireland has announced that its new online portal for Reporting Accountants to upload an annual or closing reporting accountant’s report for a Solicitor client on to the Law Society’s system is at an advanced stage and is nearly ready to launch. Sustainability The European Parliament has voted in favour of a simplification of the sustainability reporting requirements for European companies. Following the release of the Omnibus proposals in February, there has been much debate and discussion regarding the scope of companies who should be subject to the European Sustainability Reporting Standards, as well as the extent and rigour of these standards. Following these negotiations, the European Parliament has voted in favour of limits which will mean that only businesses with over 1,750 employees and annual turnover of €450 million will be subject to these rules. The CSDDD limits have also been increased to 5,000 employees and turnover of €1.5 billion. GRI, the Global Reporting Initiative, has criticised the simplification noting that the position adopted by the Parliament “is a backward step for the EU – and undermines European leadership on sustainability”. The Global Reporting Initiative (GRI) has launched a new checklist to help entities align their climate reporting using the GRI standards with the UN’s official approach to setting credible climate commitments, targets and transition plans. EFRAG is hosting a conference ‘EFRAG unveils Draft Simplified ESRS: A European Milestone for Sustainability Reporting’ on 4 December 2025.  The schedule includes presentations from expert teams, the launch of the ESRS Knowledge Hub and keynote speeches. The Irish Auditing and Accounting Supervisory Authority (IAASA), in collaboration with the Irish Accounting and Finance Association (IAFA), recently hosted a webinar on CSRD Reporting and Assurance. Accountancy Europe has published its November 2025 Sustainability Update. Accountancy Europe has responded to EFRAG’s VSME Market Acceptance survey. The European Banking Authority (EBA) announced the release of the Network for Greening the Financial System (NGFS) declaration on the economic cost of climate inaction during the 2025 United Nations Climate Change Conference (COP30) in Belém, Brazil. The EBA is an active member of NGFS, which represents a group of central banks and supervisors sharing best practices and contributing to the development of environment and climate risk management in the financial sector. The declaration underscores the mounting macroeconomic and financial risks of delayed climate action and reaffirms the NGFS’s commitment to supporting a well-managed transition to a low-carbon economy. Please refer to following link for a copy of the declaration. Anti-money laundering On 9 December 2025 (09:00 - 12:00) Accountancy Europe is hosting an in-person event in Brussels titled “Beyond compliance – the human cost of money laundering to explore the real-life impacts and human cost of financial crime and discuss how cooperation across sectors can make a tangible difference. Speakers include the EU Commissioner Maria Luís Albuquerque. Readers who may wish to attend can click here for more details and to register. The Financial Conduct Authority (FCA) published findings from a review of risk assessment processes and controls in firms. The findings highlight good and poor practice to help firms reflect on how they are meeting the existing risk assessment requirements. Fraud Central Bank of Ireland issued a warning to consumers about the changing fraud landscape and also launched a campaign to help consumers avoid scams by highlighting how scammers' techniques are evolving including use of social media and digital channels for scams. Common scams now used by financial fraudsters include fake comparison websites, fraudulent recovery scheme scams, investment scams, and use of deepfakes. The CBI has published advice and information for consumers outlining what steps can be taken to verify that the individual or company they are dealing with is real and trustworthy before making any financial decisions or providing personal information.  FraudSMART (a fraud awareness initiative developed by Banking & Payments Federation Ireland (BPFI) in conjunction with member banks), issued a fresh warning to consumers to be on alert as highly convincing investment scams continue to rise, which use AI generated adverts. The Garda National Economic Crime Bureau noted a concerning 21% increase has been recorded in the three months up to October 2025. For pointers on how to avoid investment scams, FraudSMART has also published a 'Spotlight on Investment Scams information leaflet'. Central Bank of Ireland (CBI) The Central Bank of Ireland (CBI) published the second Financial Stability Review report for 2025 outlining that the main risks facing Ireland's financial system include stretched valuations in global markets and economic uncertainty. Gerry Cross, the CBI's Director for Capital Markets and Funds gave a keynote speech at the annual Retail Intermediaries Roadshow covering the evolving regulation of financial intermediaries, the importance of this sector for consumers, the outcomes that the Central Bank sees as important for this sector, and simplification and proportionality in regulation and supervision. Artificial Intelligence The European Commission has published a Proposal for regulation on simplification for AI rules, designed to simplify its digital regulatory framework, including the AI Act and data privacy rules. The ‘Digital Omnibus’ package introduces several measures, including delaying the stricter regulation of ‘high-risk’ AI applications until late 2027. On Wednesday, 19 November Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation Niamh Smyth launched a public consultation on the new Responsible Business Compass, an online pilot tool designed to help Irish businesses understand and comply with sustainability-related EU Regulations and Directives.  The project is being developed by the OECD in cooperation with the European Commission. Cybersecurity The National Cyber Security Centre (NCSC) in the UK published an article regarding the NCSC's 'Cyber Action Toolkit, which can help small businesses to improve their cybersecurity framework. The NCSC's toolkit is available at the following link. The National Cyber Security Centre in Ireland issued an alert regarding a critical vulnerability impacting Fortinet's FortiWeb product. The NCSC strongly recommends installing updates for vulnerable systems with the highest priority, after thorough testing. Affected organisations should review the latest release notes and install the relevant updates from Fortinet. The European Union Agency for Cybersecurity (ENISA) announced its expanded role to support cybersecurity vulnerability management in the EU and new responsibilities that will occur under the European Cyber Resilience Act including the implementation of a single reporting platform for manufacturers to notify actively exploited vulnerabilities.  Companies Office - Busy Filing period We reiterate the advice of the Companies Registration office to file early, if at all possible. Please see latest news from the CRO outlining the issues being faced as the peak filing date of 25 November draws closer. Readers are also referred to our recently published tips and pointers for the busy Annual Return filing season which may help you navigate the process with the Companies Registration Office. Digital Operational Resilience Act (DORA) The European Supervisory Authorities (EBA, EIOPA, and ESMA - the ESAs) published the list of designated critical ICT third-party providers (CTPPs) under the Digital Operational Resilience Act (DORA). This designation marks a crucial step in the implementation of the DORA oversight framework. The list of designated critical ICT third-party providers subject to direct oversight and examination is included in this document. Under Article 58(3) of DORA, the European Commission (EC), after consulting the European Supervisory Authorities (ESAs) and the Committee of European Auditing Oversight Bodies (CEAOB), must, by 17 January 2026, assess whether DORA or the Audit Directive is the most appropriate framework to strengthen digital-resilience requirements for statutory auditors and audit firms.  Accountancy Europe’s recent article highlights the upcoming assessment process by the EC and outlines reasons why it would not make sense to expand DORA’s scope to include auditors. Other news The Financial Reporting Council (FRC) has published a report to support signatories as they prepare to apply to the updated Stewardship Code which takes effect from 1 January 2026. The European Securities and Markets Authority (ESMA) has published the results of a peer review which found that the foundational frameworks for the supervision of depositaries are in place. The Pensions Authority has published its defined benefit scheme statistics for 2024 which statistics are compiled from the annual actuarial data returns submitted to the Authority. In other Pensions Authority news it has published information on the 2025 annual compliance statement  that is provided for under the Pensions Act. It has also extended the deadline for submissions to its public consultation on in-scheme drawdown. The closing date for submissions is now 20 January 2026. The Minister of State for Employment, Small Business and Retail, Alan Dillon, has announced a public consultation seeking the views of members of the public, employers and other interested parties on the right to request a remote working arrangement, provided for within the Work Life Balance and Miscellaneous Provisions Act 2023. 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.

The Financial Reporting Council (FRC) has issued International Standard on Sustainability Assurance (UK) 5000, “General Requirements for Sustainability Assurance Engagements”, which provides UK companies, investors and assurance providers with a consistent, internationally aligned assurance standards for voluntary use in sustainability assurance engagements. ISSA (UK) 5000 is a UK version of the global benchmark standard for sustainability assurance, developed by the International Auditing and Assurance Standards Board (IAASB). Its introduction for use in the UK demonstrates the FRC’s continued support for globally aligned assurance standards that underpin quality assurance engagements. The Standard provides comprehensive requirements for conducting sustainability assurance engagements, applicable to both limited and reasonable assurance, and is designed to be profession-agnostic. The UK Standard is intended for voluntary use by UK assurance providers and aligns with the international standard.

The Charity SORP making body has published the October 2025 edition of the Charity SORP. Statements of Recommended Practice (SORPs) are sector-driven recommendations on financial reporting which supplement the Financial Reporting Council’s (FRC) accounting standards. The Charity SORP provides guidance on how charities should apply FRS 102 and is mandatorily applicable for certain charities in the UK. In the Republic of Ireland, the SORP is not mandatorily applicable, however, some charities apply it voluntarily. The SORP has been updated to reflect the changes made to FRS 102 as a result of the 2024 Periodic Review by the FRC. For charities using the SORP, the changes will be effective for reporting periods beginning on or after 1 January 2026. Some key changes include: New reporting tiers, which set out different reporting requirements for charities who fall within each tier. New and enhanced disclosures for the Trustees' Annual Report. More guidance and required disclosures relating to going concern. Guidance on how to apply the FRS 102 5-step model for income received in exchange transactions. A new lease accounting module which explains the new leasing requirements introduced by FRS 102. An increase in the threshold at which a charity is required to produce a cash flow statement to £15 million (provided FRS 102 does not otherwise require a cash flow statement to be prepared). Updated guidance on accounting for social investments to provide clarity and consistency in reporting.   The SORP-making body has also prepared a summary document summarising the changes made in each module.

The European Union has adopted the 19th package of sanctions against Russia. The new package of sanctions substantially increases the pressure on the Russian war economy, targeting key sectors such as energy, finance, the military industrial base, special economic zones, as well as enablers and profiteers of its war of aggression. Sanctions include an introduction of a total ban on Russian Liquefied Natural Gas (LNG) and a further clamp-down on the shadow fleet. Measures also target financial services and infrastructure (including for the first time crypto), as well as trade, the services sector, and strengthen anti-circumvention tools.  This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

The UK Government is making some changes and updates in relation to sanctions. On 3 November it launched a new sanctions enforcement action page on GOV.UK that brings together sanctions enforcement information from across HM Government - including penalty notices, annual reviews, case studies and key lessons for industry. It has also announced that there will be a move to a single list for UK sanctions designations from 28 January 2026. Currently the OFSI Consolidated List from HMT provides information relating to asset freeze and investment ban targets across all financial sanctions’ regimes implemented in the UK. This list will close at 09:00GMT on Wednesday 28 January 2026 and from then the UK Sanctions List will be the only source for all UK sanctions designations. Guidance has been issued on moving to a single list for UK sanctions designations where you can read more about the changes. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.  

The UK Department of Business and Trade (DBT) has announced plans which seek to modernise Corporate Reporting requirements and make it easier for businesses to grow and invest. Some of the plans which DBT intend to bring forward include: An exemption for most medium-sized companies from the need to produce a Strategic Report. DBT have noted that this would mean that “medium-sized businesses who can benefit from existing exemptions will no longer need to prepare narrative reporting, so they can focus on running their business rather than producing information that is disproportionate to their scale and ownership model”. An exemption for wholly-owned subsidiaries from producing a strategic report if they are covered by the reporting of a UK parent. DBT have stated that this proposal would “eliminate duplicative reporting within corporate groups”. A removal of the requirement for preparing a Directors Report. The Department have noted that this report is often seen as a “cluttered, compliance-driven document that has accumulated numerous disclosures over time, which offers little useful insight for investors”. Under the proposal, some requirements which are deemed to be more useful, such as reporting on energy and emissions, would be retained and moved elsewhere in the Annual Report. In its announcement, the Minister for Small Business and Economic Transformation indicated his intention to deliver the proposed changes “as quickly as possible” In addition to the above proposals, DBT have announced an expansion of their non-financial reporting review to include financial reporting, remuneration reporting and governance reporting, as well as considering how reporting can be modernised for the digital age. In view of this expansion, the previously named “non-financial reporting review” will be renamed the “Modernisation of Corporate Reporting review”. To address this, DBT have announced its intention to hold a consultation on the corporate reporting framework next year. It has also issued a survey asking businesses to raise any issues they might have regarding regulation which is not fit for purpose.

Chartered Accountants Ireland has responded to the Financial Reporting Council's (FRC's) invitation to comment on the Practice Note (PN) Guidance for audits of smaller and/or less complex entities in the UK.  The FRC launched a consultation on a PN to support auditors in the application of International Standards of Auditing (ISAs) UK when auditing smaller and/or less complex entities. This consultation is part of the FRC’s year-long SME campaign.  As a general overarching point, Chartered Accountants Ireland does support the development of additional guidance in principle as small and medium-sized practices (SMPs) need to be able to apply ISAs UK in a scalable and proportionate manner given current challenges experienced in the small and medium-sized enterprise (SME) audit market. A key element of our response outlines that a more preferrable course of action (rather than introduction of a PN) would be to begin the process to adopt the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (‘ISA for LCE’), with public consultation on adoption of the ISA for LCE being a necessary step in the process.  Chartered Accountants Ireland has also responded to specific FRC consultation questions outlining enhancements and changes needed to the current version of the PN.  The main item we highlight throughout our response to the consultation relates to the fact that the PN, in its current form, is difficult to apply and use due to the lack of alignment mapping to the underlying ISAs, which would aid ease of reference when navigating the ISAs and would help SMPs apply ISAs in a more scalable and proportionate manner. In addition, we have recommended certain enhancements to the PN content and wording including examples provided in the PN to support SMPs with implementing the guidance more effectively and proportionately particularly in the context of the following ISAs: ISA (UK) 315 Identifying and Assessing the Risks of Material Misstatement ISA (UK) 240 Fraud ISA (UK) 500 Audit Evidence ISA (UK) 570 Going Concern ISA (UK) 540 Estimates ISA (UK) 330 Auditor’s Responses to Assessed Risks ISA (UK) 600 Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors) Revised Ethical Standard 2024

From the Professional Accountancy team…... The Apply AI Strategy was launched in October 2025 by the European Commission. It aims to harness AI’s transformative potential by increasing and supporting AI adoption and integration across key industrial and public sectors, especially among small and medium-sized enterprises (SMEs). The Strategy encourages an AI first policy where AI is considered as a potential solution whenever organisations make strategic or policy decisions, taking into careful consideration the benefits and the risks of the technology.  The European Commission has also launched the AI Act Single Information Platform and the AI Act Service Desk to support implementation of the AI Act and to provide resources and tools regarding the AI Act requirements.           

Chartered Accountants Ireland has responded to the International Accounting Standards Board’s (IASB’s) request for information on the post-implementation review of IFRS 16- Leases. IFRS 16 came into effect in January 2019 and the IASB, in line with their due process procedures, are conducting a review of the standard to assess whether it is broadly working as intended for investors, companies, auditors and regulators. In its response to this request for information, the Institute’s Financial Reporting Technical Committee noted that IFRS 16 was “operating well for the vast majority of leases and that it has led to an improvement in financial reporting”. The Committee also highlighted some areas where the requirements of IFRS 16 remain unclear and where clarifications and additional guidance would be beneficial. Some of these areas include. Clarification in relation to some sale and leaseback scenarios, including sales in a corporate wrapper. Clarification regarding lessor accounting, including some scenarios where inappropriate accounting outcomes might arise. The impact that inflation may have on discount rates used, which is of particular relevance in today’s environment. Interaction between IFRS 9 and IFRS 16. Clarification regarding “in-substance fixed payments”, including the need for guidance regarding assets that generate nature-dependent electricity. The treatment of non-monetary consideration for leases (such as rental payments being based on potential produce from leased land).