NAVIGATION

MEMBERS' HANDBOOK

Handbook Update No. 318 relates to revisions to the Institute’s Code of Ethics for Professional Accountants (Code) incorporating the following:

Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code which will be effective for audits of financial statements for periods beginning on or after 15 December 2024.
Revisions to the Code Addressing Tax Planning and Related Services (Tax Planning Revisions) which will be effective for tax planning activities/services beginning after 30 June 2025. Early adoption is permitted. Section 600 of Chapter C has also been revised for conforming and consequential amendments as a result of the Tax Planning Revisions.
Other housekeeping editorial changes to align with the 2024 Handbook of International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

Publication of HKFRS S1 and HKFRS S2 and updates to Members’ handbook

Following the HKSAR Government’s publication of the Roadmap on Sustainability Disclosure in Hong Kong last week, the Institute published the inaugural HKFRS Sustainability Disclosure Standards – HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures on a full alignment basis with the IFRS Sustainability Disclosure Standards on 12 December. For details, please access the one-page infographic and Handbook Update No. 319 related to the issuance of HKFRS S1 and HKFRS S2.

Invitation to comment

The Institute is seeking comments on the following tentative agenda decisions published by the IFRS Interpretations Committee by 2 January 2025:

The Institute’s Financial Reporting Standards Committee meeting minutes

Minutes of the October 2024 meeting are now available.

IFRS 19 disclosure tracker

The IFRS Foundation has released the IFRS 19 disclosure tracker, which lists the disclosure requirements in IFRS 19 Subsidiaries without Public Accountability: Disclosures and maps them to their equivalents in other IFRS Accounting Standards. The tracker, which requires registration to access, will be updated regularly to reflect changes in both IFRS 19 and other IFRS Accounting Standards.

New webcast series—Connectivity between the financial statements and sustainability-related financial disclosures

The International Accounting Standards Board (IASB) and the International Sustainability Standards Board (ISSB) recognize the importance of connectivity between their respective requirements in enabling the provision of high-quality financial information to capital markets.

In this webcast series, technical staff from IASB and ISSB discuss how IFRS Accounting Standards and IFRS Sustainability Disclosure Standards complement each other. Through practical examples, they illustrate how applying the Standards together results in complementary and connected reported information. The full episodes of this series are now available:

IFRS Standards—Complementary and connected information
Example—Climate-related risks and impairment of non-financial assets
Example—Climate-related opportunities and changes in product mix
Example—Climate-related commitments

In addition, a new dedicated webpage on connectivity has been launched to provide resources that focus on connectivity.

Adapting to a changing world—Keynote address by the IASB Chair at the EFRAG Conference

Andreas Barckow, Chair of the IASB, delivered a keynote address at the European Financial Reporting Advisory Group (EFRAG) Conference on 10 December. He explained how IFRS Accounting Standards foster transparency and trust in financial markets while connecting global markets through a common financial language. He emphasized that the IASB’s effectiveness relies on balancing transparency and trust with a deep understanding of diverse economic realities and priorities among jurisdictions. He concluded that while traditional financial reporting remains the foundation for analysing a company’s resilience and capacity for growth, it can be complemented by other forms of reporting to provide a broader perspective.

IASB completes technical work on Management Commentary

The IASB has completed its technical decision-making on the revised IFRS Practice Statement 1 Management Commentary. The IASB is expected to publish the updated Practice Statement in the first half of 2025.

This revision addresses the need for better information related to a company’s ability to create value and generate cash flows, including in the long term. In finalizing the project, the IASB made targeted improvements to its proposals to support alignment with IFRS Sustainability Disclosure Standards and improve connectivity in companies’ reports. The IASB intends that the updated statement will support the improvement and global alignment of management commentary and similar reporting for regulators and companies.

IFRS Interpretations Committee November 2024 Update and Q4 2024 podcast

The IFRS Interpretations Committee Update provides a summary of discussions at its November meeting. A podcast of the Committee’s Chair Bruce Mackenzie discussing the decisions made at the meeting is also available.

One in three audit committee chairs "concerned" about detection of financial distress

This article by the Institute of Chartered Accountants in England and Wales (ICAEW) highlights a survey conducted by a new research and policy institute involving UK equity investors, FTSE 350 finance directors and audit committee chairs. The findings reveal that while most audit committee chairs are satisfied with audit quality, around one-third concerns about auditors’ ability to identify going concern issues and signs of financial distress. The survey also indicates the following:

Increased transparency between auditors and stakeholders would have the greatest impact on audit value.
Clearer reporting on key judgements and risks, and real-time reporting of issues are primary drivers for increasing audit value.
Assurance is more important than financial and non-financial business model risks to enhance audit value for users of corporate information, and society at large.

If you are interested in accessing the ICAEW’s online audit and assurance resources, please contact the Member Engagement Department at me@hkicpa.org.hk for free enrolment on a first-come, first-served basis. Spots are limited. Please note that your name and email address will be shared with the ICAEW for communication purposes.

The Institute’s Auditing and Assurance Standards Committee meeting minutes

Minutes of the 421^st meeting are now available.

Sustainability standards approval at IESBA’s December meeting

The IESBA took a major leap forward at its December 2024 meeting by approving two sets of standards aimed at enhancing public trust in sustainability reporting and assurance:

The International Ethics Standards for Sustainability Assurance (IESSA) and related revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the IESBA Code), setting a global benchmark for ethical behavior and independence in sustainability reporting and assurance.
Revisions to the IESBA Code on Using the Work of an External Expert, establishing an ethical framework for evaluating the competence, capabilities and objectivity of external experts used by professional accountants and sustainability assurance practitioners.

HKICPA Ethics Webinar: Exploring the fundamental principles and independence requirements of the Code

Join this insightful webinar on 14 January 2025 to delve into the fundamental principles and independence requirements in the Code. Our expert speaker will elaborate on their significance and practical application, providing insights on navigating ethical situations through case studies and illustrative examples.

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. Watch this video showcasing on how to easily access these valuable resources.

Highlights from the Beijing International Sustainability Conference 2024—Path to Global Baseline

The IFRS Foundation’s Beijing Office hosted the Beijing International Sustainability Conference 2024 on 21 November 2024. The conference, themed "Path to Global Baseline", highlighted the latest developments from the ISSB. It attracted 240 in-person attendees and nearly 6 million online views. Access the conference archive here.

Webcasts: Accelerating Climate and Sustainability-related Disclosures: A Global Perspective

The International Federation of Accountants (IFAC), the IFRS Foundation, and the International Organization of Securities Commissions (IOSCO) jointly hosted the event Accelerating Climate and Sustainability-related Disclosures: A Global Perspective during the Climate Week New York City 2024. Leaders from IFAC, ISSB and IOSCO joined the event to share their perspectives on global adoption and implementation of the ISSB Standards. To support the ongoing discussion and action, the IFAC has made the recordings available to the public.

Application for Appointment of Provisional Liquidators under Section 193 of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap.32)

The Official Receiver’s Office (ORO) has issued a letter for the attention of insolvency practitioners (IPs), reminding IPs to observe and follow the ORO’s Circular No.4/2017. For any questions related to this letter, please contact Mr. Patrick Chan of the ORO at 2867 2515.

Announcements by the Inland Revenue Department

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 4 December.
The List of individuals, groups, undertakings and entities published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) was updated on 4 December. Please refer to 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.

Other AML news:

Publications from other organizations:

6 generative AI lessons every CFO should take into 2025 from CFO.com
5 powerful ways to streamline your work process with AI from Entrepreneur.com
4 actions for CFOs to stay ahead on ESG from Financial Management
10 tips to help avoid wire fraud scams from Journal of Accountancy
How the best CEOs build lasting stakeholder relationships by McKinsey & Company

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