Your quarterly news for CFOs and members working in business (29 January 2024)

Addressing the current state of accounting talent supply

The Institute announced the findings of its survey on the current state of the accounting talent supply in Hong Kong. Members were about the current state of talent supply within the accounting profession in Hong Kong, and the survey found:

61% of the respondents ranked the extent of talent shortage impact at 7 or above (where 1 represents no impact and 10 indicates severe adverse effects), with 25% of them indicating a rating of 9 or above;
Approximately one third (32%) of the respondents stated that their companies or organizations currently have a vacancy rate of over 10% for accounting and finance-related positions;
Among PAIPs, 10% of them have a vacancy rate of over 50%, highlighting the magnitude of the talent shortage challenge.

Based on the findings of the survey, the Institute proposed several recommendations, including:

Inclusion of the accounting profession in the Talent List;
Expanding the scope of the Immigration Arrangements for Non-local Graduates (IANG) to cover the Institute’s accredited programmes in the Greater Bay Area (GBA); and
Subsidizing the study of the Institute’s Qualification Programme

Read the full report now.

HKEX review results of Issuers’ Annual Reports

On 26 January, Hong Kong Exchanges and Clearing (HKEX) published a report on the findings and recommendations from its annual review of issuers’ annual reports for the 2022 financial year end. HKEX was generally satisfied with its findings and recommended the following:

Financial reporting and related controls – Issuers’ management should establish a policy to identify emerging risks, develop risk-mitigating controls, and review control effectiveness on a continuous basis under the oversight of audit committees to facilitate timely and accurate financial reporting. An audit should be properly planned, with audit fees and detailed audit plans agreed upon with auditors as early as practicable. Issuers’ management and audit committees should have sufficient and continuous oversight throughout the audit process.
Material lending transactions – Money lenders should enhance their disclosure with regard to customer profile, concentration risks and internal controls over the lending businesses, whilst non-money lenders should be transparent about the reasons for their lending. In addition, issuers should be mindful of the Rule requirements on lending transactions (being a form of “financial assistance” under the Rules) and ensure compliance.
Financial statement disclosure under accounting standards – When performing the expected credit losses assessment, fair value measurement and impairment testing, issuers’ directors must exercise their own judgment to assess the reasonableness of the assumptions and inputs and should not overly rely on valuers. Issuers should continuously review the clarity and transparency of the financial statement disclosure under accounting standards.

Members who are preparers of financial statements in particular for listed entities are encouraged to read the report and follow HKEX guidance to improve annual report disclosure to enhance transparency to stakeholders.

Becoming a member of specialist interest groups

The Institute’s specialist interest groups (IGs) offer a platform for members to connect with peers in a similar arena and organize further events relevant to your section. There are a lot of updates and engaging activities to get you actively involved. Membership to the IGs is absolutely free. Explore our wide variety of groups and join today.

News and updates

IFAC's article “Navigating Transformation: The Impactful Leadership of Accountants”

Businesses around the globe are navigating the complexities of digital transformations, sustainability and climate transitions and professional accountants are essential in turning these challenges into opportunities to thrive.

The International Federation of Accountants (IFAC) published its article “Navigating Transformation: The Impactful Leadership of Accountants”, which discusses how professional accountants are transforming organizations and explore all of the helpful resources IFAC’s PAIB team has developed this year.

Steering Group announces key initiatives to support Hong Kong in capitalizing sustainable finance opportunities

The Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) announced its three key initiatives to capture financing and investment opportunities from the Asia-Pacific Region’s low carbon transition, including,

Adopting International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards locally as appropriate.
Leveraging technology to support sustainability reporting and data analysis.
Supporting the development of transition finance to consolidate Hong Kong’s role as a leading sustainable finance hub.

Visit the website for details on the initiatives of the Steering Group and its members.

Upcoming events and activities

Insights that stick! ESG webinar: EU Sustainability Reporting Standard

The webinar on 29 February will do a deep dive into the key aspects of the CSRD that stakeholders cannot ignore. The speaker will provide a concise overview of the CSRD and specifically examine the transformative impact of CSRD, as well as clarify how companies can prepare effectively. Join to and leave with actionable takeaways on how to navigate this regulatory framework.

ESG workshop: TCFD Scenario Analysis for Climate Risks and Opportunities (re-run)

Don’t miss this workshop on 13 March. The speakers will walk you through the Strategy pillar of the TCFD while providing an introduction to the TCFD and ISSB. It will examine what scenario analysis is and its importance under the Strategy pillar of TCFD, as well as how to identify and choose climate scenarios, models, and time horizons. Financial quantification of a company’s risks and opportunities, as well as practical insights into performing scenario analysis will also be shared.

PAIB Live AMA 你問我答

The series “PAIB Live AMA” offers a platform for engaging discussions and lively exchanges among PAIBs. Register now for the upcoming session (Episode 3) on 21 February or catch up on archived webinars (Episode 1 and Episode 2). Unwind, chat, and learn from seasoned speakers in a relaxed and casual conversational format.

Don’t miss the following on demand online courses as well:

PAIB Conference 2022 – CPA Here and Now: Sustain, Transform & Deploy

(archived session)

GPSSG e-Seminar: Leading your organization to a sustainable future (archived webinar)

ICTIG e-Seminar: Generative AI is here, what’s now and what’s next? (archived webinar)

Joint FSIG-PICIG e-Seminar: The impact of the Metaverse on real estate investment and development (archived webinar)

GPSSG e-Seminar: Value for money audit – Enhancing public sector performance and accountability (archived webinar)

GPSSG e-Seminar: Transforming Higher Education Certificate Verification: A closer look at the ACVP Blockchain Project (archived webinar)

If you have suggestions on specific topics or speakers for future PAIB events, please let us know at paib@hkicpa.org.hk.

Features and articles

The following articles and publications may be of your interest:

Business articles

Cloud adoption paves the way for innovation, but concerns persist by AICPA & CIMA
ESG becomes top priority for finance leaders from Financial Management
CFO leadership: Collective work ethic, learning environment drive growth from CFO.com
What accountants need to know about autonomous accounting from In the Black

Tax articles

How generative AI might help tax functions tackle challenges by EY
Hong Kong tax newsflash by Deloitte
An update on BEPS 2.0 Pillar 2 implementation in Hong Kong by KPMG
New Hong Kong Capital Investment Entrant Scheme – opportunities and challenges by PwC

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