Your quarterly news for CFOs and members working in business (24 April 2024)

HKEX publishes conclusions on climate disclosure requirements

HKEX has recently published conclusions to its consultation on the enhancement of climate-related disclosures under its environmental, social and governance (ESG) framework (Consultation Conclusions). In response to the consultation, HKEX will adopt its consultation proposals with modifications to reflect IFRS S2 Climate-related Disclosures (IFRS S2) more closely, as set out in the Consultation Conclusions (New Climate Requirements).

The key features of the New Climate Requirements are as follows:

The New Climate Requirements are developed based on IFRS S2. Implementation reliefs including proportionality and scaling-in measures are introduced to address concerns over the reporting challenges that some issuers may face.
The amended Listing Rules will come into effect on 1 January 2025. A phased approach is adopted for the implementation of the New Climate Requirements.

Read the Consultation Conclusions and Implementation Guidance for further details.

Becoming a member of specialist interest group

The Institute’s specialist interest groups (IGs) offer a platform for members to connect with peers in a similar arena and participate in relevant events. The groups provide extensive updates and engaging activities. Membership to the IGs is absolutely free. Explore our diverse selection of groups and become a member today.

News and updates

HKMA introduces 9 measures to support SMEs

The Hong Kong Monetary Authority (HKMA), together with the Banking Sector SME Lending Coordination Mechanism, announced on 28 March a series of measures to assist small and medium-sized enterprises (SMEs) in obtaining financing from banks and to support their continuous development.

Nine measures will be launched to assist SMEs in navigating a complex and ever-changing operating environment and to increase their bargaining power relative to banks:

Never demand early repayments from mortgage customers who repay on schedule.
Give customers a transition period of at least 6 months for credit limit adjustments.
Expedite the handling of applications for the 80% and 90% Guarantee Products.
Apply the principles under the Pre-approved Principal Payment Holiday Scheme to support customers facing difficulties.
Offer credit products that better serve SMEs’ needs and other support services.
Actively consider lowering interest charges and fees.
Set up a one-stop platform for providing information on banking services for SMEs.
Provide convenience to customers to switch lending banks.
Regular meetings with business sectors to understand the needs of SMEs.

Sustainability in transactions

ACCA has published a report jointly with CA ANZ that aims to support chief financial officers and their teams in identifying appropriate sustainability-related considerations during investment and divestment workflows.

The report examines why sustainability-related issues matter in the transaction workflow, examining the business context and the different dimensions of sustainability. It looks at the perspective of the acquirer and the seller, and offers conclusions and top tips, including six key observations for sustainability in due diligence.

Three key messages from the report include:

Sustainability-related opportunities and risks cannot be ignored in a transaction: they now form a fundamental part of the strategic intent of the transaction and the valuation of an entity.
The assessment of these risks and opportunities must be comprehensively considered as part of the due diligence process, both as a specific workflow and as an integral part of other forms of due diligence.
Organizations need to ensure that they have an appropriate level of expertise across the transaction workflow and in relation to the target’s operations, assets and liabilities.

Upcoming events and activities

ESG workshop on carbon accounting

One more week to go! Join the workshop on 7 May to understand more about carbon accounting, on how to calculate it, and the reasons your business should care about it. Receive up to 80% reimbursement under the Pilot Green and Sustainable Finance Capacity Building Support Scheme (the Scheme)!

Delegation to Guangzhou

To support members in exploring opportunities in the GBA, the Institute’s Small and Medium Practices Committee, Greater Bay Area Committee and Guangzhou Institute of CPAs have organized a one-day visit to Guangzhou on 27 May to foster exchange and co-operation among the profession across markets, as well as enhance members’ knowledge on the latest developments in Guangzhou.

ESG workshop: TCFD scenario analysis for climate risks and opportunities

Don’t miss this workshop on 29 May to delve into the Strategy pillar of the TCFD and examine the importance of scenario analysis. Eligible for reimbursement under the Scheme, learn how to identify and choose climate scenarios, models, and time horizons.

PAIB Live AMA 你問我答

The series “PAIB Live AMA” offers a platform for engaging discussions and lively exchanges among PAIBs. Archived webinars (Episode 1, Episode 2 and Episode 3) are available now. Unwind, chat, and learn from seasoned speakers in a relaxed and casual format.

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

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

5 steps to transition to a subscription-based business model from Financial Management
6 ways to prepare for and reduce employee turnover from Entrepreneur.com
Educating accountants for a sustainable future by IFAC
Navigating the governance of cybersecurity and cyber resilience from CFO.com

Tax articles

Hong Kong removed from EU's watchlist on tax co-operation by EY
Hong Kong-Bahrain tax treaty signed by Deloitte
The Hong Kong SAR and Croatia entered into a double tax agreement by KPMG
IRD's latest approach to large business tax administration by PwC

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