Newswire January 2023

AUDIT & ACCOUNTING

Periodic Review of financial reporting standards proposes revised revenue and lease accounting amongst other improvements

The FRC has issued FRED 82 Draft amendments to FRS 102 The Financial reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review. The FRED 82 proposes a number of changes including a new model of revenue recognition and a new model of lease accounting. Comments are requested by 30 April 2023. Our blog has more detail on these proposals. 

UKEB publishes Call for comments on Draft Endorsement Criteria Assessment of Lease Liability in a Sale and Leaseback

The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment (DECA) on Lease Liability in a Sale and Leaseback - Amendments to IFRS 16 (the Amendments) issued by the International Accounting Standards Board (IASB) in September 2022. Those wanting to comment on the proposals have until 5 April 2023 to do so.

FRC announces areas of supervisory focus for 2023/24

The Financial Reporting Council (FRC) has announced its areas of supervisory focus for 2023/24, including priority sectors, for corporate reporting reviews and audit quality inspections. These will include going concern, fraud risks, climate-related risks, and risk identification and assessment.

FRC launches Audit & Assurance Sandbox

The FRC has launched its Audit & Assurance Sandbox, a collaborative space for approaching issues facing the audit and assurance industry, to support high quality audit and assurance work. The sandbox offers a confidential environment for relevant parties to discuss ideas and technical issues in audit and assurance policy areas such as the application of the FRC’s auditing, assurance and ethical standards, relevant technologies, ESG and competition.

FRC publishes "What makes a good Annual Report and Accounts" report

The FRC has published ‘What makes a Good Annual Report and Accounts’ which sets out the attributes for a high-quality Annual Report and Accounts (ARA).

IASB publishes its review of classification and measurement requirements relating to financial instruments

The International Accounting Standards Board (IASB) has published its project report and feedback statement concluding the Post-implementation Review of the classification and measurement requirements in IFRS 9 Financial Instruments. This shows that the requirements set out in IFRS 9 are working as intended and provide useful information to the users of financial statements.

New IAASB fact sheet helps auditors navigate quality management for group audits

The International Auditing and Assurance Standards Board (IAASB) has published a new fact sheet on the interactions between International Standard on Audit (ISA) 220 (Revised), which addresses quality management at the engagement level, and ISA 600 on group audits. The fact sheet highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1 addressing quality management at the firm level.

INVESTMENT BUSINESS

ICAEW issues DPB Update 14

The ICAEW has issued DPB Update 14 which provides guidance on referrals to financial advisers and sets out other support available to DPB licensed firms.

Spring Budget 2023

The Government has announced that there will be a Spring Budget on 15 March 2023. To read more, please click here.

And MTD deferred??

The Government has also announced that MTD will be delayed until 2026 at the earliest. To read more, please click here.

10-year bankruptcy restrictions for Uxbridge clothes wholesaler who abused Bounce Back Loan

A West London clothing trader exaggerated his turnover by more than ten times the actual amount to falsely claim a Covid loan. To read more, please click here.

The Government unveils new Energy Bills Discount Scheme for businesses

The Government announced the new Energy Bills Discount Scheme for UK businesses, charities and the public sector from April. To read more, please click here.