Ecovis in Lithuania

Resident Director Services Australia: Expert Guidance for International Businesses

08.11.2024

David Conley brings over 25 years of experience in tax and business consulting to his role as a director of Sydney accounting and business advisory firm, ECOVIS Clark Jacobs. His career journey, which includes stints at global firms such as Ernst & Young, Deloitte and PwC, has equipped him with a unique perspective on the importance of tailored, client-focused solutions.

One of David’s specialisations is resident director services, addressing the needs of international businesses entering the Australian market. Under Australian law, a proprietary company must have at least one director who is a resident of Australia. When non-resident clients cannot identify a suitable director, David steps in to provide this essential service.

In this role, David is able to help deal with the challenges that companies face when entering the Australian market. “Many companies struggle with local compliance requirements, from ASIC and ATO compliance, through to employment and payroll issues.  An increasingly important issue is also navigating the complexities of Australian tax law around transfer pricing matters, but we have the local expertise to ensure these are dealt with as required” he notes.

The scope of resident director services includes ensuring compliance with the Australian Corporations Act, fulfilling regulatory reporting obligations, and offering strategic support for business growth. As both an accountant and advisor, David takes a holistic approach to client relationships, effectively acting as a ‘guardian’ of their Australian operations.

“Within the accounting function, our firm can also provide bookkeeping and payroll services and connect clients with suitable HR and legal advisers,” David explains. “This is invaluable to parent companies overseas, as they can trust that their Australian subsidiary is managed by a single provider with its best interests at heart.”

A notable trend David observes is the growing emphasis on offshore companies undertaking Research & Development (R&D) in Australia. “The government’s active promotion of R&D particularly through tax incentives presents significant opportunities, across all industries, even in areas of medical research traditionally undertaken overseas.”  Indeed, apart from software development, engineering, agriculture and energy, there has been an increase in undertaking clinical trials in Australia due to our world class laboratories and scientific facilities, and the regulatory framework supporting them.

What does David enjoy most about his role? “It’s rewarding to identify solutions that support business expansion. I also love the variety of working with international clients and exposing our team to global matters. As accountants, we’re deeply invested in our clients’ success, and taking on the role of resident director adds an extra, personal dimension to that commitment.”

New Whitepaper Release: How ESG is Shaping Business Sectors by Alexandra Pasareanu

05.11.2024

We are pleased to announce the release of a comprehensive whitepaper by Alexandra Pasareanu, Director from ECOVIS Wingrave Yeats, London.

Titled “How is ESG Impacting Your Business Sector?”, this whitepaper provides an in-depth analysis of the role Environmental, Social, and Governance (ESG) principles play across multiple sectors, including Financial Services, Retail, Technology, and Real Estate, among others.

In this timely and insightful paper, Alexandra explores the latest challenges and opportunities ESG principles bring to businesses worldwide, addressing the regulatory demands, reporting standards, and the shift towards sustainable practices that impact every aspect of modern business operations. With a focus on helping companies navigate this evolving landscape, the whitepaper offers practical guidance on integrating ESG strategies for long-term resilience and competitive advantage.

Visit our Sustainability Matters and ESG Services page to read the full whitepaper and discover how ECOVIS can support your journey towards a sustainable and socially responsible future.

ESG related FAQs by EU, Nature Restoration Law and BAM Reporting

04.11.2024

FAQs on the EU Corporate Sustainability Reporting Regulation

The European Commission has published FAQs to help companies better understand and implement the EU’s corporate sustainability reporting rules. The document addresses common concerns such as scope, application dates and possible exemptions, with the aim of reducing the administrative burden on companies. It also clarifies situations where companies can use estimates instead of collecting detailed value chain data from suppliers.

Recommendation:

Companies should review these FAQs in order to simplify compliance with the EU’s reporting requirements, with a particular focus on clarifications regarding exemptions and data estimation to minimize operational burden

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EU Adopts Nature Restoration Law (Regulation 2024/1991)

The EU has adopted Regulation (EU) 2024/1991, known as the *Nature Restoration Law*, to restore ecosystems across the Union. This regulation, which came into force on June 24, 2024, sets ambitious targets to restore at least 20% of land and sea areas by 2030, with full restoration of all degraded ecosystems by 2050. The legislation supports the recovery of biodiversity and contributes to climate change mitigation and adaptation. Member states are required to develop national restoration plans to achieve these goals and ensure the long-term and resilient recovery of ecosystems.

Next steps and recommendations:

Member states must begin developing national restoration plans that focus on specific actions to achieve the 2030 and 2050 targets. Businesses should align their environmental practices with the new restoration targets, while policymakers and stakeholders must ensure that the biodiversity and climate change commitments set out in the European Green Deal are met.

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BAM Reporting: New updates and FAQs available

The European Commission has updated its FAQs to help importers and manufacturers comply with the Carbon Border Adjustment Mechanism (CBAM). From July 1, 2024, importers will be required to report actual emissions for all CBAM goods imported into the EU. The updated FAQs provide guidance on how to deal with situations where suppliers don’t provide the required emissions data, including possible alternative reporting methods and steps to ensure compliance. In addition, the FAQs address ways to strengthen collaboration within the supply chain to promote transparency and accuracy in emissions reporting.

Recommendation:

Importers should review the updated FAQs to ensure compliance and work closely with suppliers to meet CBAM reporting requirements. With the next reporting deadline on October 31, timely action is critical.

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ISSA 5000: New global standard for sustainability assurance approved

The International Auditing and Assurance Standards Board (IAASB) has approved the International Standard on Sustainability Assurance 5000 (ISSA 5000), the first global standard for the assurance of sustainability reports. The new standard, which is expected to be finalized and published by the end of 2024, will help auditors ensure the accuracy of companies’ sustainability claims, including key areas such as greenhouse gas emissions and human rights. ISSA 5000 aligns with the International Ethics Standards Board for Accountants’ (IESBA) sustainability-related standards, establishing a global baseline for sustainability assurance.

Recommendation:

Auditors should familiarize themselves with ISSA 5000 and related IESBA standards to ensure accurate, ethical, and globally aligned sustainability assurance, especially as these requirements become mandatory in many regions.

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CEAOB issues new guidelines on limited assurance for sustainability reporting

The Committee of European Auditing Oversight Bodies (CEAOB) has issued interim guidance on limited assurance for sustainability reporting. These guidelines will help auditors and assurance providers navigate the requirements of the Corporate Sustainability Reporting Directive (CSRD) until formal standards are adopted in 2026. The guidelines cover key issues such as ethics, fraud risk, material misstatement and forward-looking information. They aim to ensure consistent practices across EU member states and improve the reliability of sustainability reports, particularly those prepared under the European Sustainability Reporting Standards (ESRS).

Recommendation:

Auditors should familiarize themselves with the CEAOB guidelines to ensure proper compliance with the limited assurance requirements of the CSRD. By focusing on ethical standards and targeted risk assessments, they can enhance the quality and reliability of sustainability reports during this transitional period.

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