News

Issue no. 496 (23 May 2014)

Dear members/member practices,

Highlights

	Responses to MoF's exposure draft
	The Ministry of Finance has recently issued an exposure draft of the provisional regulations on CPA practices carrying out cross-border audit services. Two key proposals are:

	1.	Non-PRC CPAs are not allowed to carry out audits for overseas listed enterprises with operating entities in China through provisional license arrangements.

	2.	Non-PRC CPAs should enter into cooperating arrangements with top 100 PRC CPA practices and/or those qualified for performing audits for listed entities in China.
	In view of the significant implications of the ED, we have alerted CPA firms that are likely to be affected, the Hong Kong government and relevant regulatory bodies. The Institute's Chief Executive and the LegCo representative have given an interview to the Commercial Radio, while the President has made comments for the SCMP about the impact on the accounting profession, regulatory scene and Hong Kong financial market. Click to see the summary of our submission (English / Chinese) and recent media coverage.

IESBA outreach to Hong Kong

The International Ethics Standards Board for Accountants held the first of its three global roundtables in Hong Kong on 20 May to follow up on its August 2012 exposure draft about responding to non-compliance with laws and regulations. At the roundtable, IESBA explained subsequent developments and current thinking and the Institute representatives shared their views and concerns. Click here for the Institute's earlier submission.

We also arranged various meetings to enable Hong Kong stakeholders, including regulators, investors, PAIBs and SMPs to exchange views with the IESBA and a visit to ICAC for the delegation to learn more about anti-corruption work in Hong Kong.

New Hong Kong Companies Ordinance

Co-organizing with the Hong Kong Institute of Directors, the seminar on 23 June will discuss the implications on financial reporting and director duties under the new Companies Ordinance. +


	Professional development and events

Human trafficking and compliance

The Forensics Interest Group seminar on 28 May will talk about human trafficking, focusing on legal and regulatory landscape and how this is likely to become a major compliance area for companies doing business in Asia. +

Regulatory investigations and respond to requests for information

Learn more about the investigation powers of regulators and how to deal with requests for provision of documents, written answers and interviews at the Corporate Finance Interest Group seminar on 23 June. +

Internal control workshop

Come join the workshop on 17 June to learn more about practical aspect on internal control. +


	China-Hong Kong advance pricing arrangements
	Sign up for the seminar on 16 June to learn more about the latest development of double tax relief alternatives and managing transfer pricing issues in China and Hong Kong. +

How auditors assess a valuation

Enrol in the workshop on 11 July to learn more about the importance of valuation and fair value measurements during an audit. +

Reminder: shareholder communications

The PAIB forum on 29 May, organized in conjunction with the Institute's new corporate governance disclosure guide, will focus on effective shareholder communications from the perspectives of management, investor relation professionals and investors (buy side).


	to CPD learning centre and events calendar for more activities.

Post-implementation review of IFRS 3

The Institute hosted a roundtable discussion on 12 May, where IASB Board Member Chungwoo Suh and staff exchanged ideas with Hong Kong preparers and auditors on its post-implementation review of IFRS 3 Business Combinations. Click here for more.


	Tech updates

Consultation on open-ended fund companies

FSTB has released a consultation to introduce a new open-ended fund company structure to expand Hong Kong’s legal structure for investment fund vehicles. It is seeking public views by 19 June. Read the FSTB article to learn more.

Latest IFRS developments

PwC has published news to discuss the latest developments on IFRS. +

Reminder: Guidance on keeping of separate client monies

Click here for the Hong Kong Confederation of Insurance Brokers' guidance note on keeping of separate client monies.

Lifestyle

Reminder
	Come to the Merry Monday on 9 June to learn more about the Institute's wide range of recreational activities including athletics, badminton, dance, golf and photography.


	Sign up by 26 May to become Institute's football team members and represent us in the 11-a-side league for 2014-15. +

	Limited places are still available for the classes of Jive, Foxtrot and Jazz Funk in late May and Jazz in early June.


	Last call to enrol in the inaugural snooker league starting on 22 June. Your scores may be used as our reference for selecting members to represent the Institute at the RSCP snooker tournament.


	Don’t miss the badminton technique training course starting on 4 June.


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