Category Archives: Blog

The five fundamental principles of ethical behaviour

A reminder of what they are before the new Code of Ethics comes in The nature of accountancy and the complexity of the work that accountants, tax advisers, insolvency practitioners and auditors do, means that this work needs to be trusted, and demonstrate the highest standards of professional conduct.  The Code of Ethics and its… Read More


How do I account for a change in depreciation policy?

A question that I often get asked is: how are changes in depreciation policy accounted for?  The follow up question usually asked is whether such changes are accounted for prospectively or retrospectively under FRS 102?  The answer, however, depends on whether the change is a change in ‘estimate’ or a change in accounting ‘policy’. Change… Read More


The OECD ban on ‘bearer shares’ proves effective for tax transparency

A ten-year anniversary meeting of the Global Forum, celebrating the global impact of tax transparency, was held in Paris recently.  It was hosted by the OECD – Organisation for Economic Co-operation and Development – which has been promoting tax transparency over the last decade.  Two features of the OECD tax transparency agenda are:  Exchange of… Read More


Have you prepared your Business Risk Assessment?

A new requirement – to protect firms against the risk of money laundering – came into law last year, but many firms may not yet have prepared the relevant document. The Fourth Money Laundering Directive (2015/849/EC) was transposed into Irish legislation in November 2018 by way of the Criminal Justice (Money Laundering and Terrorist Financing),… Read More


Money laundering exposed by undercover journalists

Journalists at the London Times are to be congratulated for today, 4 December 2019, exposing a web of alleged money laundering centred on a company formations business based in London. Of course, the story was originally covered by Guardian journalist Oliver Bullough in 2016 and in his 2018 book ‘Moneyland’. The Times reported: ‘Leaked documents… Read More


EU proposes new anti-money laundering body in wake of scandals

In a recent Financial Times story, it was reported that the EU is proposing to set up a new anti-money laundering body in the wake of recent money laundering scandals. EU finance ministers are expected to meet in December and propose the setting up of a new independent body to enforce money laundering prevention measures… Read More


The hard facts about Reverse Factoring – Part 3

As we pointed out in our last two blogs here and here, Carillion was less than transparent in its 2016 financial statements about its reverse factoring arrangements.  For a much better explanation of supply chain financing (an alternative name for reverse factoring), see Note 19 ‘Trade and Other Payables’ on page 177 of the 2018… Read More


Reverse Factoring – Part 2: Watch the disclosures

Factoring in Ireland and the UK worth more than €400 billion. Last week we discussed how reverse factoring works. Now we look at how it works in a little more detail. Broadly there are two different objectives from the originator for such schemes:  1) Supplier focused – to support smaller suppliers  2) Company focused –… Read More


Do your clients use Reverse Factoring?

Some lessons for us all from the Carillion collapse. A very useful publication was issued recently by the little known Financial Reporting Council Lab called ‘Disclosures on the Sources and Uses of Cash’. Tucked away in the appendix of the publication is a very interesting explanation of reverse factoring. This financing method had a role… Read More


Big questions about Going Concern

The UK audit regulator has revealed that among the key reasons for launching an investigation into the collapse of Thomas Cook were ‘issues around going concern and goodwill impairment.’ As if on cue, the Irish audit regulator IAASA, has just issued (October 2019) a revision to the audit standard on Going Concern, called ISA 570.… Read More