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The European Financial Reporting Advisory Group (EFRAG) has published the eagerly awaited draft simplified European Sustainability Reporting Standards (ESRS), along with its technical advice to the European Commission. In its press release, EFRAG have highlighted many of the simplifications implemented which it hopes will help reporting companies integrate sustainability reporting into their business. The simplifications which EFRAG have noted include:  Standards which are “shorter, clearer, easier to understand and to implement” A 61% reduction of datapoints that are required if material Deletion of all voluntary disclosures Substantial reliefs, proportionality mechanisms and ad hoc phasing-in for challenging disclosures Principles based standards for narrative disclosures An emphasis on fair presentation A simplified materiality assessment Measures to reduce pressure in relation to data collection in the value chain Enhanced interoperability with the ISSB standards, with common disclosures preserved where possible    The European Commission will now prepare a Delegated Act to revise the first set of ESRS’s based on EFRAG’s technical advice. Also, on 4 December EFRAG launched the ESRS Knowledge Hub, an interactive online platform designed to support companies, practitioners and stakeholders in navigating the European Sustainability Reporting Standards (ESRS) and broader sustainability reporting materials developed by EFRAG. First time users can click the link to go to the landing page and register to log -in.   

Welcome to the latest edition of Technical Roundup.  In developments since the last edition, IAASA has published its Work Programme for 2026-2028, Accountancy Europe has published a new paper which looks at third party ownership in the European accounting sector and EFRAG has published its eagerly awaited draft simplified European Sustainability Reporting Standards.  Read more on these and other developments that may be of interest to members below.  Financial Reporting   Chartered Accountants Ireland has responded to the IFRS Interpretations Committee (IFRIC) Tentative Agenda Decision on Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18). In its submission, the Institute highlighted its concerns regarding the Tentative Agenda Decision and encouraged IFRIC to undertake additional technical analysis on the issue to decide whether standard setting on this matter is necessary.  The European Financial Reporting Advisory Board (EFRAG) has updated its Endorsement Status Report to reflect the recent amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Currency.  The International Accounting Standards Board (IASB) has issued its November 2025 update and podcast.  The IASB has issued illustrative examples which demonstrate how companies can apply IFRS Standards when reporting the effects of uncertainties in their financial statements.  In its recently published Exposure Draft entitled “Risk Mitigation Accounting Proposed amendments to IFRS 9 and IFRS 7”, the IASB has proposed a new accounting model which it hopes will “better reflect how financial institutions manage interest rate risk throughout their portfolios”. The Exposure Draft remains open for public comment until 31 July 2026.  As part of its work in response to the IASB research project on the Statement of Cash Flows and Related Matters, the UK Endorsement Board has published its fifth research paper on the topic. This paper covers the prevalence of net debt disclosures globally, their importance to users of financial statements, and how the IASB might improve the accessibility and comparability of this key financial performance metric.  The International Public Sector Accounting Standards Board (IPSASB) has issued an updated IPSAS 33 ‘First-time Adoption of Accrual Basis International Public Sector Accounting Standards’.  Auditing and Assurance  The Irish Auditing & Accounting Supervisory Authority (IAASA) has recently published its Work Programme for 2026–2028.   The Financial Reporting Council (FRC) has published its annual 'Audit Market and competition developments' report, showing that initiatives to promote a more resilient and competitive audit market have supported firms outside of the Big Four to build their share of Public Interest Entity (PIE) audit engagements.  Sustainability  EFRAG has published the eagerly awaited draft simplified European Sustainability Reporting Standards (ESRS), along with its technical advice to the European Commission. In its press release, EFRAG have highlighted many of the simplifications implemented which it hopes will help reporting companies integrate sustainability reporting into their business. The simplifications noted by EFRAG include:  Standards which are “shorter, clearer, easier to understand and to implement”  A 61% reduction of datapoints that are required if material  Deletion of all voluntary disclosures  An emphasis on fair presentation  A simplified materiality assessment  Measures to reduce pressure in relation to data collection in the value chain  Enhanced interoperability with the ISSB standards, with common disclosures preserved where possible  Also, on 4 December EFRAG launched the ESRS Knowledge Hub, an interactive online platform designed to support companies, practitioners and stakeholders in navigating the European Sustainability Reporting Standards (ESRS) and broader sustainability reporting materials developed by EFRAG. First time users can click the link to go to the landing page and register to log -in.  Anti-money laundering and sanctions  Bruna Szego, Chair of AMLA, appeared before the ECON and LIBE Committees of the European Parliament on 2 December 2025 in Brussels, presenting the Authority’s progress, outlining priorities, and responding to MEPs questions on a range of topics. A full recording of the hearing can be viewed at the following link.  The European Parliament published an in-depth analysis regarding the 'Future of Anti-Money Laundering in the European Union' covering AMLA’s institutional mandate, its interaction with national and EU authorities, and its potential evolution in a digitalised financial environment.   In the UK, on December 17 from 11am to 12pm GMT the Foreign, Commonwealth & Development Office and Office of Financial Sanctions Implementation are holding a free webinar about upcoming changes to the UK Consolidated List and UK Sanctions List. In this webinar they will be discussing the change taking place on the 28 January 2026, an explanation of what improvements are being made to the UK Sanctions List and its search tool and steps to take to ensure you are prepared.  Central Bank of Ireland (CBI)  The CBI hosted the fourth annual Financial System Conference on November 25. At the opening of the conference, Governor Gabriel Makhlouf delivered a speech regarding 'Better Rules, Better Outcomes: The Next Evolution in Financial Regulation'.   The CBI welcomed the announcement by the Tánaiste and Minister for Finance regarding legislation relating to the Finance (Provision of Access to Cash Infrastructure) Act 2025. For more details regarding this legislation, please refer to the following link.  Following a consultation earlier this year, the CBI published updates regarding the Fitness and Probity area including a Feedback Statement and the revised Guidance on Standards of Fitness and Probity.   The CBI published the Investment Firm and Intermediary Newsletter. The newsletter includes updates regarding a recent operational resilience thematic risk assessment, implementation of the Individual Accountability Framework (IAF), financial scams and fraud, and the Consumer Protection Code 2025.  The CBI's Deputy Governor Colm Kincaid delivered a speech regarding 'Strengthening Consumer Protection and Supervision in an Increasingly Digitalised World' at the joint International Financial Consumer Protection Organisation (FinCoNet) and Central Bank of Ireland international seminar. This seminar was held as part of the recent 2025 Annual General meeting of FinCoNet in Dublin.   The CBI announced the publication of a report regarding 'Retail Investor Participation in Ireland - Consumer Research and Analysis', which concludes that Irish households are not realising the full benefit of investment options. The report outlines that Ireland has among the lowest levels of direct retail participation in capital markets in the EU, with people tending to prefer to hold their wealth in property, life assurance and pensions, and the fact that Ireland does not yet have all the key factors to success in place to support retail investment.  The CBI's Deputy Governor Vasileios Madouros delivered a speech at the Climate Finance week outlining the macro financial effects of climate change in Ireland. The speech also focused on outlining the fact that progress towards decarbonisation has been slower than intended by the Paris Agreement and highlighted the continued focus of the CBI on climate change and associated risks despite shifting priorities globally.   The CBI's Deputy Governor Colm Kincaid addressed the Joint Oireachtas Committee on Finance, Public Expenditure, Public Service Reform and Digitalisation regarding digital banking focusing on the work of the CBI in the area of digital frauds and scams, and the CBI's evolving approach to supervising financial services provided digitally. For details of the speech, please refer to the following link.   Artificial Intelligence  The European Banking Authority (EBA) published an update regarding the 'AI Act: implications for the EU banking and payments sector', which includes an AI Act mapping exercise.  Cybersecurity  The NCSC in Ireland launched its 2025 National Cyber Risk Assessment. This is a comprehensive review of the cyber threats, systemic risks, and sectoral vulnerabilities facing the State and highlights increasingly sophisticated nation-state activity, the accelerating pace of cybercrime, and growing likelihood of cascading impacts across interconnected sectors. The 2025 National Cyber Risk Assessment is available at the following link.  The National Cyber Security Centre (NCSC) in Ireland published an alert regarding critical vulnerabilities in the Mattermost 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 Mattermost.  The NCSC in the UK recently published an article calling for all small businesses to act in relation to cybersecurity including using the NCSC's Cyber Action Toolkit.   A report was published by Munster Technological University (MTU) regarding 'SME Cyber Resilience - State of the Sector 2025' in collaboration with the NCSC in Ireland. The report concludes that Ireland's small and medium enterprises (SMEs) face a critical cyber resilience gap.  Other news  The Charity Commission for Northern Ireland will hold its annual public meeting on Thursday, 22 January 2026 from 10.30am to 12.30pm at Malone House, Barnett Demesne, Belfast, BT9 5PB.  Minister of State for Trade Promotion, Artificial Intelligence and Digital Transformation Niamh Smyth recently announced the launch of a public consultation on proposed changes to the Companies Act 2014 and related legislation.  The consultation remains open until 5pm on Friday, 19 December 2025.The consultation arose from a September 2025 report from the Irish Company Law Review Group on the review of the provisions pertaining to the disclosure of an officer’s residential addresses having regard to company transparency requirements and GDPR. That report was published in November 2025.  The Corporate Enforcement Authority (CEA) has issued their November 2025 newsletter which includes updates on recent events and advocacy work, also the latest developments in company law.   The European Central Bank (ECB) has published their Consumer Expectations Survey results for October 2025.  Accountancy Europe has issued a paper entitled “Beyond Private Equity: Third-party ownership in the accountancy and audit sector”. This paper looks at how third-party ownership, including Private Equity, is reshaping the European accountancy and audit sector.  The Department of Enterprise, Tourism and Employment has carried out a periodic critical review of IAASA, as required by the Code of Conduct for the Governance of State Bodies. This report outlines that IAASA is performing well in undertaking its standard setting, supervisory enforcement and advisory functions and set out some recommendations for the Authority.  The European Parliament and Council of the European Union negotiators announced a provisional agreement on the Payment Services Regulation and the Third Payment Services Directive (PSD3). The deal focuses on a more open and competitive EU payment services sector, with strong defences against fraud and data breaches to focus on more protection from online fraud and hidden fees. In terms of next steps, the deal needs to be formally adopted by the Parliament and Council before it can come into force with exact implementation timelines not yet confirmed. The Banking and Payments Federation Ireland (BPFI) also published a statement welcoming the provisional agreement of the EU Payment Services Regulation (PSR).  The European Commission recently announced the 'European 2030 Consumer Agenda', which focuses on the strategic vision for EU consumer policy. The agenda focuses on an action plan for consumers in the Single Market, digital fairness and consumer protection online, stronger enforcement, and sustainable consumption. For details of the agenda, please refer to the attached document and factsheet.   The European Central Bank (ECB) has published a press release outlining an overview of financial stability vulnerabilities for the Euro area, which are included in the ECB's November 2025 Financial Stability Review. The review highlights that financial stability vulnerabilities remain elevated given uncertainty over geoeconomic trends and tariff impacts.   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.  

In November 2025, the Financial Conduct Authority (FCA), published findings from a 2025 FCA multi-firm review focusing on business-wide risk assessment and customer risk assessment processes. The FCA fed back its findings on firms identifying, understanding and assessing risk, mitigating risk and managing risk. The findings highlight good and poor practice to help firms reflect on how they are meeting the existing risk assessment requirements. While firms involved in this review are part of FCA regulated population such as building societies, e-money payments firms and wealth management firms, there are general learnings which can be taken from the findings. 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.      

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.