Welcome to this week’s Technical Roundup.
In case you missed it over the Summer….
The Institute has issued Technical Alert 05/2023 Questions and answers on the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards. The Technical Alert provides members with some information about the Corporate Sustainability Reporting Directive (CSRD) and explains when and how members may be impacted by it.
The Institute has released Technical Release 02 2023 Solicitors Accounts Regulations 2023. This publication has been jointly developed by the member bodies of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I). The Law Society have recently introduced new Solicitors Accounts Regulations, which came into operation on 1 July 2023, and apply to accounting periods beginning on or after that date. TR 02/2023 is intended to provide information for members undertaking reporting engagements in accordance with the Regulations. It replaces Technical Release 01/2016 Solicitors Accounts Regulations 2014 – Republic of Ireland. The Technical Release summarises some of the key requirements of the Regulations which are available on the website of the Law Society of Ireland.
Read more on these and other developments that may be of interest to members below.
Financial Reporting
The FRC issued amendments to FRS 101 and FRS 102 relating to the OECD's Pillar Two model rules. These amendments mirror similar changes made at international level to IAS 12 Income Taxes and introduce a temporary exception to accounting for deferred taxes arising from the implementation of the Pillar Two model rules, alongside targeted disclosure requirements.
The Financial Reporting Technical Committee of Chartered Accountants Ireland issued its response to the International Accounting Standards Board’s Exposure Draft Amendments to the Classification and Measurement of Financial Instruments Proposed amendments to IFRS 9 and IFRS 7.
The Financial Reporting Council (FRC) has published the 21st edition of its Key Facts and Trends (KFAT) report, providing the latest statistical information and trends on the UK accountancy and audit profession.
The FRC will be hosting some roundtables throughout September to gain stakeholder views on the new corporate reporting requirements.
EFRAG has published its Final Comment Letter in response to the IASB's Exposure Draft 2023/2 Amendments to the Classification and Measurement of Financial Instruments (Proposed amendments to IFRS 9 and IFRS 7) (‘the ED’).
The International Accounting Standards Board (IASB) has concluded its decision-making on two projects—its final steps before drafting and balloting two new IFRS Accounting Standards. The first of these forthcoming Accounting Standards is designed to clarify and enhance information companies provide about their financial performance. The other will simplify the financial statements prepared by subsidiaries of listed groups.
Audit
IAASA has published guidelines for the Recognised Accountancy Bodies to apply to their approval and resignation function in respect of Statutory Auditors and Audit Firms. These are effective from 1 June 2024.
Sustainability
In July, the Institute issued its response to the European Commission’s request for Feedback on its Draft Delegated Act.
Following its consideration of the various responses to the request for feedback, the European Commission (EC) adopted the European Sustainability Reporting Standards (ESRS) on 31 July 2023. This marks a significant milestone in the development of European Sustainability Reporting Standards. The standard will enter into force following its publication in the Official Journal of the European Union and the first wave of entities will report under the ESRS for periods commencing on or after 1 January 2024. The reporting requirements will then be phased-in over the subsequent years to various company types and sizes.
Accountancy Europe and the International Federation of Accountants (IFAC) are bringing together a diverse range of stakeholders to discuss the regulatory, policy and standard-setting path toward high-quality sustainability assurance and the main matters covered within the IAASB’s proposed standard. This in person event takes place on 3 October at the Accountancy Europe offices in Brussels.
The IAASB issued the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation on August 2. When approved, ISSA 5000 will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe. It will apply to sustainability information reported about any appropriate sustainability matter and prepared under any suitable framework. It will also apply for both limited and reasonable assurance engagements.
The Financial Reporting Council (FRC) Lab has published a new report titled “ESG Data Distribution and Consumption” examining how investors obtain and use environmental, social and governance
The Financial Reporting Council (FRC) has also published a thematic review, assessing the quality and maturity of climate-related metrics and targets disclosures.
The International Organization of Securities Commissions (IOSCO) has announced its endorsement of the International Sustainability Standards Board’s (ISSB) Standards following its comprehensive review of the Standards.
Other News
The Financial Reporting Council (FRC) has welcomed the Government’s publication of the draft statutory instrument on corporate reporting, which strengthens reporting requirements for very large companies in the UK.
In August, the Financial Reporting Council has published the 21st edition of its Key Facts and Trends (KFAT) report, providing the latest statistical information and trends on the UK accountancy and audit profession; the International Auditing and Assurance Standards Board has issued the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation.
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its latest edition of the Spotlight on Markets Newsletter.
The Department for Communities has announced the appointment of Gerard McCurdy as the new Chief Commissioner to the Board of the Charity Commission for Northern Ireland from 1 September 2023 to 31 August 2028. Mr McCurdy has served on the Board since 1 March 2019 as the Deputy Chief Commissioner and as the Interim Chief Commissioner from December 2022.
The Central Bank of Ireland is inviting feedback from stakeholders after publishing a discussion paper on an approach to developing a macroprudential policy framework for investment funds. The publication aims to advance the ongoing international and European discussions on how a macroprudential perspective in the regulation of the funds sector could be achieved. It outlines key considerations for developing and operationalising such a framework. The closing date for submissions is 15 November.
Minister Kevin Hollinrake, on behalf of the Department of Business and Trade, has announced the appointment of Richard Moriarty as CEO of the Financial Reporting Council (FRC), succeeding Sir Jon Thompson.
The European Securities and Markets Authority (ESMA) has published a Report on Suspicious Transactions and Order Reports (STORs). The report provides an overview of how STORs are used across different jurisdictions in the context of the detection and investigation of market abuse, and how their use has evolved over time.
In July, IAASA responded to the IESBA (International Ethics Standards Board for Accountants) consultation on its Proposed Strategy and Work Plan, 2024-2027.
The European Commission is adopting a package of infringement decisions due to the absence of communication by Member States of measures taken to transpose EU directives into national law
For further technical information and updates please visit the Technical Hub on the Institute website.
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