Newswire June 2024

Newswire June 2024

Welcome to our June Newswire.

At last, the sun is shining and Summer seems to have arrived.

But before we head off on well-deserved holidays there’s much still to be done, and we’re brimming with anticipation, not only for the outcome of the Euros but of course the General Election.

The three main parties in the UK have released their manifestos ahead of the General Election on 4 July. If you haven’t yet had time to read the manifestos in full, do read Helen Knight’s blog which will give you our view on some of the key tax promises and other measures impacting UK businesses.

Sustainability reporting will affect accountancy firms and their clients over the next few years. Despite the UK’s exit from the European Union, some UK companies may be required to comply with the Corporate Sustainability Reporting Directive (CSRD). Take a look at Ross Haydock’s blog as he explores which companies may be caught by this legislation and how this will impact their reporting requirements.

We are also proud to announce Mercia was awarded the prestigious Digital Innovation of the Year Award at this year's International Accounting Awards for our Early Careers Audit Training Programme which has received fabulous client feedback. Find out how our Early Career Programme can support your business.

In our Newswire, we look at HMRC’s guidance on football agents' fees and dual representation contracts and the National Audit Office’s report on HMRC’s customer service - please see the tax section for details. On the audit side, we look at progress on implementing and operating the Economic Crime and Corporate Transparency Act 2023 and updated guidance for charities on campaigning about political issues.

See you in July when of course we’ll know the outcome of both events and hopefully the sun is still shining!

CATCH UP WITH OUR LATEST BLOG POSTS

INTERNATIONAL ACCOUNTING AWARDS 2024

DIGITAL INNOVATION OF THE YEAR

Mercia is the proud winner of the ‘Digital Innovation of the Year Award’ for our innovative Early Careers Audit Training Programme, supporting and developing those new to the audit profession.

Learn more

AUDIT & ACCOUNTING

Department for Business and Trade issues a progress report on the implementation and operation of Parts 1 to 3 of the Economic Crime and Corporate Transparency Act 2023 

The Department for Business and Trade has published a progress report on the implementation and operation of Parts 1 to 3 of the Economic Crime and Corporate Transparency Act 2023. 


IASB issues narrow-scope amendments to classification and measurement requirements for financial instruments 

The IASB has issued amendments to the classification and measurement requirements in IFRS 9 Financial Instruments. The amendments will address diversity in accounting practice by making the requirements more understandable and consistent. 


IASB proposes IFRS Accounting Taxonomy update for IFRS 18 

The IASB has published proposals to amend the IFRS Accounting Taxonomy to reflect the new presentation and disclosure requirements introduced in IFRS 18 Presentation and Disclosure in Financial Statements. 

IFRS 18 enhances the structure of the statement of profit or loss and improves comparability of information about companies’ financial performance alongside introducing specific disclosure requirements for management-defined performance measures and specified expenses by nature. The proposed update intends to facilitate comparability and analysis of tagged information. 

The proposed changes include: 

  • line-item modelling for conveying category information (such as, operating, investing, financing) for the statement of profit or loss; and 

  • dimensional modelling for tagging disclosures on management-defined performance measures (MPMs) and specified expenses by nature, as these link to information in the statement of profit or loss. 

The IASB is inviting feedback on these proposals and the deadline for submitting comments is 3 September 2024. 


GRI and IFRS Foundation collaboration to deliver full interoperability that enables seamless sustainability reporting 

In response to market demand, the two organisations have announced they will collaborate to optimise how GRI and ISSB Standards can be used together. 

CHARITIES 

Updated guidance for charities on campaigning about political issues 

With the general election soon approaching, the various bodies that regulate charities across the UK have issued guidance on campaigning about political issues. 

The Charity Commission, which regulates charities in England and Wales, has issued guidance on charity campaigning in a general election period. Aimed at trustees, the guidance reminds readers that charities can take part in political activity that supports their purpose and is in their best interests, however, charities must follow the law when doing so. 

The OSCR has also updated their guidance for Scottish charities campaigning on political issues. The guidance takes the form of frequently asked questions, and includes helpful information about relevant topics including: 

  • how can charities engage with political parties and politicians?  

  • can charities take part in joint or local political campaigns?  

  • what do charities in Scotland need to do to comply with electoral and charity law? 

The Charity Commission for Northern Ireland has written a blog regarding charities and political campaigning and the need to stay on the right side of the law. The blog outlines that the guiding principle of charity law in terms of campaigning, political activity and elections is that charities should be, and be seen to be, independent of party politics. 

LLPS 

CCAB issues revised LLPs SORP 

The CCAB has published a revised LLPs SORP. 

The CCAB state that the SORP has been updated to reflect The Limited Liability Partnerships (Climate-related Financial Disclosure) Regulations 2022 (SI 2022/46) which require certain LLPs and groups to make climate-related financial disclosures aligned with the Taskforce for Climate-related Disclosures (TCFD) recommendations. 

The CCAB also comment that additional guidance has been added to the SORP in relation to: 

  • the sharing of group profits and amounts payable to former members; 

  • post-retirement obligations in the context of FRS 103 Insurance Contracts; 

  • certain scenarios when section 26 Share-based Payment of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland might apply to post-retirement payments to members; and 

  • the treatment of profits which are automatically divided to members who do not provide any substantive services to the LLP. 

In addition, other minor amendments have been made to the LLPs SORP to enhance its clarity. 

The revised LLPs SORP is effective for periods commencing on or after 1 July 2024, with early adoption permitted. 

ICAEW 

Audit Regulations consultation: notification of movement of audits 

The ICAEW is proposing to make changes to the UK Audit Regulations and Guidance which will require audit registered firms to notify ICAEW when they are appointed as auditors to certain entities. Notification would also be required where audit fees are significantly higher than fees in the firm’s existing portfolio. The aim is to increase the transparency of the movement of these audits between audit firms. The ICAEW are seeking feedback on the potential impact of these proposals and, following the consultation process, revised regulations are expected to come into effect in early 2025. 

The consultation is open from 6 June to 6 September 2024. 

TAXATION

Help with football agents' fees and dual representation contracts

HMRC has published guidance on football agents' fees and dual representation contracts. To read more, please click here.


National Audit Office Report: HMRC customer service

The National Audit Office (NAO) has published a report examining the extent to which HMRC is well-placed to provide the services taxpayers need within its planned resources. To read more, please click here.

EARLY CAREERS PROGRAMME INDUCTION WEEK FOR NEW STARTERS

Mercia’s Induction Week equips new starters with the knowledge and practical experience in preparing a complete set of financial statements.

Included in programme:

  • Bookkeeping - The First Principles
  • Bookkeeping - The Next Stage
  • Bookkeeping Case Study

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ANNUAL UPDATE CONFERENCE

19 – 20 September 2024

Join Mercia for our in person Annual Update Conference this September.  

This conference is an ideal opportunity for the general practitioner to stay updated on various topical issues.

Key topics will include the latest VAT changes, planning tools, corporation tax issues, updates to audits and accounts, and much more. This conference is 1.5 days and includes dinner and accommodation.

Mercia members will receive a 10% discount (per place).

Book now

TRANSFORM TAXES INTO OPPORTUNITIES

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Communicate tax changes and support your clients effortlessly with Mercia's easy-to-understand and ready-to-distribute tax content. Use our expert content in your email newsletters, marketing campaigns, on your website and social media platforms.

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MERCIA PODCAST

Wellbeing and Resilience in the Workplace

Louise Connor highlights the evolution of workplace wellbeing, defines its key components, and provides practical strategies for managing pressure and stress.

Discover insights on fostering a supportive work culture and maintaining a healthy, productive environment.

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