Accountancy Plus The Official Journal of CPA Ireland - An Economic Strategy for Ireland
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June Issue 2021
Accountancy Plus
The Official Journal of CPA Ireland
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itisation te Work mic Reco
An
Economic
Strategy for
Ireland
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1
Editorial President’s Message
PRESIDENT’S MESSAGE
Accountancy Plus Welcome to the June 2021 edition
June 2021 of Accountancy Plus.
It gives me great pleasure to be writing my Technology and sustainability often go hand
first President’s Message for the June edition in hand as advances in technology can
CPA Ireland of Accountancy Plus. It is a privilege to serve remove processes and minimise the impact
the Institute at this level and to give something on the environment. For example, just over
17 Harcourt Street, back to CPA Ireland as my CPA qualification has 12 months ago, CPA Ireland was deferring its
served me so well. I look forward to meeting April examinations due to the impact of the
Dublin 2, D02 W963
with you, hopefully in person, and working with pandemic. Fast forward to now, and we have
many of you over the coming months. I’d like pivoted to online examinations which are
T: 01 425 1000 to thank John Devaney for leading CPA Ireland invigilated through artificial intelligence.
F: 01 425 1001 through such a turbulent time and I want to No travel requirements for students, no couriers,
continue building on the excellent work that no paper, and a much leaner process map
Unit 3, John and the many Presidents before him have which can see examiners marking scripts within
done. hours of exam completion.
The Old Gasworks,
Kilmorey Street, I am conscious of the unique contribution The benefits of this change in process are
Newry, BT34 2DH made by each and every Past President of measurable, are customer centric and are
CPA Ireland and I was sad to hear that Norman sustainable in terms of the positive impact
Adams (Malahide) passed away last month. on the environment. When we speak about
T: +44 (0) 28 3025 2771 May Norman rest in peace. agility and adaptability, we do not have to look
W: www.cpaireland.ie further than CPA Ireland for some excellent
There are a number of core issues that
E: cpa@cpaireland.ie examples!
I would like to highlight during my term of
office as President of CPA Ireland. Technology, Turning to the world of work and taking
Editor sustainability, the world of work and recovery account of the acceleration in remote working
Patricia O’Neill readiness are all the major themes which the due to the pandemic, we now appreciate that
Council and executive team are taking account remote working is here to stay. CPA Ireland
of in terms of service delivery and providing will provide, and is already providing in many
Chief Executive
value for members in 2021 and beyond. respects, the supports for members and
Eamonn Siggins students to thrive in the new world of work.
The accountancy profession is, in every respect,
We look forward to a greater emphasis on
not going to do things differently but will do
Editorial Adviser support for CPAs as individuals who are facing
entirely different things. Already, technology
Róisín McEntee the challenge of separating work from life in
is augmenting the role of the accountancy
this new world of work. Social isolation,
profession. The enforced shift to remote
motivation, engagement, and the power to
Technical Adviser working in 2020 has accelerated the
switch off, to disengage and to be mindful
Alan Bailie requirement for digital skills, and for CPAs and
of self are all themes that will be supported
the businesses we serve to take best advantage
strongly by CPA Ireland.
of technology. We are well placed in CPA
Advertising Ireland, with great support from Skillnet Ireland, Recovery readiness will be informed by the
Ciara Durham to offer our members a suite of services in insightful perspectives of CPAs who hold a
T: 086 852 3463 2021 to facilitate digital skills enhancement unique position as advisers, to over 100,000
E: accountancyplus@gmail.com to whatever extent an individual CPA requires. businesses across Ireland. The economic
forecasts, post pandemic, are positive but we
Sustainability, including environmental,
know from experience that economic
Published by social and governance issues, has moved
recovery can be an unequal experience.
Nine Rivers Media Ltd. to the top of the global agenda. In April we
As CPAs we will advocate for measures that
saw the European Union launch a Directive
T: 01 667 5900 spread that economic recovery across every
on Corporate Sustainability Reporting and
E: gary@ninerivers.ie sector and into every area.
this will change the landscape for business
reporting in Europe. The move from voluntary Like everybody, I look forward to brighter days
Printed by reporting by multinationals is swiftly changing ahead when we can convene physically and
Persona to global standards on sustainability reporting, interact socially. John described himself as our
which will be proportionate and scalable for first virtual President and it would be nice to
the SME sector. think that John will be our only virtual President!
Distribution
Lettershop Services Ltd. We are already seeing shifts in the marketplace For my own part, I hope to be a hybrid
where lending institutions and multinationals President combining the best of what we
are asking SMEs to demonstrate their have learned from operating virtually with
commitment to sustainability, before the dynamic benefits of meeting, engaging,
either lending or transacting business. The listening, and learning in each other’s company.
developments in sustainability reporting are
progressing at pace and the demands for
non-financial information about business
performance will, certainly, become the norm.
Who better to give assurance on every aspect
Áine Collins
of business performance than CPAs?
President CPA Ireland
Accountancy Plus June Issue 2021
Contents
Institute Finance & Management In Practice
President’s Message 01 Finance & Management In Practice News 36
18
News
Digital Transformation:
Institute News 52
The Digital Operational the good, the bad and the
37
Resilience Act (DORA) regulated
Publication Notices 61
- bigger, better, faster, 19 Caroline McCarthy
stronger
Rois Ni Thuama ISA (Ireland) 540 (Revised
CPA Profile December 2018) Auditing
Accounting Estimates and 40
Carla Manning 07 Resilience & Recovery:
Related Disclosures
Beyond Doom & Gloom 22
Colm Divilly
Áine Kiely O’Donnell 08 Ronan Foley
The important role
CPD Personal Development
accountants have to play
in sustainable finance 25
News & Events 56 Gaining Respect
Sarah Moran &
Paddy Molony in the Workplace 43
Ben Rawal
Student
Student News 60
Taxation
IT
Tax News 30
Opinion Digitising your Practice
46
Alan FitzGerald
New VAT
An Economic Strategy
e-Commerce Rules
for Ireland – An Ansoff 31
03 Brendan Lynch and Why accounting firms
Matrix Review need to use Desktop as a
Michael Brennan
Susan Hayes Culleton 50
Service (DaaS)
Matthew Chell
Non-Irish Employments
Financial Reporting Exercised in the State –
Payroll and Income Tax 34
Financial Reporting News 10 Implications
James Bradley
Law & Regulation
Law & Regulation News 12
Ensuring a Safe Return
to Work: Employees &
13
Covid-19 Vaccine
Derek McKay
Ireland – 5th Anti-Money
Laundering Directive 15
Henry Duggan
03
An Economic Strategy for Ireland
An Economic Strategy for Ireland by Susan Hayes Culleton
OPINION
An Ansoff Matrix Review
by Susan Hayes Culleton, “The Positive Economist”
Many of us are accustomed to strategic thinking, strategic reviews and critiquing strategy within
our organisations. However, what if we were to frame the Irish economy through a strategic lens?
During this article, I encourage you to come with me on a journey around the Ansoff Matrix whilst
positioning yourself as the CEO of Ireland Inc. Let’s focus entirely on what might be possible with
a view to dedicating resources where they could be most effectively invested for the economic
betterment of all.
The Ansoff Matrix is used to
determine a product and market
Ansoff Matrix - 2021 Strategy
growth strategy. There are four
quadrants:
Market Diversification
• market penetration (what you’re Development
doing well and should keep doing) Innovation
• market development (take an Rural Ireland
Digital Sustainability
existing product and sell it to a new
market)
• product development (take an
existing market and develop a new Market Penetration Product
product to sell to it) Agriculture Global Irish
Development
• diversification (build a new product Pharma Exports Small Business
Ecommerce
and sell it to a new market) Foreign Direct
Tourism
Investment
Market Penetration
Let’s begin by examining what Ireland
is good at doing and the evidence
This represents 37% of the value of average Irish salary of €40k as
of same. According to the “Annual
total exports”. per Jobted) and for every ten jobs
Review and Outlook for Agriculture,
created by FDI in Ireland, 8 more jobs
Food and the Marine 2020”, the
The reach of the Global Irish extends are generated in the wider economy.
Agri-food sector provides between
into every nook and cranny of the
10% and 14% of employment outside
world. The Department of Foreign In the “Significance of the SME Sector
of Dublin and the mid-east region.
Affairs, Enterprise Ireland, Bord Bia, in the Irish Economy” report prepared
Furthermore, the sector purchased
Tourism Ireland, Irish Development by Jim Power, Small and Medium
the majority or 78.6% of its materials
Authority and others collectively have Enterprises across Ireland employ
in Ireland in 2018 and almost
an extensive geographic footprint. 1.06 million people in Ireland and
90% of the food produced in the
There are many other Irish business the latest Global Entrepreneurship
country is exported to international
networks, international GAA teams Monitor quotes “Over 3,000 people
markets. Ireland is a global hub for
and Irish cultural societies dotted all started a new business every month
pharma and medtech, playing host
over the globe that offers a powerful, in Ireland in 2019 and the rate of
to 24 of the top 25 biggest players,
well-networked and welcoming early-stage entrepreneurial activity
including Johnson & Johnson,
springboard for cultivating observed was the highest it has ever
Roche, Pfizer, Novartis and AbbVie.
international relationships. Our been since we began to track rates.”
According to the CSO, “Exports
foreign direct investment approach
of Medical and pharmaceutical
is the envy of many other nations. Therefore, agriculture, export-led
products increased by €1,183 million
According to the latest IDA figures, industries, the Global Irish, foreign
(+35%) to €4,572 million in February
the average salary in new investments direct investment, and the SME sector
2021 compared with February 2020.
is €59,384 (in comparison to the have all contributed to the bedrock
Accountancy Plus June Issue 2021
04
of our economy since the turn of the The Google search term “shop local outpace that of in-store, we can see
century and throughout the “Covid” Ireland” increased by 540% in just these trends aren’t futuristic but of
year of 2020. So, where do we look one week in October, according the present. Ireland needs to develop
now to build the next economic to the search engine itself. its product so that it can sell to its
chapter of the Irish story? own market.
The Trading Online Voucher has
Product Development made a significant impact on Market Development
There has been a massive shift smaller businesses right around the The Irish economy has been
towards buying online and Irish country, but we need to not just characterised as open for decades
online revenue followed suit. enable payment on our website and as exports have brought us a release
According to Wolfgang Digital, optimise them for keywords but valve of economic woes in the past
“E-commerce revenue for retailers look at the bigger trends around the and offered a platform to domestic
grew by a seismic 159% in 2020. world. Voice eCommerce is now in businesses to thrive. However, the
To give this context, average annual many, many homes around Ireland Covid-19 lockdown pushed Ireland
growth from 2017 until 2019 had today (and how many of you can and the rest of the world into a great
been 32%.” Unfortunately, Irish now say you’ve asked Google Home social experiment. Could we really,
businesses haven’t had the capability or Alexa’s opinion on where to spend en masse, work from home? If so,
in place to fully capitalise upon your money?). Integration is now a could we work from anywhere? This
that growth and serve customers primary question for many online is rural Ireland’s opportunity. Lots
in the local market. A recent study businesses – imagine a smart fridge of people can have urban jobs and
from PayPal pointed out that “88% could order its own online shopping rural lifestyles. According to the Bank
of Irish consumers who shopped when it recognises that you’re of Ireland 2020 first-time buyers
online bought from websites outside running out of milk … and imagine survey more and more first-time
of Ireland during the last year and if it’s linked to your AirBnB account buyers were considering a wider
that better pricing, more choice so that when you arrive to your new range of properties and areas than
and greater availability is driving this accommodation, the fridge contents ever before with the number of first-
international shopping trend.” Even is a replica of that at home. If we look time buyers wanting to buy outside
worse, consumers in Ireland want to China, which this year eMarketer Dublin hitting a 5-year high of 73%.
to buy online from Irish retailers. predicts, will be the first country
ever where eCommerce spend will It’s incumbent now on the private
sector to create services, experiences
and employment opportunities to
support its “new” population. We’ve
seen this happen before. The “Wild
Atlantic Way” was a concept formed
in 2014 and the most recent Failte
Ireland Annual report identifies
that one in five jobs in the region
is dedicated to tourism before the
hospitality sector was shut down
in the country (… and a whole
other article could be dedicated
to an Ansoff Matrix review of this
sector). The Rural Regeneration and
Development Fund and the National
Remote Work Strategy is putting
public money, energy and attention
into this social and economic change
and it’s a unique chance that the
country has to get this right.
Diversification
Anybody that has studied the Ansoff
Matrix literature will tell you that
the “diversification” quadrant is the
riskiest of all. Taking a new product
to a new market is the one fraught
with uncertainty, but it’s also the one
where a rich reservoir of untapped,
or unseen by others, opportunity
Accountancy Plus June Issue 2021
05
may lie. Innovation is a word that we like, but we really
only want innovation that works out. As an entrepreneur
An Economic Strategy for Ireland by Susan Hayes Culleton
OPINION
that has pursued innovative ideas in over a decade in
business, I can tell you that it can be both expensive
and disheartening when the market says no to your
innovative idea… or else tells you to “come back when
you can prove success through other clients”.
There is an excellent stakeholder alignment that exists
Diploma in
in the entrepreneurial ecosystem called the “Innovative
Partnership”. A company can apply to Enterprise Ireland
Update
Forensic You
Accounting
to supply 60 – 80% of funding for an innovative idea
where the company itself provides the rest of the money.
The money is given to a research centre in an Irish
university to execute the idea. If a successful outcome
happens (i.e. the company licenses the Intellectual
Property or the tech developed), then a revenue stream
is agreed between the company and the university. The
beauty of this connection is the government bears the
upfront cost that could be too high risk for the company
and yet triggers the innovative activity needed to pipeline
jobs and exports. On the part of the commercial partner,
this initiative activates financial investment, commercial
acumen and the company’s treasured client book. The
university can offer good, interesting, and solid jobs to
its own graduates and see cutting edge research turn
into a product or service. Each stakeholder puts in what
they’re best placed to do and gets out what they’re most
interested in. If it doesn’t work out, then the financial
burden is shared but jobs have been created, taxes will Learn how an
have been paid and lessons have been learned along the
way. investigation works from
start to finish
In our own business, we participated in a two-year
Innovation Partnership which resulted in us licensing
a proprietary algorithm for active peer learning that
enables us to run highly engaging training and event
facilitation online in a world of digital fatigue. Little did Update You
we know it at the time, but it was the best preparation
we could have imagined for what was to come.
Moving from our micro example to the macro
Key Details:
economy, where can Ireland look for the mega trends?
In very broad terms, the answers are technology and Where: Dublin & via live stream
sustainability. In narrow terms, there are two roadmaps
When: September 2021 - March 2022
laid out for the world.
CPD: 40 hours
The first is the United Nations “Secretary General’s
Cost: 1550 (non-members 1750)
Roadmap for Digital Co-operation”. There are nine
key areas including “Supporting global cooperation
on artificial intelligence that is trustworthy, human Book now at:
rights based, safe and sustainable and promotes cpaireland.ie/forensic-accounting
peace” and “promoting digital public goods to unlock
a more equitable world—the internet’s open source,
public origins should be embraced and supported”.
Could Ireland be a global leader in machine learning,
Natural Language Processing or the Internet of
Things? Alternatively, could we turbo boost our digital
literacy right across all ages, spearhead open-source
development for learning or bridge inequality through
scalable tech reach?
Accountancy Plus June Issue 2021
The Disruptive Technologies consideration of every construction or resources they need to succeed
Innovation Fund has awarded €235m project, then we will know that as measured by their own version of
into a variety of sectors with the most Ireland truly is a sustainability leader. success and look with enthusiasm
recently announced tranche directed If we look around us – for example to the future where Ireland can
towards disruptive technologies the European Commission has illuminate and lead the way forward.
in areas such as healthcare, food, proposed that at least 25% of EU We’ve done it before, and we’ll do it
factory safety, construction, industrial expenditure will contribute to climate again.
heating systems and maritime. action during 2021-27, the attention
that Greta Thunberg’s message has
The second roadmap is that of the received or the pledges of large
Sustainable Development Goals. companies to reach carbon neutrality
I’ve co-authored both editions of by an accountable date, it’s clear the
“Positive Economics”, the market desire is tangible. Could Ireland think,
leading economics textbook for act and showcase differently and truly
Leaving Cert where sustainability stand up to stand out?
and specifically the SDGs, are at the
heart of the syllabus for our budding In summary, as the Irish public,
economists. This theme is now private and third level sectors
woven into all aspects of politics, together with the women, men and
society and the environment today. children of the country shape a new
“Ireland’s Sustainable Development way of living, working, entertaining
Goals (SDGs) data hub” details an and learning, let’s apply our critical
Susan Hayes Culleton
array of targets, champions, outputs thinking skills to our economic
and interactive tools to act as an strategy. We need to take care of our CFA, “The Positive Economist” is the
interface in front of a plethora of existing productive capacity, enable managing director at Hayes Culleton
data. However, when the SDGs new business models to happen, Group. Her latest book “Money Matters”
is a Transition Year financial literacy
are on the agenda of every board develop new products to sell, inspire
partnership project with CFA Ireland and
meeting, considered by every new economic activity, take care of will be gifted to every school in Ireland.
event organiser and require the those who don’t have the education Follow Susan on Twitter @SusanHayes_
Accountancy Plus June Issue 2021
07
Title:
Owner
CPA Profile
Carla Manning and Áine Kiely O’Donnell
CPA PROFILE
Company:
CACM Accountants
Carla Manning and Tax Advisors
Qualifications:
ADCA, CPA, CTax
Why did you decide to start out it afforded me a huge opportunity to to fruition over time gives me a big
in a career in accountancy? do things a little differently. By sense of achievement on a day-
embracing technology, I was able to-day basis. Most recently, I was
In school I always enjoyed my
to grow our client base and to service appointed to the Council of CPA
business and accounting classes, so
clients located not only locally, but Ireland and I’m very proud to have
when it came to CAO time, I decided
nationally and internationally too. the opportunity to contribute to the
to explore accountancy as a career. I
continuing growth and development
discovered there were lots of routes
I always loved working in the area of the Institute. The opportunity
to entry and it provided a huge
of tax and in 2013, I qualified as a to keep pushing and challenging
spectrum of career opportunities.
Certified Tax Adviser (CTax). As I myself is a joy and I’m looking
It seemed like an ideal way to turn
work with a lot of FDI companies, forward to achieving a few more
something I enjoyed into a career.
having a tax qualification really adds milestones in the years ahead.
value to the services I provide to
Why did you choose CPA Ireland these clients as well as individuals. What or who inspires you most
as your qualification route? I have a great team here and that in business?
A CPA qualification is a widely really allows me space to grow and
The resilience of business owners.
recognised qualification throughout develop the business. In 2018, I
There are some really tough days,
the world, so it provides opportunities joined the CPA taxation committee
weeks and months, but they pick
to work and travel abroad. There and I also represent the CPA Institute
themselves up, dust themselves
were a variety of CPA study options at CCAB-I – Taxation South and the
off and start again.
so after finishing college, it was TALC Collections sub-committee.
possible for me to start my training The learning never stops.
What advice would you give
and continue with my studies on
What one word describes what to those recently qualified or
a part time basis using a variety of
your CPA qualification has given currently studying for their CPA
methods that suited me best.
you? qualification?
Please provide a brief history A CPA qualification provides
Opportunities.
of your career. tremendous opportunities for your
career. Stick with it as you’ll gain a
After college, I took up my first What has been your biggest
wide range of skillsets and expertise
training role in practice and just loved career achievement?
that are valuable and transferrable
it. The variety, the clients and the real
Career achievements for me change across many industry sectors,
people behind the figures. I qualified
over time. Surviving the first year opening up a wealth of opportunities
as a CPA in 2000. I always wanted
of business was a big achievement for you.
to be my own boss and in 2009,
way back when, as was when we
I felt I was at a now or never stage,
celebrated 10 years in business in How do you unwind?
so I took the leap and set up my own
2019. Working with clients on
firm, CACM Accountants and Tax My husband, 3-year-old daughter and
projects and seeing them come
Advisors. As a new practice, I spend a lot of time in West Cork.
During the summer, we love to head
out on the water and spend the day
exploring the islands and beaches.
I love the arts and I’ve really missed
live theatre. Cork Midsummer Festival
kicks off in June and has a great mix
of theatre, dance and music, so I’m
really looking forward to that.
What traits do you admire in
others?
Hard work and a positive attitude.
Accountancy Plus June Issue 2021
08
Title: Managing Director
Company:
CPA Profile Accountable Advisors
Qualifications:
Áine Kiely O’Donnell FCPA, MBA, MIATI, AM
Currently doing a Diploma in
Data Analytics and Diploma in
Forensic Accounting
Why did you decide to start out and financial operations. What or who inspires you most
in a career in accountancy? A company so far ahead in tech in business?
The simple answer is that business and management systems, it was a My entrepreneurial parents and
entrepreneurship is in my DNA, it leader in innovation and standards. my kids, my forward-thinking father
goes back generations. Growing Moving back closer to home after 6 and business savvy mother who
up we saw first-hand national and years in Dublin, I worked with LIT in inspired my ambition and drive to
international business research Thurles in Procurement Management. achieve. Business management and
my parents conducted into the In 2000/2001 I worked in Ronan partnership of equality was inspiring
influencers of change on how to Industries as Financial Controller and from an early age. The respect and
improve and develop business. With Management Information Systems integrity of their values, their advice
a flair for business and accountancy and Business Structures and Process and guidance over the years and
during my formative education years Efficiency. their ability to manage life’s curve
and with finance being at the heart of balls with dignity and strength. The
business, it was an easy decision to I established Accountable Advisors leadership shown at home from an
choose this career journey. (AAL) 2007 with a focus on the SME’s. early age of how to make decisions,
I completed an MBA Corporate be it good or bad, the ability to adapt
Why did you choose CPA Ireland with the University of Limerick in and learn from those decisions and
as your qualification route? 2012/2013 and qualified with Friary experiences and to stand up again
Law as an Approved Mediator in 2016. and move forward. Also, it helps
The Accounting Technicians
qualification provided a pathway to when you love what you do.
What one word describes what
progression in accountancy. How
your CPA qualification has given How do you unwind?
could I do it while working? I needed
you?
the right formula to achieve success. Sport and music are probably my
The formula being course content, Flexibility. two passions outside of my family
a two-structure approach so I was The knowledge platform for flexibility. and work. Raised in a GAA household,
not limited to either industry or The options are endless. The CPA I coach club camogie underage
practice focussed and recognition CPD Programme to develop and and county underage teams with
of the qualification. CPA had evolve meant that the qualification success. I am currently County
international recognition over all of stayed relevant and up to date. The Tipperary Camogie Board Treasurer.
the courses at the time especially in knowledge platform enabled my I firmly believe based on many years
industry and so I could travel with curiosity to exploit the knowledge coaching and developing players,
it. The course location was the next in its development and continual that sport is an integral part in the
issue and if I moved roles how was learning to broaden my approach development of our business leaders
the course facilitation, and Griffith and technique. of the future, it’s that drive and
College provided both urban and passion to achieve and succeed in
rural locations, superb lecturers What has been your biggest their chosen environment.
and course structure. career achievement?
What traits do you admire in
There are many but the biggest is in
Please provide a brief history of others?
enabling change in every role
your career. The traits I most admire in others
I undertook over the 30 years.
I started my accountancy career The change to structure and support are respect, integrity, positivity and
in the treasury department for systems for clients/employers which people who inspire and motivate
Dairygold. I then spent time in Hays enabled informed decisions resulted others around them. Listening is an
DX in Dublin in Finance & Logistics, in better business performance. art, and with that curiosity, the why,
which ignited my interest The teaching and guiding of many what, where, and when questions.
in Management and Technology. business owners to successfully steer The ability to empathise is admirable
their business through the recession and goes hand in hand with the
The really progressive role was with
and pandemic. The achievement of emotional intelligence of people.
Guinness Store House (HopStore), a
teaching and developing students to This can inspire and motivate those
role that had everything, ERP systems,
successfully qualify as accountants around you and build trust.
Y2K, business analysis, online
payments, retail, restaurant, tourism with CPA and high earning industry
roles.
Accountancy Plus June Issue 202110
Sustainability Reporting
Financial Reporting News In September 2020, The IFRS Foundation
Trustees published a Consultation
Paper on Sustainability Reporting (2020
Consultation Paper). The aim of the
FRC consults on periodic be addressed, or comments
Consultation Paper was to assess the
review of FRS 102 or suggestions in relation to
the current requirements. In need for global sustainability reporting
UK and Ireland accounting addition to stakeholder feedback standards and the role, if any, that
standards are subject to periodic the review will consider recent the foundation should play in the
reviews, at least every five years, developments in financial development of such standards.
to ensure they remain up-to-date reporting (such as changes in
and continue to require high- IFRS) and relevant developments An initial review of the responses received
quality and cost-effective financial in the wider reporting framework. to the 2020 Consultation Paper indicated
reporting from entities within a growing and urgent demand to improve
their scope. Any changes to accounting
global consistency and comparability
standards that are proposed as a
The Financial Reporting Council in sustainability, recognition that urgent
result of the periodic review will
(FRC) is starting the next periodic be subject to public consultation steps need to be taken and a broad
review of FRS 102, including at a later date, not expected to be demand for the IFRS Foundation to play
other UK and Ireland accounting before 2022. The effective date a role in this. The Trustees met in early
standards. for any amendments is currently March 2021 to continue their analysis and
Part of this process is seeking expected to be 1 January 2024. discussions of the feedback received to
views from stakeholders on the 2020 Consultation Paper.
Stakeholders can provide
areas that might be considered comments on any aspect of the
One of the matters on which the Trustees
as part of the review. The FRC standards to ukfrsperiodicreview@
note that this might include new sought to consult was the establishment
frc.org.uk by 31 October 2021.
issues/transactions that should of a New Sustainability Standards Board
Source: www.frc.org.uk and following their meeting in March
2021 the Trustees have reached the
following views about the strategic
IASB extends the In response to calls from
stakeholders and due to the direction of a new board:
application period for
ongoing impact of Covid-19,
Covid-19 related rent • To focus on information that is material
the IASB has recently extended
concessions the relief by one year to cover to the decisions of investors, lenders
In May 2020, the International rent concessions that reduce and other creditors;
Accounting Standards Board only lease payments due on or
• To initially focus its efforts on climate-
(IASB) amended IFRS 16 Leases, before 30th June 2022.
related reporting, while also working
by introducing a practical
The amendment is effective towards meeting the information needs
expedient, to make it easier for
for financial reporting periods of investors on other ESG;
lessees to account for Covid-19
commencing on or after 1st
related rent concessions such
April 2021. • To build upon the well-established work
as rent holidays and temporary
Source: www.ifrs.org of the Financial Stability Board’s Task
rent reductions.
Force on Climate related Financial
Disclosures (TCFD), as well as work by
FRC proposes extending application period for the alliance of leading standard-setters
accounting requirements covering Covid-19-related in sustainability reporting focused on
enterprise value;
rent concessions
The Financial Reporting Council into FRS 102 and FRS 105 in • By working with standard-setters from
(FRC) has recently issued October 2020 apply to rent key jurisdictions, standards issued
an Exposure Draft that proposes concessions that reduce only by the new board would provide a
to extend the application lease payments originally due on globally consistent and comparable
period of requirements or before 30 June 2022, provided sustainability reporting baseline, while
that cover the accounting the other conditions for applying also providing flexibility for coordination
treatment of temporary rent the requirements are met.
on reporting requirements that capture
concessions occurring as a direct The amendments are proposed wider sustainability impacts.
consequence of the Covid-19 to be effective for accounting
pandemic by one year. periods beginning on or after Source: www.ifrs.org
FRED 78 proposes that 1 January 2021, with early
requirements originally introduced application permitted.
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valid8Me.com12
Commission adopts
Law & Regulation News proposal for a Corporate
Sustainability Reporting
Charities Regulator and Revenue Directive
Commissioners agree new The European Commission has recently
co-operation arrangement adopted a proposal for a Corporate Sustainability
Reporting Directive (CSRD) which would amend
The Charities Regulator and the Revenue Commissioners the existing external reporting requirements
have agreed an updated co-operation agreement. under the current EU Non-Financial Reporting
The Memorandum of Understanding, published today, Directive. The proposal
supports cooperation and collaboration in the interest
of ensuring appropriate sharing and assessment of • extends the scope to all large companies
information by both parties. and all companies listed on regulated markets
(except listed micro-enterprises)
The overarching aim of the arrangement is to uphold the
integrity of charitable organisations and charitable trusts • requires the audit (assurance) of reported
in Ireland and support public confidence in information
charities operating in Ireland or under Irish law.
• introduces more detailed reporting
requirements, and a requirement to report
The objectives of the new Memorandum of
according to mandatory EU sustainability
Understanding are to:
reporting standards
• Facilitate administrative cooperation between the
• requires companies to digitally ‘tag’ the
Charities Regulator and the Revenue Commissioners
reported information, so it is machine readable
in the performance of their respective functions in so
and feeds into the European single access
far as they relate to the regulation of charities;
point envisaged in the capital markets union
• Ensure consistency between decisions made or action plan.
measures taken by the Charities Regulator and the
Revenue Commissioners, in so far as is practical, Source: www.ec.europa.eu
in relation to matters concerning the regulation of
charities;
Extension of timeline for
• Avoid any unnecessary duplication of activities by the
Charities Regulator and the Revenue Commissioners; Credit Unions to hold
• Promote a common understanding of the
virtual AGMs
responsibilities, working procedures, legal powers and
constraints of the Charities Regulator and the Revenue The Government has approved an extension of the
Commissioners; timeline to allow credit unions to hold their 2020
Annual General Meetings virtually to the end of June
• Facilitate and provide necessary safeguards for effective 2021.
investigation and exchange of information, with the
objective of preventing, detecting and remedying The Finance (Miscellaneous Provisions) Act 2020,
misconduct or mismanagement in the administration signed into law last December extended the timeline
of charities and charitable funds; for credit unions to hold their 2020 Annual General
Meetings to end of April 2021. It also allowed for a
• Ensure appropriate consultation and co-operation temporary override of credit unions rules and allows
on matters of mutual interest so that charities may for all general meetings to be convened virtually.
be encouraged to comply fully with their legal
responsibilities under charity and taxation legislation The Credit Union Act 1997 (Section 3A) Order 2021
and adopt best practice in governance. now provides for an extension of the ‘interim period’
for a further two months until the end of June 2021.
Source: www.charitiesregulator.ie
Source: www.gov.ie
Accountancy Plus June Issue 202113
Ensuring a safe return to work
Ensuring a safe return to work – Employees and Covid-19 Vaccine by Derek McKay
LAW & REGULATION
Employees and Covid-19 Vaccine
by Derek McKay
There has been significant commentary in relation to the Covid-19 vaccine roll-out programme in
Ireland with most recent announcements detailing that the Government is confident that 82% of the
adult population will have received the first of their jabs by the end of June and anyone who wished
to receive the vaccine will have done so by September. A considerable task but achievable if there are
no further delays.
This is a very welcome message for have employees returning to the reasonably include the risk of
most, if not all, businesses as it is workplace, subject to the restriction Covid-19 infection. Employees must
crucial to get mass vaccination to levels in force. However, while it is adhere to all guidelines and protocols
ensure we have a successful and highly recommended that everyone implemented by their employers.
safe reopening of the economy, receives the Covid-19 vaccine, it
Communication is key; while
particularly within the hospitality is not mandatory in Ireland and a
employers cannot force their
and related sectors for the summer person’s fundamental right to bodily
employees to get vaccinated, they
season. integrity is covered under the Irish
can communicate out the advice
Constitution.
Based on the reports we’re getting from government and the HSE.
from Government, and on the This leaves employers in a potentially
prioritisation of those receiving the difficult situation; while seeking to
Avoid potential
vaccine, we expect to see the vast ensure a safe workplace, they cannot discrimination
majority of healthy adults receiving force employees to get vaccinated Employees have protections under
the vaccine over late summer and it is highly unlikely that the the Employment Equality Acts 1998
and early autumn. Thus, providing Government will introduce any laws – 2015 from discrimination on nine
some optimism for employers who stating employees are obliged to take grounds, including religion, age
can start planning a return to the the vaccine. So, what are the main and disability. An employee may
workplace. considerations for employers? decide not to get the vaccine for
a number of reasons that would
Working with this date in mind, it Assess the risk
gives ample time for employers to come under these specific grounds,
Under the Safety, Health and Welfare such as a medical condition or their
ensure a safe return to the workplace
at Work Act, an employer must religious beliefs. Any mandate by an
but a key question for employers
carry out a risk assessment of the employer that employees need to
relates to ‘how or can they ensure
workplace and any potential risks take the vaccine could constitute
employees are vaccinated?’ Also,
that have been identified must be discrimination under the Act.
what can they do to ensure the
addressed and The Work Safely
health and safety of their workforce?
Protocol should be adhered to in all Managing the risk with
Provide a safe workplace workplaces. It is important to note employees who don’t get
that scientists are still not clear on vaccinated
Under the Safety, Health and Welfare
whether or not the vaccine prevents
at Work Act, it is the responsibility Understanding an employees’
the spread of Covid-19, so it is
of the employer to provide a safe concerns is important and
important for employers to ensure
working environment for employees, finding solutions that meet the
that all employees follow the safety
so it is not unreasonable that an business needs without infringing
protocols that are put in place,
employer would want their workforce on employee rights is crucial in
whether they have been vaccinated
vaccinated. The Work Safely Protocol managing an employees’ integration
or not.
was introduced in November 2020 back into the workplace. Extending
(an enhanced version of the original Equally, employees have the term of remote working may be
Return to Work Protocols launched responsibilities under the Act to an option but this may not be feasible
in May 2020) and it is essential work with their employer to protect for all sectors or may cause other
that all employers ensure they are themselves and their colleagues unintended consequences.
fully implemented if they intend to from potential risks; this could
Accountancy Plus June Issue 202114
In any case, employers need to think possible. In fact, given the restrictions evolving employment landscape.
carefully about any action they take, that have been in place for over a But it is important that employers
and the potential legal consequences year, many businesses have turned meet their responsibilities under
associated with these actions. to virtual meetings, events and employment legislation and prepare
conferences as the norm. for future working practices.
Data protection concerns
If an employee is returning from Conclusion
As part of assessing the risks,
a holiday from a country badly
employers will naturally want to know Given the vast majority of the working
impacted by Covid-19, they are
who has or hasn’t been vaccinated population won’t be returning to the
required to follow public health rules
before getting employees back to workplace until much later in the
relating to that region and must take
the workplace. In order to process year, it is hoped that the vast majority
any quarantine into consideration
personal data, there must be a legal will have taken up the offer of
when booking time off. This may
basis to do so, the grounds for vaccination. However, planning and
have implications for their availability
which are set out in Article 6 of the communication are key to ensuring
to attend for work upon their return.
General Data Protection Regulations. a smooth transition when the time
While employees are not obliged to Remote working – what comes.
provide personal medical information happens next? Ensuring health and safety policies
in the main, employers may seek
As workplaces begin to reopen, a and procedures are updated, robust
vaccination information on the basis
consideration for many employers risks assessments are carried out and
that they are meeting their legal
will be a potential influx of requests adhering to the Work Safely Protocol
obligations under the Safety, Health
to work remotely. The Government are key to getting people back to the
and Welfare at Work Acts. Realistically
has signalled its support for remote workplace.
it will be up to individual employees
working through its National Remote Be mindful and respectful of an
to volunteer this type of information
Working Strategy and ambition to individual’s right not to get vaccinated
to their employer.
have 20 percent of public servants and plan accordingly by offering
If employees volunteer information working remotely by the end of the other working arrangements where
about whether or not they have year. appropriate. And avoid a situation that
been vaccinated, employers should
Many who have been working may constitute discrimination, leading
take care not to disclose to other
remotely for over a year may expect to legal issues.
employees who have or have not
to have the same flexibility when it And, finally, keep a watching brief on
been vaccinated.
comes to a full reopening. Unless the national vaccination programme
Work-related and leisure previously agreed, remote working and the public health advice to assist
travel is being done so on an interim basis. in proceeding safely with a return to
How employers manage requests to the workplace.
At the time of writing, the European
work remotely in the future is going
Commission was considering Adare Human Resource
to be dependent on the business
proposals for the introduction of Management is a team of expert-
needs. Caution should be taken as
a Digital Green Card, or vaccine led Employment Law, Industrial
any permanent decision for remote
passport, for travel within the EU. Relations and best practice Human
working may set a precedent.
Regardless, anyone travelling must Resource Management consultants.
follow the public health guidance and Employers need to clearly establish For more information go to www.
rules at the time of travel. what their policies are in relation to adarehrm.ie or contact one of the
remote working to avoid confusion team at (01) 561 3594.
Any travel, whether personal or
or challenges. There are also other
business, should be limited if at all
consequences for employers to
consider, particularly for employees
who are working outside the country,
such as employment tax, statutory
employment rights, data protection
and immigration.
Remote working is a permanent
fixture in the employment landscape
and while it presents some tough
challenges for employers, developing
innovative strategies to successfully
navigate the challenges should be
in sharp focus. Each sector is going
to be different in how it effectively Derek McKay
manages remote working and the Managing Director at
Adare Human Resource Management.
Accountancy Plus June Issue 202115
Ireland – 5th Anti-Money Laundering
Ireland – 5th Anti-Money Laundering Directive by Henry Duggan
LAW & REGULATION
by Henry Duggan
On 19th June 2018, the 5th Anti- As a result, Ireland was fined €2 • Tax advisors –
Money Laundering Directive (Directive million on 16th July 2020 for failing Individuals involved in the
(EU) 2018/843)1 was published. This to transpose the Directive before provision of taxation advice to
revised Directive, which updated the the required due date of 26th June clients.
previously published 4th Anti-Money 2017 (which was required of all EU • Virtual currency providers –
Laundering Directive2, required member states). Following this, the Similar to the requirements
transposition by all EU Member States publication of the Criminal Justice already imposed on financial
on or before 10th January 2020. This (Money Laundering and Terrorist institutions, virtual currency
new Directive provided significant Financing) (Amendment) Bill 20205 in providers will now have to
enhancements to further enhance September provided the initial steps conduct the appropriate due
the financial crime frameworks across for the transposition of the 5th Anti- diligence on clients.
EU member states, thereby providing Money Laundering Directive into Irish
• Art dealers –
greater protection against money law.
Those involved in the trading
laundering and terrorist financing.
In essence this bill moved to of pieces of art where the value
As has been promulgated by the
amend the Criminal Justice (Money (either alone or in conjunction
European Commission3, these new
Laundering and Terrorist Financing) with linked transactions) is at least
enhancements focussed on:
Act 2010 to give effect to Directive €10,000.
• Enhancing transparency by setting (EU) 2018/843 of the European
• Politically Exposed Persons
up publicly available registers for Parliament and of the Council of
(“PEP”) -
companies, trusts and other legal 30th May 2018 amending Directive
Under the new requirements,
arrangements. (EU) 2015/849 on the prevention of
designated persons are required
the use of the financial system for
• Enhancing the powers of EU to continue to monitor politically
the purposes of money laundering
Financial Intelligence Units and exposed persons for as long as is
or terrorist financing and amending
providing them with access to reasonably required to take into
Directives 2009/138/EC and 2013/36/
broad information for the carrying account the continuing risk posed
EU; and to provide for related
out of their tasks. by that person and until such
matters. This was subsequently
time as that person is deemed
• Limiting the anonymity related achieved in March 2021 through the
to pose no further risk specific
to virtual currencies and wallet Criminal Justice (Money Laundering
to politically exposed persons.
providers, and also for pre-paid and Terrorist Financing) (Amendment)
Additionally, the definition of a PEP
cards. Act 2021.
has been updated to any individual
• Broadening the criteria for the So, this raises the question as to performing a prescribed function –
assessment of high-risk third the impact of the 5th Anti-Money where the Minister for Finance will
countries and improving the Laundering Directive on the AML issue guidelines as to what may be
safeguards for financial transactions environment in Ireland. A number of considered to be prominent public
to and from such countries. important developments occurred function.
across the following areas6: • High Risk Countries -
• Setting up central bank account
registries or retrieval systems in all • New categories of “designated Designated persons will be required
Member States. persons” were introduced in the to apply the following measures
new legislation. This definition was to manage and mitigate the risk
The European Court of Justice found expanded to include the following: of money laundering and terrorist
that the 4th Money Laundering financing additional when dealing
Directive was not fully transposed • Property service providers –
with a customer established or
into Irish law until 3rd December Property and Estate Agents who
residing in a high-risk third country:
20194. are involved in the letting of
properties where the monthly a. Obtaining additional information
rental income is at least €10,000. on the customer and on the
beneficial owner.
1 EUR-Lex - 32018L0843 - EN - EUR-Lex (europa.eu)
2 EUR-Lex - 32015L0849 - EN - EUR-Lex (europa.eu)
3 Anti-money laundering and counter terrorist financing | European Commission (europa.eu)
4 Judgment of the Court (Grand Chamber) of 16 July 2020. - Publications Office of the EU (europa.eu)
5 b2320d.pdf (oireachtas.ie)
6 a0321.pdf (oireachtas.ie)
Accountancy Plus June Issue 202116
b. Obtaining additional information The new act also reinforces the within financial institutions and other
on the intended nature of the necessity for the Irish Financial regulated entities are enhanced to
business relationship. Intelligence Unit, where practicable, reflect the additional requirements in
to provide timely feedback to the new legislation.
c. Obtaining information on the
a designated person who is
source of funds and source of Additionally, there is also a
required to make a report on the
wealth of the customer and of clear requirement to ensure
effectiveness of and follow-up to
the beneficial owner. that appropriate monitoring
reports made to it.
of controls are in place to
d. Obtaining information on the
Tipping Off – The new act also monitor the effectiveness of new
reasons for the intended or
updates an additional defence to the countermeasures on an ongoing
performed transactions.
offence of “tipping off” for the person basis, and then take remedial
e. Obtaining the approval of senior to prove that, at the time of the action if needed. Similarly, there is
management for establishing disclosure that: also a need for enforcement and
or continuing the business a. the person was a credit institution regulatory bodies to monitor the
relationship. or financial institution or a majority- implementation and effectiveness
owned subsidiary, or a branch, of those in the regulated sector.
f. Conducting enhanced
of a credit institution or financial The 5th Anti-Money Laundering
monitoring of the business
institution, or made the disclosure Directive provides an opportunity
relationship by increasing the
on behalf of a credit institution or to further strengthen the financial
number and timing of controls
a financial institution or a majority- crime regulatory environment within
applied and selecting patterns
owned subsidiary, or a branch, Ireland, thereby further enhancing
of transaction that need further
of a credit institution or financial the jurisdiction’s reputation as an
examination.
institution, and international financial services centre
• Beneficial Ownership - going forward.
b. the disclosure was to:
The new requirements also
i. a credit institution or financial “The views expressed in this article
highlight that designated persons
institution incorporated in a are those of the author(s) and
are required to ascertain that
Member State, where both not necessarily the views of FTI
information relating to beneficial
the institution making the Consulting, its management, its
ownership included in the relevant
disclosure, or on whose behalf subsidiaries, its affiliates, or its other
Central Register of Beneficial
the disclosure was made, and the professionals.”
Ownership.
institution to which it was made “FTI Consulting is an independent
• Senior Managing Officials - belonged to the same group, or global business advisory firm
Where the beneficial owner is the
ii. a majority-owned subsidiary dedicated to helping organisations
senior managing official referred
or branch situated in a third manage change, mitigate risk and
to in Article 3(6)(a)(ii) of the 4th
country of a credit institution or resolve disputes: financial, legal,
Money Laundering Directive, a
financial institution incorporated operational, political & regulatory,
designated person will be required
in a Member State, where the reputational and transactional. FTI
to take the necessary measures to
subsidiary or branch was in Consulting professionals, located in
verify the identity of that person
compliance with group-wide all major business centres throughout
and must keep records of the
policies and procedures adopted the world, work closely with clients to
actions taken to verify the person’s
in accordance with section 54, anticipate, illuminate and overcome
identity including any difficulties
or, as the case may be, Article complex business challenges and
encountered in the verification
45 of the 4th Money Laundering opportunities. For more information,
process.
Directive.” visit www.fticonsulting.com and
• Prepaid Cards - connect with us on Twitter (@
The customer due diligence limits In conclusion, the transposition FTIConsulting), Facebook and
relating to prepaid cards has now of the 5th Anti-Money Laundering LinkedIn.www.fticonsulting.com.”
been reduced down from the Directive into Irish law, provides a
previously existing threshold of significant further enhancement of
€250 to a maximum monthly the previously existing framework.
amount to €150. However, it is important to note
• Safety Deposit Boxes - that merely enacting legislation
The new requirements prohibit does not guarantee an enhanced
the creation of anonymous level of protection from illicit
safety-deposit boxes by financial activities such as money laundering
institutions. and terrorist financing. There is a
clear responsibility on those in the
• Financial Intelligence Unit regulated sector to ensure that
Feedback - the current AML/CFT frameworks
Henry Duggan
Managing Director, Financial Services,
FTI Consulting
Accountancy Plus June Issue 2021You can also read
