Newswire November 2024

AUDIT & ACCOUNTING

Revised ISA (UK) 600 Special Considerations - Audits of group financial statements comes into force 

The FRC’s revised ISA (UK) 600 Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors) (Revised September 2022), which is effective for periods beginning on or after 15 December 2023, is likely to be impacting auditors planning for their December 2024 year end group audits for the first time, although some may already be familiar with the changes having early adopted and / or undertaken group audits with shortened reporting periods. 

For those looking a reminder of the impact of revised ISA (UK) 600, the following course outlines the key changes auditors need to be aware of: Groups - Audit Issues including ISA 600. 

The Secretary of State for Business and Trade confirms the UK government’s commitment to reforming company law and increasing company size thresholds 

The Secretary of State for Business and Trade has announced, in a ministerial statement that the UK government is committed to reforming company law and will lay legislation by the end of the year which will uplift the monetary size thresholds for micro-entities, small and medium-sized companies, as well as making technical fixes to the UK’s audit framework. The statement comments that the changes will benefit up to 132,000 companies who will move to a smaller size category, with lighter-touch accounting and reporting requirements more proportionate to their size. 

Companies House publishes an outline transition plan in respect of the Economic Crime and Corporate Transparency Act 

Companies House has published an outline transition plan in respect of the Economic Crime and Corporate Transparency Act. 

Companies House comments that the Economic Crime and Corporate Transparency Act (2023) will reform the role of Companies House and improve transparency over UK companies and other legal entities. The transition plan outlines the Registrars’ objectives, an overview of the changes and plans for implementation including the current intended timescales. 

For more on this, you can read our blog here. 

Home Office publishes guidance to organisations on the offence of failure to prevent fraud in respect of the Economic Crime and Corporate Transparency Act 

The Home Office has published guidance to organisations on the offence of failure to prevent fraud in respect of the Economic Crime and Corporate Transparency Act. 

The guidance sets out procedures that relevant bodies can put in place to prevent persons associated with them from committing fraud offences. 

Department for Business and Trade publishes a summary of responses to its simpler corporate reporting consultation 

The Department for Business and Trade has published a summary of responses to its simpler corporate reporting consultation. 

The consultation launched on 16 May 2024 sought views on 2 proposals: 

• raising the employee threshold for medium-sized companies to 500 employees; and 

• exempting medium-sized companies from preparing a Strategic Report. 

For more on this, you can read our blog here. 

FRC publishes emerging findings from sustainability assurance market study 

The FRC has published initial feedback on its market study into the assurance of sustainability reporting. Launched in March 2024, this is the first market study carried out by the FRC. Led by the FRCs recently established Market Intelligence and Insights function, the study has been designed to explore how the market for sustainability assurance is functioning and developing in the UK. 

For more on this, you can read our blog here. 

UKEB call for comments: Draft Endorsement Criteria Assessment on Annual Improvements to IFRS Accounting Standards – Volume 11 

The UKEB has published a Draft Endorsement Criteria Assessment (DECA) on the potential use in the UK of the IASB’s Annual Improvements to IFRS Accounting Standards – Volume 11. 

The Amendments are effective for annual reporting periods beginning on or after 1 January 2026, with early application permitted, subject to UKEB’s decision to formally adopt them for use in the UK. 

The UKEB invites stakeholders’ views on the DECA conclusions regarding potential UK adoption of the Amendments by 17 January 2025. 

ACADEMIES 

Academy trust management accounting guidance published 

The Education and Skills Funding Agency has published Academy trust management accounting guidance to help academy trusts with their management accounting process in line with the requirements of the Academy trust handbook. 

Academy trust financial management good practice guides updated 

The Education and Skills Funding Agency has published updates to the Academy trust financial management good practice guides on 'Managing academy trust reserves' and 'Academy trust management accounting'. 

PENSIONS 

PRAG publishes updated guidance on Pension Scheme TCFD Governance and Reporting Requirements 

The ESG Working Party of the Pensions Research Accountants Group (PRAG) has published updated guidance on Pension Scheme TCFD Governance and Reporting Requirements. PRAG members are able to access the guidance here. 

PRAG publishes new guidance on Accounting for the Financial Sustainability Requirements for a Master Trust 

PRAG has also published new guidance on Accounting for the Financial Sustainability Requirements for a Master Trust which aims to provide practical guidance for pension scheme accountants in understanding how to address sustainability requirements for Master Trusts in accordance with the 2018 SORP. PRAG members are able to access the guidance here. 

ICAEW 

ICAEW updates its factsheet on preparing and filing UK small entity accounts 

The ICAEW has updated its factsheet on preparing and filing UK small entity accounts to reflect recent developments including the Periodic Review 2024 amendments, the Economic Crime and Corporate Transparency Act 2023 and planned legislation to increase monetary size thresholds. 

ICAEW publishes Audit News 75 

The ICAEW has published Audit News 75. This edition covers the recent updates to the UK Audit Regulations commenting some changes could impact on firm’s eligibility to be audit registered and urging firms to act now to ensure compliance. It also covers the 2023/2024 Audit Monitoring Report plus an update on ISQM 1 monitoring. 

ACCA 

ACCA publishes a factsheet examining the new lease accounting treatments 

The ACCA has published a new technical factsheet examining the new lease accounting treatments in FRS 102 (September 2024) which become mandatory for accounting periods commencing on or after 1 January 2026, although early adoption is permissible, provided that all the periodic review amendments are applied at the same time. 

ANTI-MONEY LAUNDERING 

ICAEW publishes AML – the essentials, issue 33 

The ICAEW has published issue 33 of AML – the essentials. This edition covers the ICAEW’s thematic review on the firm-wide risk assessment and the AML Supervision Report. It also signposts recent updates including a Companies House timeline for corporate reform, UKFIU publications and changes to the list of high-risk third countries. 

TAXATION

HMRC issue briefing: Evidence required to claim PAYE (P87) employment expenses

This briefing sets out the new process for claiming PAYE employment expenses that came into effect on 14 October 2024. To read more, please click here.

Clarification on the abolition of the furnished holiday lettings tax regime

HMRC have updated their guidance on the abolition of the furnished holiday lettings tax regime. To read more, please click here.