Tag Archives: FRS 102

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


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


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



Ethical matters: Change is coming to auditing standards in Ireland

In July, the Financial Reporting Council (FRC) in London issued a consultation on proposed changes to the UK’s Ethical and Auditing Standards. It closed on September 27, 2019. The consultation is expected to introduce revisions that will see tougher regulations on audit independence and the provision of non-audit services. Any changes that are approved will… Read More


Reporting money laundering offences

The Criminal Justice (Money Laundering and Terrorist Financing) Acts, 2010 to 2018 requires firms to report suspicious transactions based on the premise that a person ‘knows, suspects or has reasonable grounds to suspect, based on information obtained in the course of carrying on business as designated person’ that another person is involved in money laundering… Read More


Record keeping and the RBO

The Criminal Justice (Money Laundering and Terrorist Financing) Acts, 2010 to 2018 updates the 2010 legislation that was already in place. Among other things it is essential to arrange staff training with all members of your team to ensure they are up to date with the latest changes. It is also vital to have an… Read More