Green mortgages
The Irish central bank has issued a financial stability note on the growth of green mortgage financing in Ireland. The green mortgage is a recent financial innovation that offers lower borrowing rates for households and businesses that invest in energy-efficient buildings.
Most banks extend such green loans for properties with a building energy rating (BER) of B3 or better. The typical discount of 30 basis points can be sufficient incentive to encourage borrowing to upgrade a building’s energy performance.
There is a link between high energy efficiency and reduced levels of default
The lender’s security is enhanced by the energy efficiency premium associated with green buildings. There is also a link between high energy efficiency and reduced levels of default, which may arise because families with higher disposable incomes are more likely to be able to afford energy-efficient buildings or because energy-efficient buildings lead to higher disposable incomes (through lower energy bills) for homeowners.
Utilities
Updated guidance has been issued for the engagement of auditors for the 2023/24 period by suppliers with public service obligations. The document is relevant to all renewable electricity support scheme (RESS) suppliers making submissions to the Commission for the Regulation of Utilities (CRU) for 2023/24. The updates reflect the revised ISRS 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information.
Revenue contact
Where a practitioner is unable to contact Revenue through normal channels and there is an urgent need to do so, they should use its exceptional contacts facility. Revenue has indicated it expects such exceptional situations will be confined, in the main, to peak filing periods.
Impersonation is a concern, given fraudsters can use AI to create personas
Money laundering
In issue 20, the UK National Crime Agency’s SARs in Action publication looks at money laundering trends in the UK. Focusing on the most common types of fraud, it identifies investment fraud as a risk when investors are chasing higher potential returns on their funds, often through crypto assets, and notes that criminals will exploit social, political and economic events to target victims. Impersonation is a concern, given fraudsters can use AI to create personas, and the newsletter also discusses romance fraud, money mules, fraud communications, and the accountancy sector as an attractive target for payment diversion fraudsters.
PPSN for directors
ACCA has published guidance for members on the issues arising from the requirement to file each director’s PPSN (the unique reference number needed for all dealings with Irish public service agencies) with the Companies Registration Office.
Late filing
ACCA has made a submission with CCABI on behalf of members to the Department of Enterprise, Trade and Employment’s public consultation on proposed changes to the Companies Act 2014. Of most immediate interest to many members is the proposal to allow companies to be late filing their accounts one year in five without losing audit exemption.
ACCA completed 46 quality assurance reviews during the year
Audit results
The Irish Auditing and Accounting Supervisory Authority (IAASA) has published its 2022 annual audit programme and activity report. It reveals that 63 (17%) of the 125 audit firms that voluntarily surrendered or did not renew their audit status in 2022 were ACCA auditors (23 were CPA, 39 CAI). In the same year, ACCA licensed 276 auditors in Ireland (CPA 289, CAI 494) and issued 17 new audit licences (CPA 9, CAI 17).
IAASA’s analysis of audit monitoring by the professional bodies shows ACCA completed 46 quality assurance reviews during the year. Five were judged to be good and 37 acceptable, and four required significant improvements.
CRBOT
The central register of beneficial ownership of trusts (CRBOT) has been available for inspection to designated persons since October 2021. A designated person can access the register when they enter into an occasional transaction or form a business relationship with a trustee, or when they are undertaking customer due diligence in relation to a relevant trust.
Revenue has produced an information booklet on how to access the register. Note that designated persons have a duty to report discrepancies between the beneficial ownership of a trust and the information recorded on CRBOT.
IAASA identified unsubstantiated net zero plans
Fair review
Section 327 of the Companies Act 2014 requires companies to publish a management report setting out a fair review of the development and performance of the business and the position of the company, along with a description of its principal risks and uncertainties. IAASA has reviewed some of the disclosures.
Matters identified include unsubstantiated net zero plans in one case, and in another an overemphasis on multiple profit measures without addressing the IFRS loss made by the company.
SME examinership
An ACCA factsheet addresses recent changes in on small business examinership legislation and should assist in the rescue of small and medium-sized enterprises (SMEs) by members acting as advisers.
