Newswire April 2024

AUDIT & ACCOUNTING

Simpler corporate reporting 

The Government has announced its first set of intended regulatory changes as part of its commitment to make the non-financial reporting framework smarter, simpler and better for business. These changes include the Government’s intention to lay legislation this summer to lift the monetary thresholds that determine company size by 50% to take account of inflation and to reduce burdens on smaller businesses. 

For details of the proposed changes you can read our blog here. 

FRC revises UK and Ireland accounting standards 

The FRC has issued comprehensive improvements to financial reporting standards applicable in the UK and Republic of Ireland. The amendments to the standards will, in most cases, be effective for accounting periods beginning on or after 1 January 2026. 

For details of the amendments you can read our blog here. 

2024 IFRS Standards 

The UKEB has published the 2024 consolidated UK-adopted international accounting standards on behalf of the UK Government. The UKEB website contains links to the text of each UK-adopted international accounting standard that has been brought into UK law by Statutory Instrument 2019/685 International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019. 

IASB issues a new standard, IFRS 18 

The IASB has completed its work to improve the usefulness of information presented and disclosed in financial statements. The new Standard, IFRS 18 Presentation and Disclosure in Financial Statements, issued as a result, replaces IAS1 Presentation of Financial Statements and aims to give investors more transparent and comparable information about companies’ financial performance, thereby enabling better investment decisions. It will affect all companies using IFRS Accounting Standards and is effective for annual reporting periods beginning on or after 1 January 2027, although early adoption is permitted. 

UKEB Outreach on the IASB’s Exposure Draft Business Combinations – Disclosures, Goodwill and Impairment 

The UKEB has invited stakeholders to comment on the IASB Exposure Draft (ED) on Business Combinations – Disclosures, Goodwill and Impairment, which proposes: 

• amendments to the disclosure requirements for acquisitions under IFRS 3 Business Combinations. 
• changes to the impairment test of cash-generating units containing goodwill under IAS 36 Impairment of Assets.  

The IASB ED is open for stakeholder comment until 15 July 2024. 

IASB consults on supplementary proposals to update the IFRS for SMEs Accounting Standard 

The IASB has published for public comment the Addendum to the Exposure Draft Third edition of the IFRS for SMEs Accounting Standard, which supplements the exposure draft published in September 2022. The proposals in the Exposure Draft would update the IFRS for SMEs Accounting Standard and reflect improvements made to the full IFRS Accounting Standards. The proposals balance the needs of users of SMEs’ financial statements, while maintaining the IASB’s commitment to only update the Standard periodically. 

The deadline for comments is 31 July 2024. 

IAASB announces new strategy and work plan to advance global audit and assurance standards 

The IAASB has published its approved strategy and work plan aimed at enhancing consistency and quality of audit and assurance standards worldwide. Elevating Trust in Audit and Assurance: IAASB’s Strategy and Work Plan for 2024-2027 reflects the crucial role of audit and assurance in fostering trust in the world’s economies. 

FRC launches market study on UK sustainability assurance market 

The FRC has announced the launch of its first market study to examine the UK market for sustainability assurance services. The study aims to ensure this rapidly growing market is functioning effectively and providing high quality assurance over companies' sustainability reporting. 

UK and Australia audit authorities sign mutual recognition agreement in further boost to UK audit market 

The FRC and the Australian Securities and Investment Commission (ASIC) have announced a Memorandum of Understanding on Reciprocal Arrangements (MOURA) making it easier for auditors to work between both countries. 

ACADEMIES 

Academies Accounts Direction 2023 to 2024 

The Education and Skills Funding Agency has published the Academies Accounts Direction 2023 to 2024. 

In addition to the Accounts Direction, two further documents have also been published: 

• a model set of accounts for academy trusts (known commonly as the ‘Coketown model’) 
• an auditor framework and guide, primarily for use by academy trust external auditors and reporting accountants. 

ICAEW 

New PII Regulations from 1 September 

Following a review of ICAEW’s professional indemnity insurance requirements, which included a public consultation, wide-ranging proposals were presented and some of these are now being taken forward. Changes will come into effect from 1 September 2024. 

ISQM1: early findings from quality assurance monitoring 

Following the introduction of ISQM 1, which replaced ISQC 1 in December 2022, the ICAEW has published its early findings from audit monitoring reviews, and highlights what QAD will be looking for in 2024. 

ACCA 

The ACCA has published its quarterly update which focuses on audit monitoring reviews and what to expect from a monitoring review. 

MONEY LAUNDERING 

Guidance on Beneficial Ownership and Transparency of Legal Arrangements 

Following the February 2023 revisions to FATF Recommendation 25 on Beneficial ownership and transparency of legal arrangements, the FATF has updated its risk-based guidance for this Recommendation. The guidance complements the existing guidance on Recommendation 24 on legal persons and aims to help stakeholders from the public and private sectors to implement the new requirements more effectively. 

The Russia (Sanctions) (Overseas Territories) (Amendment) Order 2024 

There has been an extension of sanctions to British Overseas Territories except Bermuda and Gibraltar. 

TAXATION

Double cab pick-ups - a change of policy or not?

In a surprise update, HMRC reversed their change of policy in relation to double cab pick-ups. To read more, please click here.

Chancellor backs British business with pension fund reforms

The Chancellor has announced the reforms as a further step in the Government’s plan to boost business and increase returns for savers. To read more, please click here.

£360 million to boost British manufacturing and R&D

The Chancellor has also announced a significant investment package in the UK’s life sciences and manufacturing sectors. To read more, please click here.

Proprietor's training courses

As promised in the Autumn Statement, HMRC has rewritten guidance around the tax deductibility of training costs for sole traders and the self-employed. To read more, please click here.