Previous News Items in 2010
Christmas opening arrangementsFriday, 24th December, 2010: The Authority’s offices will be open as follows over the Christmas period:
Institute of Chartered Accountants in Ireland publishes results of Anglo Special InvestigationMonday, 20th December 2010: The Institute of Chartered Accountants in Ireland has published the results of the Special Investigation into certain Institute members' roles in events at Anglo Irish Bank Corporation. Further details of the investigation, which was conducted under the Authority's supervision, can be accessed here. The Special Investigator has also been charged with examining the bank's former auditor's performance. That aspect of the Special Investigator's work is ongoing at this time. Authority responds to European Commission’s Green Paper on future audit policyWednesday, 8th December, 2010: The Authority has today responded to the European Commission’s Green Paper on future audit policy. The Authority’s response can be accessed here. Recent developments regarding the implementation of the European Commission’s Quality Assurance RecommendationWednesday, 3rd November, 2010: Having engaged in a consultation exercise with interested parties, the Department of Enterprise, Trade & Innovation has announced the decision by Minister for Trade & Commerce, Mr. Billy Kelleher, TD, to implement the European Commission’s Recommendation on external quality assurance of certain audits. In implementing the Recommendation, the model to be adopted will be one of direct inspections, such inspections to be carried out by IAASA. Pursuant to a request from the Minister, IAASA has commenced work on the development of an implementation plan and will shortly be initiating a dialogue with key stakeholders. It is anticipated that implementation will require the enactment of certain legislative provisions in due course. The text of the Recommendation, which applies to statutory auditors and audit firms auditing Public Interest Entities (‘PIEs’), can be accessed here. PIEs comprise of entities whose securities have been admitted to trading on certain regulated markets, credit institutions and insurance undertakings. Accounting Standards Board (‘ASB’) publishes its proposals for the future of financial reporting in IrelandFriday, 29th October, 2010: The Accounting Standards Board (‘ASB’) has today published its proposals for the future of financial reporting in the UK and Republic of Ireland. Further details can be accessed here. Authority agrees Terms of Settlement with the Institute of Chartered Accountants in IrelandFriday, 29th October, 2010: Following the completion of a Preliminary Enquiry and the subsequent initiation of a Full Enquiry under section 23 of the Companies (Auditing and Accounting) Act 2003, the Authority and the Institute of Chartered Accountants in Ireland have agreed Terms of Settlement (‘Settlement’) on the basis that it has been determined that the Institute failed to comply with its approved investigation and disciplinary procedures. The Settlement, which details the Authority’s findings and the associated sanctions, can be viewed here CESR publishes a follow-up Statement on the Application of Disclosure Requirements Related to Financial Instruments in the 2009 Financial StatementsTuesday, 26th October, 2010: The Committee of European Securities Regulators (CESR) has published a follow-up Statement on an earlier report on the “Application of Disclosure Requirements related to Financial Instruments in the 2008 Financial Statements of Financial Institutions” published in November 2009. The Authority conducted the work from an Irish perspective. The report can be accessed here. CESR publishes ninth extract from its database of enforcement decisions taken by EU national supervisors of financial information (IFRS)Monday, 25th October, 2010: The Committee of European Securities Regulators (CESR) has published the ninth extract from its database of enforcement decisions taken by EU national supervisors of financial information that participate in the European Enforcer Coordination Sessions (EECS). EU national supervisors monitor and review the financial statements of issuers and consider whether they comply with International Financial Reporting Standards (IFRS) and other applicable reporting requirements, including relevant national law. This extract can be accessed here. • Opportunities for accounting professionalsFriday, 15th October, 2010: The Authority wishes to recruit a number of key professional staff. Details of the posts on offer can be viewed here. This closing date for applications under this competition has now passed. European Commission consults on how the European audit market can be improvedWednesday, 13th October, 2010: The European Commission has today launched a broad consultation on the role of statutory audit as well the wider environment within which audits are conducted. The Green Paper “Audit Policy: Lessons from the Crisis” can be downloaded here. The Commission’s associated press release can be downloaded here. Meeting of International Audit RegulatorsWednesday, 29th September, 2010: The International Forum of Independent Audit Regulators (‘IFIAR’) has held its eighth meeting in Madrid, Spain. Details of the composition and activities of the Forum can be found on its website, www.ifiar.org. A press release regarding its latest meeting can be downloaded here. IAASA is a founder member of the Forum. CESR publishes its first annual activity report on monitoring enforcement of IFRS in Europe.Thursday, 23rd September, 2010: CESR has today published its first annual activity report on monitoring enforcement of International Financial Reporting Standards (IFRS) in Europe. This Report provides an overview of the monitoring and enforcement of IFRS in Europe in the year to 31 December 2009 through the activities of the European Enforcement Co-ordination Sessions (“EECS”) under the auspices of the Committee of European Securities Regulators (CESR). The main objective of EECS is to co-ordinate the enforcement activities of member states in order to foster and maintain investor confidence. Summarising the Report, CESR note that during 2009: “European enforcers performed a full review of around 1,200 companies’ accounts (annual and interim), covering in the region of 18% of listed entities in Europe. The coverage from one country to another varies because of the very different number of issuers across jurisdictions, the diversity in size and their risk profile. The report shows, that around 900 enforcement actions were taken overall in Europe, out of which the EECS reviewed and discussed 170 cases further. The findings of these discussions both contributed to increased consistency amongst Member States enforcers in the actions taken which is encouraging. Of the 900 actions taken in Europe, in 19 of these cases, the issuer was required to issue revised financial statements. In around a further 160 cases the issuer was required to publish corrective notes or to make other public announcements. In approximately 560 actions corrections in future financial statements were required; and a further 170 cases resulted in other actions by enforcers, such as a notice to the issuer, without requiring any corrective action or public announcement.” IAASA is a member of the EECS and during the reporting year covered by the activity report: • Authority staff attended all 7 EECS plenary meetings and actively participated in the consideration of issues brought to the EECS by other members; • the Authority submitted 13 decisions to the database; • Authority staff presented 8 decisions to the plenary for discussion; • Authority staff submitted 2 emerging cases to the plenary for discussion; • presented 5 discussion papers to the plenary for discussion amongst members. The subject matter of those discussion papers included: o the impact of IAS 20 Accounting for Government Grants and Disclosure of Government Assistance and IAS 24 Related Party Disclosures on State participation in the ownership of banks and the impact of NAMA; o IFRS 3 Business Combinations and factors contributing to the recognition of goodwill; o IAS 1 Presentation of Financial Statements and the classification of bank loans in circumstances of non-compliance with loan covenants; and o IFRS 8 Operating Segments and the identification of Cash Generating Units for the purposes of impairment testing; • hosted, in conjunction with the Financial Regulator, a meeting of EECS in July, 2009 at Dublin Castle which was attended by representatives of EU accounting enforcers from 19 countries. In addition to the Authority’s participation in plenary related matters, the Head of Financial Reporting Supervision is also: • a member of the EECS’ Agenda Group, • a member of the EECS’ Enforcement Methodology Group, and • a member of the EECS’ Enforcement Actions Group. The Report can be accessed here. In addition, CESR’s associated press release can be accessed here. CESR publishes eighth extract from its database of enforcement decisions taken by EU national supervisors of financial information (IFRS)Wednesday, 14th July, 2010: The Committee of European Securities Regulators (CESR) has published an eighth extract from its database of enforcement decisions taken by EU national supervisors of financial information that participate in the European Enforcer Coordination Sessions (EECS). EU national supervisors monitor and review the financial statements of issuers and consider whether they comply with International Financial Reporting Standards (IFRS) and other applicable reporting requirements, including relevant national law. This extract can be accessed here. The EECS is a forum in which all EU/EEA national supervisors of financial information, whether CESR members or not, meet to share the reasons underpinning their accounting enforcement decisions, canvas members’ views on issues currently being dealt with and to identify issues which do not appear to be covered by financial reporting standards or which may be affected by conflicting interpretations for referral to standard setting or interpretive bodies such as the International Accounting Standards Board (IASB) or the International Financial Reporting Interpretations Committee (IFRIC). CESR has developed a confidential database of enforcement decisions taken by individual EU national supervisors as a source of information to foster appropriate application of IFRS. All decisions submitted to the database are considered as appropriate for publication, unless: • similar decisions have already been published by CESR, and publication of a new decision would not add any substantial value to the fostering of consistent application; • the decision deals with a simple accounting issue that, even having been considered a material infringement, does not in itself have any accounting merit; • there is no consensus within the EECS to support the submitted decision; • a particular EU National enforcer, on a grounded and justified basis, believes that the decision should not be published. In response to concerns about confidentiality and privacy laws, which vary between EU jurisdictions, extracts do not, usually, include the name of the issuer or the enforcer or any other details that would enable the issuer or its jurisdiction to be identified. IAASA is a member of the EECS and the Authority’s Head of Financial Reporting Supervision is also a member of the EECS’ Agenda Group. During 2009, IAASA submitted 13 decisions to the database. The most recent material published by CESR can be accessed here. Authority finds that the Institute of Chartered Accountants in Ireland failed to comply with its approved investigation and disciplinary proceduresFriday, 2nd July, 2010: Following the completion of a statutory Enquiry under section 23 of the Companies (Auditing and Accounting) Act 2003, the Authority has determined that, with respect to the matters detailed in the Decision, the Institute of Chartered Accountants in Ireland failed to comply with its approved investigation and disciplinary procedures. The Authority’s determination was affirmed by the President of the High Court on 17 May, 2010. The Decision, which details the Authority’s findings and the associated sanction, can be accessed here. Authority publishes fourth Annual ReportThursday, 24th June, 2010: The Authority has today published its 2009 Annual Report. The Report can be accessed here. The associated Press Statement can be accessed here. Minister approves fee to be paid by third country auditorsWednesday, 9th June, 2010: The Minister for Enterprise, Trade & Innovation, Batt O’Keeffe TD has signed the European Communities (Transitional Period Measures in respect of Third Country Auditors) (Fees) Regulations 2010 into law. The Regulations (which have been enacted via Statutory Instrument No. 251 of 2010) specify the fee to be paid by a third country auditor seeking registration under the transitional regime from the Irish Auditing and Accounting Supervisory Authority. As a result of the enactment of the Regulations, applicants seeking such registration under the transitional regime are now required to pay the Authority a fee of €2,000, such fee being for the purpose of covering the Authority’s costs. The Regulations can be accessed here. Authority invites of expressions of interest for the provision of legal servicesFriday, 4th June, 2010: The Authority is inviting expressions of interest for the purpose of facilitating selection of its principal provider of legal and ancillary services for a three year period. The Authority also engages the services of other such service providers from time to time (e.g., in instances where potential conflicts of interest arise). This exercise will also be used for the purpose of facilitating the establishment of a Panel of reserve service providers. For the avoidance of doubt, the Panel referred to above is separate and distinct from the Panel of legal professionals advertised in February last in the context of the Authority’s supervisory mandate vis-à-vis the Prescribed Accountancy Bodies. Further information was provided in the detailed Invitation document, which can be downloaded here. The closing date for receipt of expressions of interest has now passed. Statutory Audit Directive transposedMonday, 24th May, 2010: The Minister for Enterprise, Trade & Innovation, Mr. Batt O’Keeffe, TD, has signed the European Communities (Statutory Audits) (Directive 2006/43/EC) Regulations 2010 into law. The Regulations (which have been enacted via Statutory Instrument No. 220 of 2010) give effect in domestic law to the EU Statutory Audit Directive. The Regulations can be accessed here. Authority publishes observations on materiality in financial reportingFriday, 21st May, 2010: The Authority has today published a paper setting out: • IAASA’s observations arising from its engagement with issuers in respect of their materiality judgements; and • an overview of the requirements of IFRS with respect to preparers’ assessment of materiality. The paper can be accessed here. IAASA’s interactions with issuers to date suggest that preparers’ assessment of materiality can be unduly focused on a narrow range of quantitative considerations, as well as on the needs of a limited range of users. This paper aims to assist preparers with materiality assessments in respect of their financial reports as well as to provide preparers who may become subject to IAASA’s supervisory activities with an understanding of its likely approach. Authority seeks to establishment a Panel of legal professionalsWednesday, 3rd March, 2010: Pursuant to the Companies Acts, one of the Authority’s principal functions is to supervise the Prescribed Accountancy Bodies’ regulation and monitoring of their members and member firms. In discharging this function, the Authority, on occasion, requires the services of suitably qualified legal professionals. In that context, IAASA wishes to establish a Panel of such persons and is inviting expressions of interest from legal professionals. Further details of this Invitation can be found here. The closing date for receipt of Invitations has now passed. Authority publishes observations on selected year end financial reporting issuesFriday, 15th January, 2010: The Authority has today published observations on selected year end financial reporting issues affecting entities whose securities are listed on a regulated market and whose home Member State is Ireland. In presenting their results and financial positions in respect of financial years ending on or after 31 December, 2009, issuers continue to report against a background of ongoing market uncertainty, reduced access to credit, weak economic activity and potentially impaired asset values. Each of these factors gives rise to increased risk and uncertainty in the recognition, measurement, classification, presentation and disclosure of revenues, expenses, assets and liabilities in periodic financial reports. Set against this backdrop the observations document has been developed with a view to providing information and assistance to issuers’ Boards and Audit Committees. The document also provides details of certain areas that are likely to be the focus of IAASA’s financial reporting review activity during the coming year. The document can be accessed here. |
Irish Auditing & Accounting |
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