Ukraine credit guarantees
As part of the government’s response to assist businesses affected by the crisis in Ukraine, the Ukraine credit guarantee scheme will facilitate up to €1.2bn in lending to eligible businesses.
The scheme offers a partial government guarantee (80%) to participating finance providers against losses on qualifying finance agreements to eligible small and medium-sized enterprises, primary producers and small mid-caps (defined as businesses with up to 499 employees).
It is designed to incentivise participating finance providers to continue to play their role in supporting the availability of additional liquidity to Irish businesses.
In order to qualify for the scheme, the borrower will have to declare that costs have increased by a minimum of 10% on their 2020 figures and that the loan is being sought specifically as a result of difficulties being experienced due to the Ukraine crisis. It must also be a new loan, as the scheme cannot be used to refinance existing debt.
SMPs have some way to go on the digital journey
Going digital
The International Federation of Accountants (IFAC) has undertaken research in Ireland and the UK on the digitisation of small and medium practices (SMP).
The survey was led by Gail McEvoy, technical adviser for the IFAC SMP committee and a practitioner based in Drogheda. Some of the findings are as follows:
- SMPs have embraced their online presence and are using social media. However, many still have some way to go on the digital journey.
- The bigger the practice the more digitally advanced they are.
- A number of challenges were identified, the greatest of which was client buy-in. Clients were reported as being unable or unwilling to do things differently.
- However, the more digitally enabled practices reported significant benefits in productivity, flexibility and overall attractiveness of the practice to new recruits, and to existing and potential clients.
For the first time IAASA decisions cover accounting for climate change
Financial reporting
The Irish Auditing and Accounting Supervisory Authority (IAASA) has published a compendium of financial reporting decisions. These decisions relate to accounting treatments applied by CRH, Flutter Entertainment and Tullow Oil in their 2021 annual financial reports.
The report has commentary on IAS 36, Impairment of Assets, IAS 37, Provisions, Contingent Liabilities and Contingent Assets, IFRS 8, Operating Segments, the European Securities and Markets Authority (ESMA) guidelines on alternative performance measures, and the Management Report Transparency (directive 2004/109/EC) regulations 2007.
These published decisions are either instances where the company voluntarily agreed to enhance its accounting treatment or disclosures in future financial reports to address matters identified during IAASA’s examinations, or decisions where IAASA agreed with the accounting treatment applied by the company.
Reflecting public concern about climate change and companies’ responses to that and the sustainability agenda, these decisions cover accounting for climate change and sustainability initiatives for the first time.
ESRS are as complex as IFRS to implement
PEPs
The government has published guidelines on the meaning of prominent public functions. Prior to the guidance there was uncertainty as to who was and was not a politically exposed person (PEP).
The guidelines will assist firms to identify PEPs when conducting their risk assessment. They clarify that, for example, a county councillor is not a PEP unless they are also a member of the governing body of a political party.
Sustainability
The Department of Enterprise, Trade and Employment (DETE) held a webinar in January on the EU’s corporate sustainability reporting directive and the European Sustainability Reporting Standards (ESRS) arising out of it. Ireland and other member states now have until mid-2024 to transpose the directive. DETE has launched a public consultation on member state options contained within the directive.
Disclosures under ESRS will shortly become mandatory for Irish businesses. The implementation dates are based on company size, with the first companies coming in scope next year. ESRS are as complex as IFRS to implement and will require some planning and data capture.
