Newswire October 2021

AUDIT & ACCOUNTING

 

IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’

The FRC has published the findings of its review into  IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, which has been identified as a recurrent problem area by the FRC. The requirements of IAS 37, are very similar to the requirements in section 21 of FRS 102 ‘Provisions & Contingencies’ and thus are helpful to users of both IFRS and FRS 102 financial statements. The review found scope for improvements in several areas, in particular, disclosure of quantitative information on expected timing of future economic outflows, the key assumptions used to estimate those outflows, and the associated uncertainties. The FRC also identified opportunities to clarify the nature of the costs included in certain types of provision, to disclose more specific accounting policies and to provide more quantitative information about contingent liabilities.

 

FRC review of Alternative Performance Measures by UK companies finds room for improvement

The FRC has reviewed the use of Alternative Performance Measures (APMs) by UK-listed companies and has found that companies need to be more transparent about their use, and linkage to their IFRS or UK GAAP results (GAAP results). Companies need to clearly define their APMs and explain why they are needed and explain the context of the APM, especially as they are often more favourable than the GAAP results.

 

2022 FRC Taxonomies suite 

The FRC has issued the 2022 suite of FRC taxonomies including updates for the Streamlined Energy and Carbon Reporting (SECR) taxonomy and digitally enabling Gender Pay Gap reporting and Academy reporting. It is expected that Companies House will have enabled this suite by 1 April 2022.

 

Updated ICAEW help sheets and guidance 

The ICAEW have updated their technical advisory help sheet on ‘Change of professional appointment - outgoing accountant’.   This update includes adding an example of how you might reply if you have made a SAR – example was for undeclared rental income. 

The ICAEW have published practical guidance and training materials to assist auditors in embedding what good looks like in your firm in the context of the audit of going concern.

 

The Occupational and Personal Pension Schemes (Disclosure of Information) (Statements of Benefits: Money Purchase Benefits) (Amendment) Regulations 2021 

The regulations were laid before parliament on the 14 October 2021 and come into force on 1 October 2022 and extend to England and Wales and Scotland. The amendments place a new requirement on trustees or scheme managers of certain occupational and personal pension schemes offering money purchase benefits (defined contribution (DC) pension schemes) and which are used for automatic enrolment to provide that a statement given to certain members informing them of their pension savings must not exceed one double-sided sheet of A4-sized paper when printed, and the equivalent if printed from an online statement. This is to enable members in automatic enrolment schemes to better engage with their pension savings through a short, simple document which can help increase their awareness and understanding of their pension savings. 

 

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TAXATION

 

Delays to processing 2020/21 tax returns-SEISS grants

The ATT has published HMRC’s update for its members where HMRC has confirmed that it has now corrected all the returns submitted before 19‌‌ ‌June where SEISS grants were not reported correctly. HMRC will continue to correct the SEISS grant amounts included in 2020/21 returns submitted after that date.

 

£800m Reinsurance Scheme officially opens to help give festivals, conferences and live events cover to plan with confidence

The Chancellor has launched a scheme worth over £800m to cover Covid-related cancellation costs for live events.

 

Joint and several liability notices for tax avoidance, tax evasion and repeated insolvency

HMRC have published new guidance detailing how it deals with taxpayers who are involved in tax avoidance, tax evasion or repeated insolvency who receive a joint and several liability notice.

 

Changes for taxi, private hire or scrap metal licence applications from April 2022

HMRC have released guidance on what businesses need to do to meet new rules if they are applying for a taxi, private hire or scrap metal licence on or after 4 April 2022.