NAVIGATION

MEMBERS' HANDBOOK

Handbook Update No. 324 relates to the publication of HKSSA 5000, which is the equivalent of ISSA 5000 issued by the International Auditing and Assurance Standards Board (IAASB)

HKSSA 5000 is an overarching standard that outlines requirements and application material for all elements of a sustainability assurance engagement. It provides a robust framework that supports the consistent performance of quality sustainability assurance engagements, aiming to enhance the reliability and transparency of disclosed information. The key impacts document provides an overview of the standard and addresses major local stakeholders’ comments gathered during the consultation of ISSA 5000.

Handbook Update No. 325 relates to the following publications in Volume II of Members’ Handbook:

The names ‘Hong Kong Financial Reporting Standards’ and ‘Hong Kong Financial Reporting Standard for Private Entities’ in the following publications have been updated to ‘HKFRS Accounting Standards’ and ‘HKFRS for Private Entities Accounting Standard’ respectively, following the issuance of the HKFRS Sustainability Disclosure Standards in December 2024:

Preface to HKFRS Accounting Standards (formerly known as Preface to Hong Kong Financial Reporting Standards);
HKFRS for Private Entities Accounting Standard (formerly known as Hong Kong Financial Reporting Standard for Private Entities); and
Small and Medium-sized Entity Financial Reporting Framework and Financial Reporting Standard.

The new names can be applied immediately following the issuance of this Update.

Handbook Update No. 326 revises various auditing and assurance standards in Volume III to:

Require mandatory disclosures of the auditor’s name and practising certificate number in the auditor’s report under HKSA 700 (Revised);
Update the illustrative documents as a result of Handbook Update No. 325 and;
Align with the 2023–2024 IAASB Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements and for other housekeeping changes

Institute submission

The Institute has submitted its comment letter on the International Accounting Standards Board (IASB) Exposure Draft Provisions – Targeted Improvements.

Reminder - Institute live webinar on Navigating Hong Kong Risk-based Capital (HKRBC): Considerations for upcoming annual submission

The new HKRBC regime for Hong Kong’s insurance industry took effect on 1 July 2024. Authorised insurers are required to submit an auditor’s report on specified forms included in their annual returns to the Insurance Authority. The first submission, covering the reporting period ending 31 December 2024, is due by 30 June 2025. To assist insurers, the Institute is hosting a live webinar on 25 April, focusing on the annual submission. Expert speakers will share practical insights and compliance recommendations, and address questions in a dedicated Q&A session. Don’t miss this opportunity to gain clarity on HKRBC requirements and ensure a smooth submission process.

HKICPA Technical Bulletin: Determining the appropriateness of the auditor’s reporting framework

The Institute’s recently issued technical bulletin AATB 7 aims to help practitioners determine an appropriate reporting framework for engagements other than audits or reviews of financial statements. The guidance also assist intended users of the practitioner’s report in understanding the purposes of different types of auditor reporting, thereby addressing specific needs, such as regulatory obligations.

Understanding assurance needs

This resource from CPA Canada outlines several steps for decision makers such as third-party lenders, funders, regulators, and other organizations to consider when determining the type of engagement that best meets the needs of intended users. Each step includes relevant questions and example responses.

HKICPA e-learning series: Towards an effective and efficient audit

Sign up for the Institute’s e-learning sessions, which cover the following selected key topics in auditing. Speakers will highlight relevant requirements, discuss pitfalls identified in regulatory inspections, and offer practical tips to help you avoid them:

HKICPA ethics resources

Access resources and publications at the Institute’s Resource Centre to the Code where you can stay informed about the latest ethics pronouncements. Watch this video to learn how to easily access these valuable resources.

Webinar series - Perspectives on sustainability disclosure

In the upcoming Episode 8 of the webinar series, "The future of integrated reporting and integrated thinking", experts from the International Sustainability Standards Board (ISSB) and industry leaders will discuss how an integrated approach to corporate reporting can enhance the quality of connected information between sustainability disclosures and financial statements. Click here to register or view past episodes.

ORO Circular No.1/2025

The Official Receiver’s Office (ORO) has issued the above-captioned circular for the attention of liquidators, which supersedes Circular No. 3/2017.

The main change is that, when liquidators submit their bill of costs to the ORO, along with a resolution passed by the committee of inspection (COI) confirming that the COI has been provided with the details prescribed in the circular, those details should now include “dates and names of respective grades of staff and the hours spent on the main activities of work performed” during the relevant period, rather than on a weekly basis as previously specified. This relaxation follows discussions between the ORO and the Institute’s Restructuring and Insolvency Faculty Executive Committee.

Appointment of New OR

The Government has announced that Miss Lillian Chow, Deputy Principal Solicitor, will take up the post of Official Receiver (OR) on 31 March, to succeed Ms. Phyllis McKenna, who will proceed on pre-retirement leave on the same day.

INSOL Hong Kong 2025

INSOL International, the global association for restructuring, insolvency bankruptcy professionals, held its major international conference at the Rosewood Hong Kong on 17-19 March, marking the first time the event has been held in the city since 2014. The conference, which was co-chaired by member of the Institute’s Restructuring and Insolvency Faculty Executive Committee, reached its capacity of 700 participants well ahead of time. In addition to the main conference, a number of related ancillary event were held at the same location, including a member associations’ meetings attended by Institute representatives, the seventh INSOL/ World Bank Group Legislative & Regulatory Colloquium, financiers and judicial roundtable meetings, and an offshore meeting.

Announcements by the Inland Revenue Department (IRD)

Members may wish to be aware of the following matters:

Announcements by the government

Members may wish to be aware of the following matters:

Anti-money laundering (AML) notices and news

AML notices:

The List of terrorists and terrorist associates designated by the United Nations Security Council, published pursuant to the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575) was gazetted on 13 March. See the press release.
For the current lists of terrorists, terrorist associates and relevant persons/ entities under United Nations sanctions, members should refer regularly to the Institute's AML webpage. Other useful documents and guidance can also be found on the same page.

Publications from other organizations:

Less than a third of companies follow AI adoption best practices from CFO.com
How to spend less time on email marketing – and still make money from Entrepreneur.com
Mindset, accountability, change: How to empower the finance team from Financial Management
Breaking down the reasons for a decline in economic sentiment from Journal of Accountancy
The state of AI: How organizations are reviewing to capture value by McKinsey & Company

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