AUDIT & ACCOUNTING
FRED 71: Draft amendments to FRS 102
The FRC have issued FRED 71 Draft amendments to FRS 102 - Multi-employer defined benefit plans.
FRED 71 proposes new, explicit requirement for how an entity applying FRS 102 transitions from defined contribution to defined benefit accounting when sufficient information to do so becomes available. This is an area in need of clarification as some multi-employer defined benefit plans have started carrying out exercises to provide sufficient information, as seen with the Social Housing Pension Scheme.
It is proposed that the amendments are effective for accounting periods beginning on or after 1 January 2020, with early application of the final amendments permitted. The comment period for FRED 71 closes on 31 March 2019.
FRED 70: Draft amendments to FRS 101
The FRC have issued FRED 70 Draft amendments to FRS 101 - 2018/19 cycle.
FRED 70 arises from the FRC's annual review of FRS 101. These annual reviews ensure that FRS 101 remains conversant with changes to EU Adopted IFRS that form the basis of recognition and measurement requirements under the reduced disclosure framework. Due to compatibility issues between company law disclosure requirements and those of IFRS 17 Insurance Contracts, FRED 70 proposes that entities required to use Companies Act accounts formats (or similar for non-companies), that also fall within the scope of IFRS 17, shall not be permitted to use FRS 101. The comment period for FRED 70 closes on 30 April 2019.
Reporting matters of material significance to the charity regulators
The Charity Commission have published an Accounts Monitoring Review that follows up on its February 2018 review of reporting matters of material significance by charity auditors. This update outlines steps the commission has undertaken, including raising awareness in the profession and communications with individual auditors that had not reported.
The February 2018 review highlighted that of an expected 114 reports in relation to non-standard audit reports filed after the May 2017 changes, only 28 'whistleblowing' reports were received from the auditors.
This update notes the common reasons given for not having reported and sets out that in future the Commission will simply report non-compliant firms to their relevant professional body, rather than engaging in dialogue beforehand. The update also noted that of its sample, 14 charities had submitted the wrong version of the audit report to the Charity Commission in error. Guidance on reporting matters of material significance can be found here.
Audit rights in Ireland
The ICAEW has received an indication from the Irish audit authorities that, in the event of a no-deal Brexit, non-Irish resident firms currently on the Irish Audit Register are unlikely to retain automatic audit rights in Ireland. ICAEW have published more information here.
Technical manuals news
We have issued an update to our Practice Assurance Compliance Manual. If you are a subscriber and have any administrative questions about this update, please email our Technical Manuals Team or call us on 0116 258 1200.
Spring Statement 2019 date confirmed
Chancellor Philip Hammond will present the Spring Statement on Wednesday 13 March 2019. To read more please click here.
HMRC publish draft guidance on non-resident capital gains from 6 April 2019
HMRC have published draft guidance on non-resident capital gains from 6 April 2019. To read more, please click here.
HMRC announces top 10 prosecutions of 2018
Smugglers, potential arms dealers and globe-trotting tax fugitives all feature in HMRC's top 10 criminal cases of 2018. To read more, please click here.
Turkey dinner and tax returns
More than 10,000 Self Assessment returns were filed on Christmas Day and Boxing Day. To read more, please click here.
Self Assessment returns: unbelievable excuses and dubious expenses
HMRC have released more rather strange reasonable excuses. To read more, please click here.
OFFICE GOSSIP & IDLE CHAT
Movers and shakers
This month we are pleased to welcome on board Joelle McKie and Kristina Parmar. Joelle has joined us as our Team Assistant while Kristina has joined as a Salesforce Support Executive.