AUDIT & ACCOUNTING
FRC Lab publishes tips to effectively communicate net zero commitments
The FRC Lab has published a report on disclosing net zero commitments. It provides companies with practical tips and questions to consider when communicating what their net zero commitment includes, how it may impact the strategy and business model, and how performance against commitments is being measured in the short, medium and long-term.
Post implementation review of auditing standard ISA (UK) 540 (Revised December 2018)
The FRC has opened a post implementation review of the auditing standard (ISA) (UK) 540 (Revised December 2018) Auditing Accounting Estimates and Related Disclosures. This became effective for audits of accounting periods beginning on or after 15 December 2019. The call for feedback is open until 13 January 2023.
FRC review of the accounting and reporting for business combinations
The FRC has published a thematic review of the accounting and reporting for business combinations. These tend to be significant but infrequent transactions that give rise to issues outside the routine work of the accounting function. The FRC was generally pleased with the quality of reporting of business combinations; however, the report does identify a number of areas where there is scope for improvement.
FRC publishes revised version of ISA (UK) 600 Special Considerations — Audits of group financial statements
The FRC has published revised ISA (UK) 600 Special Considerations - Audits of Group Financial Statements (Including the Work of Component Auditors) (Revised September 2022). The revisions build upon the recently revised international version of the standard, with an enhanced focus on the risk of material misstatement at the financial statement level and the need for robust communication between group and component auditors. The revised standard will come into force for accounting periods commencing on or after 15 December 2023.
FRC review of companies' deferred tax asset disclosures
The FRC has published its thematic review of deferred tax assets. The review considers the basis of recognition of, and disclosure in relation to, deferred tax assets in the light of the effect of the Covid-19 pandemic on companies’ profitability. It follows the FRC's previous tax thematic review, issued in October 2016.
IASB issues narrow-scope amendments to IFRS 16
The IASB has issued amendments to IFRS 16 Leases, which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. The amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction after the transaction date. These amendments are now being considered by the UK Endorsement Board for adoption in the UK.
CHARITIES
Charity Commission warns of cybercrime risk ahead of Charity Fraud Awareness Week
The Charity Commission is warning charities against the risk of online fraud, as a new survey found around one in eight charities (12%) had experienced cybercrime in the previous 12 months.
TAXATION
Update on the Autumn 2022 fiscal statement
The Chancellor has announced that the publication of the OBR’s forecast will be set to a later date of 17 November 2022 and will accompany the Chancellor’s Autumn Statement. To read more, please click here.
Decision tool and calculator for the 130% super-deduction and the 50% special rate capital allowances
HMRC have published an interactive tool to help companies check if they can claim for the super-deduction of up to 130% or the 50% special rate first year allowances for qualifying expenditure on plant and machinery. To read more, please click here.
Government to establish expert Economic Advisory Council
The Chancellor has announced that he will convene an expert panel of respected economists as part of a new Economic Advisory Council. To read more, please click here.
Mercia Group 
26 October 2022 00:00
