Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month.
In developments since the last edition, Accountancy Europe has issued the latest in its series of publications summarising the European Sustainability Reporting Standards (ESRS) provisions and sharing views on ESRS aspects that merit further guidance and clarification. Legislation has been signed in Ireland to change the rules regarding the loss of audit exemption in certain circumstances.
Read more on these and other developments that may be of interest to members below.
Audit and Assurance
The IAASB has published the much anticipated ISSA 5000 International Standard on Sustainability Assurance 5000, General Requirements for Sustainability Assurance Engagements.
This standard is a comprehensive, stand-alone standard suitable for any sustainability assurance engagement. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. The standard is also profession agnostic, supporting its use by professional accountants and non-accountant assurance practitioners. The draft standard was subject to a public consultation in 2023 and Chartered Accountants Ireland's response can be read here.
IAASA has recently uploaded the recording of its Audit Committee Briefing 2024 held on 22 October 2024 to its YouTube channel. You can click to view the briefing here. The presenters at the briefing covered the topic of sustainability, including developments in sustainability reporting Q&A, a regulatory update, an audit committee panel session and artificial intelligence for audit committees.
The FRC has published the criteria to assess local audit specialist training developed by Recognised Qualifying Bodies (RQBs), training providers and audit firms.
Financial Reporting
On 1st November, IAASA hosted a conference at Maynooth University entitled ‘Integrating Sustainability Reporting and Assurance into Accounting Education’. Slides from the event are available here.
The International Accounting Standards Board (IASB) has launched surveys on the accounting requirements for intangible assets. This includes separate surveys for investors and companies. These will remain open until 30 November 2024.
EFRAG has published its draft comment letter on the International Accounting Standards Board’s Exposure Draft on the Equity Method of Accounting. Comments are welcomed by 6 January 2025.
In its recent publication entitled “Empowering SMEs through IP: insights and strategies from the ground”, Accountancy Europe discuss the importance of the protection, by SME’s, of their brand and ideas.
The Financial Reporting Council has announced the launch of a consultation on Actuarial Standard Technical Memorandum 1 (AS TM1).
The 2024 IFRS Foundation Integrated Thinking and Reporting Conference took place on 18 October in Milan. The event convened stakeholders from around the world to discuss the value of integrated reporting. The IFRS have published six takeaways from the event.
The International Accounting Standards Board (IASB) has published a consultation aimed at improving the requirements for recognising and measuring provisions on company balance sheets. The consultation proposes changes to IAS 37 and remains open for public comment until 12 March 2025.
ESMA, the European Securities and Markets Authority has published the latest edition of its Spotlight on Markets Newsletter.
The EFRAG 2024 Conference Advancing Transparency & Competitiveness in Challenging Times is taking place on 10 December 2024 in Brussels and virtually.
The FRC has launched its consultation on significant updates to the UK Stewardship Code focusing on supporting economic growth and investment and delivering increased transparency for investors, savers and pensioners in the UK. A webinar will be held by the FRC on 20th November to discuss the proposals.
Sustainability
Accountancy Europe has issued a series of publications summarising the European Sustainability Reporting Standards (ESRS) provisions and sharing views on ESRS aspects that merit further guidance and clarification. The most recent in this series covers interoperability.
The International Sustainability Standards Board (ISSB) are hosting episode five of their webinar series Perspectives on sustainability disclosure on 25 November, which summarises developments and considerations as companies prepare for assurance of sustainability disclosures.
A report, which was prepared by the IFRS Foundation and presented to the Financial Stability Board, highlights that over 1,000 companies have referenced the International Sustainability Standards Board in their reports and 30 jurisdictions are making progress towards the introduction of the International Sustainability Standards in their legal frameworks.
EFRAG are holding webinars on the European Sustainability Reporting Standards (ESRS) for non-EU groups. These will be held on the 19th and 20th November.
EFRAG and CDP, the global independent disclosure system for companies to measure and manage their environmental impacts, have announced that they have achieved extensive commonality between the CDP and ESRS. This follows ongoing collaboration between both organisations on their shared goals.
Irish Companies Registration Office
Two matters readers should note; the CRO has reminded filers that companies with an ARD of 30 September have a filing deadline of Monday 25 November. Please click to read the CRO reminder on peak filing. Also, the CRO has issued information about its Christmas 2024 Deadlines: applications should be no later than the following dates and all applications will be processed in strict date order.:
– Fé Phráinn Online Scheme: 9 December 2024
– Ordinary Online Scheme: 2 December 2024
– Change of Name: 9 December 2024
– Re-registration: 9 December 2024
– Company Name Reservation: 15 December 2024.
Economic Crime and anti-money laundering
The Failure to Prevent Fraud offence was introduced in section 199 of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). The Act provides that the Secretary of State must issue guidance about procedures before the provisions come into force. This guidance to organisations on the offence of failure to prevent fraud has now been issued (as of 6 November 2024). The guidance states that the offence will come into effect nine months after the publication of this guidance, to allow organisations to develop and implement their fraud prevention procedures.
A reminder of what the Failure to Prevent Fraud offence is. The legislation will apply to large organisations where an associate of the organisation commits any of the offences listed in schedule 13 of the ECCTA (for example, cheating the public revenue or false accounting) with the intention of benefitting the organisation and the organisation did not have in place reasonable fraud prevention procedures. The large organisations to which the legislation will apply align with the thresholds in the Companies Act 2006. In short, a large organisation is one satisfying two or more of the following conditions: turnover of more than £36 million; balance sheet total of more than £18 million; or more than 250 employees. Readers should be mindful that there are proposals to uplift the monetary thresholds under company law.
Digital, Cyber, Artificial Intelligence (AI), Crypto
The European Council this month approved the European Court of Auditors’ Special report 08/2024: EU Artificial intelligence ambition which concluded that stronger governance and increased, more focused investment is essential going forward aiming to strengthen EU’s AI ambitions. Click here for the press release and here for details of the Council’s conclusions on the report.
On the domestic front, Ireland’s first National Artificial Intelligence (AI) Strategy, 'AI – Here for Good' which was launched in July 2021 has been given a refresh this month. The refresh takes account of the significant developments in AI technology and regulation since the original strategy was published in 2021. Please click to read the press release about some of the new measures which include establishing an AI regulatory sandbox to foster innovation in AI and updating the 2022 study on AI skills of the Expert Group on Future Skills Needs. Click here to access a copy of the 2024 Refresh.
This week Minister of State at the Department of the Environment, Climate and Communications, published the inaugural National Cyber Security Annual Update 2023, which provides a broad overview of the work that was carried out across Government in 2023. He also launched the NCC-IE Cyber Security Improvement Grant for SMEs, a €2 million fund aimed at supporting small and medium enterprises (SMEs) in Ireland as they enhance their cybersecurity. You can read more about the grant here.
Please click to read remarks by Central Bank Director of Financial Regulation, Policy and Risk Gerry Cross, at a DORA Industry Briefing in November 2024 in which he outlines where they are now in relation to DORA as well as a bit of DORA background.
In November 2024 the Minister for Finance gave effect to EU regulation on Markets in Crypto-Assets by enacting SI 607/2024 which designates the Central Bank of Ireland as the National Competent Authority, outlines the administrative penalties and measures for Regulated and non-Regulated Financial Service Providers and specifies the duration of the transition period for firms that provided crypto services before 30 December 2024.
Central Bank of Ireland (CBI)
Click here to read the CBI Governor’s blog on the Central Bank’s strategy 2024.
CBI is holding its Financial System Conference 2024 “Delivering a well-functioning financial system to support a changing economy” on 18 November 2024. In-person registration is closed but readers just about have time to register online. See details here. It opens with a fireside chat with Paschal Donohoe TD and Minister for Public Expenditure and Reform and also has sessions on the Future of Financial Services in Ireland and Europe and the Future of Payments.
Legislation
Dara Calleary TD, Minister of State for Trade Promotion, Digital and Company Regulation, has announced that preparatory work for the commencement of the Screening of Third Country Transactions Act 2023 is nearing completion and it is anticipated that the Act will be commenced in early January 2025. Please click for an Institute news item on the legislation in November 2023 at the time the Act was passed.
New Irish Company Law provisions:
The President signed the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 into law on 12 November 2024. Provisions which will be of interest to our members were outlined in our news item in March 2024 following publication of the general scheme of the Bill. These include changes in the rules regarding loss of audit exemption, provisions relating to receivers, some new grounds for company strike-off and provisions regarding registered office and electronic filing agents. Following publication of the draft Bill in August 2024 we did a further update on the Bill noting that most but not all of the provisions of the General Scheme had been included in the Bill. Click for the August 2024 updated news item. At the time of writing, publication of the legislation on the Irish Statute Book as passed and details of its commencement into law is awaited and we will provide further updates when information on this is made available. Click here for a statement from the Corporate Enforcement Authority which welcomed the passage of the legislation containing enhancements to existing legislation including for example the extension of the list of competent State bodies with which the CEA can share information.
Other
The Minister for Public Expenditure, NDP Delivery and Reform, recently published the Prospects 2024-2025 report which highlights 50 projects that make up Project Ireland 2040. This report aims to provide further visibility on Ireland’s priority infrastructure over the coming years, facilitating firms to plan commercial bids for these major infrastructure projects.
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.
LOADING...