NAVIGATION

MEMBERS' HANDBOOK

Handbook Update No. 309 updates various pronouncements in Volume III of the Members’ Handbook for conforming amendments as a result of HKSA 600 (Revised). These amendments became effective at the same time as HKSA 600 (Revised) for audits of financial statements for periods beginning on or after 15 December 2023.

Handbook Update No. 310 updates the Institute’s Code of Ethics for Professional Accountants (Code) in Volume I of the Members’ Handbook to incorporate:

Housekeeping revision to the Preface of the Code; and
Technology-related Revisions to the Code. Revisions to Parts 1 to 3 will be effective as of 15 December 2024. Revisions to Part 4A will be effective for audits and reviews of financial statements for periods beginning on or after 15 December 2024. The conforming and consequential amendments to Part 4B in relation to assurance engagements with respect to underlying subject matters covering periods of time will be effective for periods beginning on or after 15 December 2024; otherwise, these amendments will be effective as of 15 December 2024

Call for papers for the 2025 IASB Research Forum

The International Accounting Standards Board (IASB) is issuing a call for papers for the 2025 IASB Research Forum. Academics are invited to submit papers on the following topics by 31 March 2025.

Statement of cash flows and related matters;
Intangible assets;
Any other emerging issues relevant to the IASB;
Costs and benefits of IFRS Accounting Standards; and
Impact of changes in the financial reporting environment.

Reporting on solicitors’ account

Practices might be engaged to issue an Accountant’s Report on a firm of solicitors. Access the following resources to improve your knowledge of the reporting requirements, common shortcomings and how to prevent them in practice:

AFRC publications

The Accounting and Financial Reporting Council (AFRC) has published several documents that outline important issues in auditing and emphasize the aspects that require careful consideration when performing audit engagements:

HKICPA resource centre

Access resources and publications at the Institute’s Auditing and Assurance Resource Centre which help you keep updated with the auditing and assurance pronouncements.

IESBA Annual Report

The International Ethics Standards Board for Accountants (IESBA) has published its 2023 Annual Report, Respecting the Past, Planning for the Future. It highlights the achievements of the IESBA in 2023, including:

the approval and subsequent launches of the Exposure Draft on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and ethics standards for sustainability reporting;
the final Ethics Standards for Tax Planning and Related Services;
the approval of an Exposure Draft on Using the Work of an External Expert; and
the IESBA's Strategy and Work Plan for 2024-2027.

These initiatives aimed at reinforcing the IESBA’s International Code of Ethics for Professional Accountants (including International Independence Standards).

HKICPA resource centre

Access resources and publications at the Institute’s Resource Centre to the Code which will keep you updated on the latest ethics pronouncements.

E-learning: Embarking on the journey of IFRS Sustainability Disclosure Standards (Part 1)

In May 2024, the Institute hosted a live webinar that focused on the essentials of IFRS Sustainability Disclosure Standards (IFRS SDS). The webinar provided an in-depth discussion of the key concepts, principles and core requirements of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures with illustrative examples. For those who were unable to attend the live session, the webinar has been archived and is now available for members to access.

Webinar series - Perspectives on sustainability disclosure

The IFRS Foundation is launching a new series of monthly webinars to help preparers and other capital market participants worldwide ease their transition to using IFRS SDS. This webinar series complements the other resources published by the IFRS Foundation. Click here to watch Episode 1 and register for the upcoming Episode 2 which will be available on 11 July.

In Episode 1 The business case for early jurisdictional adoption, the speakers discussed the benefits of early adoption of IFRS S1 and IFRS S2 for investors, companies and capital markets.
In Episode 2 How the IFRS Foundation can get you started with the ISSB Standards, the speakers will explore how the IFRS Foundation is supporting adoption through its capacity-building programme, the ISSB’s work with different stakeholder groups and types of education and support materials developed by the ISSB.

HKEX to implement Severe Weather Trading in Securities and Derivatives Markets from 23 September

On 18 June, Hong Kong Exchanges and Clearing Limited (HKEX) announced the finalization of the operational model and arrangements to allow Hong Kong's securities and derivatives markets to remain open during severe weather conditions. Severe Weather Trading is therefore planned to be implemented from 23 September, subject to regulatory approval.

The Institute issued a submission in response to the relevant HKEX Consultation Paper, which, in principal, supported the HKEX’s proposals on the basis that a change to the existing severe weather arrangements should help to enhance Hong Kong’s competitiveness and the attractiveness of Hong Kong’s markets to investors.

Please refer to the consultation conclusions and the press release for details.

Exchange issues Consultation Paper on Corporate Governance Code Enhancements

On 14 June, the Stock Exchange of Hong Kong Limited (Exchange) issued a consultation seeking market feedback on its proposed enhancements to the Corporate Governance Code and related Listing Rules. The key proposals include:

Board effectiveness improvements
Strengthening board independence
Promoting diversity
Enhancing risk management and internal controls
Better capital management

The deadline for responding to the consultation paper is 16 August. Please refer to the press release for details. If you wish to pass on any views to the Institute, please send them to apd@hkicpa.org.hk by 15 July.

Revision of Panel A Rules

The Official Receiver’s Office has further revised the Panel A Rules introducing provisions on safeguarding national security. The revised Panel A Rules came into effect on 17 June 2024.

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 United Nations Sanctions (Somalia) Regulation 2019 (Amendment) Regulation 2024 was gazetted on 14 June.
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.

Other AML news:

The ICAC recently charged an owner of an asset management company for allegedly laundering crime proceeds of about HK$50 million through a number of companies and individuals. Please refer to the related press release.

Publications from other organizations:

4 steps you need to follow to make it through any crisis with your company intact from Entrepreneur.com
Working for a new boss: how to navigate the change from Financial Management
6 takeaways from the CFO leadership council’s spring conference from CFO.com
Finding qualified staff tops ranking of CPA firm top issues from Journal of Accountancy

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