2018 has been a busy year for Croner-i, and we don’t plan on slowing down any time soon. Julia Bowyer ACA, Content Manager for Audit & Accounting, sets out her review of 2018 and looks ahead to 2019. Read on to see what new developments Julia brought to our audit and accounting products in 2018, and what the focus will be for next year.
With such a broad range of commentaries and tools available across audit, accounting, corporate governance, specialist sectors and law, the Croner-i Audit & Accounting content team have certainly been kept busy in 2018. And lots more change is to come in 2019 and beyond.
UK GAAP and Company Law
In the first few months of each year, one key workstream is updating the Preparing Series of books and online guides. Key developments in 2018 were flagging the triennial review changes to UK GAAP, and covering the changes in the charities sector. The 2019-2020 books are based on 2019 year-ends, so triennial review changes and other updates are now being incorporated throughout the commentary, model accounts and checklists.
We will of course need to wait and see what happens with Brexit, and whether the draft legislation that may open up the small company regime to more entities will become effective on exit date.
GDPR also had a massive impact for all businesses. We consulted with lawyers in the Peninsula Group legal team and in practice, to include GDPR guidance and clauses in our Engagement Letter Toolkit and other practice management products.
Having published the Pensions SORP for PRAG in summer 2018 that incorporates recent changes to FRS 102, that and other updated SORPs will become effective in January 2019. The Charity Update Bulletin 2 will also be effective, while the Charities Commission are consulting on how to update the charities SORP, with the new SORP expected to come out in 2021. The LLP SORP is expected any day.
The revised Solicitors’ Handbook came out in October 2018 with relatively little change. We’re still awaiting a significant overhaul of the Solicitors Accounts Rules at some point, perhaps in 2019 – see our Client Money Programmes Stop Press page for more details.
IFRS and Corporate Governance
As IFRS 16 becomes effective at the start of January with what will be a significant impact for many, the Company Reporting team have been reviewing disclosures made of the expected impact as required by IAS 8.
We also look forward to seeing the first sets of accounts that fully adopt IFRS 9 and IFRS 15. These standards have more of an impact in some sectors than others, though a significant amount of work is being done to model expected credit losses and review contracts.
We read with interest the FRC’s Annual Review of Corporate Governance and Reporting Review report 2017/2018, albeit the themes and concerns tend to be similar each year. As part of our Company Reporting service, we’ll be researching sets of accounts for the issues picked up, such as judgements and estimates.
The 2018 UK Corporate Governance Code, FRC Guidance on the Strategic Report, and Miscellaneous Reporting Regulations all take effect from 1 January 2019. The Wates Principles will also have a significant impact for Large Private Companies.
Finally, and of much concern to audit practitioners, the world of audit is about to get shaken up much as ‘New UK GAAP’ did for the world of accounting.
The new auditing standards, ISA 540 on estimates and ISA 315 on risk, have been subject to much debate and discussion, particularly around their scalability. Bringing them in to our audit products and tools will be the next big content update challenge – alongside Brexit.