Your fortnightly technical updates newsletter (19 August 2020)

Your fortnightly technical updates newsletter (19 August 2020)

Members' Handbook

Members’ handbook update no. 243 relates to the issuance of Classification of Liabilities as Current or Non-current (Amendments to HKAS 1 Presentation of Financial Statements). The amendments clarify how to classify debt and other liabilities as current or non-current, are effective for annual periods beginning on or after 1 January 2023, and apply retrospectively. Earlier application is permitted.

Standard setting

Live webinars on HKFRS

The Institute is holding live webinars on the following Hong Kong Financial Reporting Standards (HKFRS):

HKAS 36: How to apply and practical issues for impairment

7 September. Discussing some commonly-identified errors in the application of HKAS 36 Impairment of Assets illustrated by real-life cases, and sharing tips on impairment assessment. Key application and disclosure issues observed in practice will also be covered.

How to apply HKFRS 16 Leases and the recent amendment

21 September. Providing an overview of the key accounting requirements of HKFRS 16 Leases, including some practical issues in applying the standard using real-life scenarios. This webinar will also cover the recent amendment on rent concessions.

Definition of a business (Amendments to HKFRS 3 Business Combinations)

29 September. Covering the amendments to HKFRS 3 Business Combinations, including the revised definition of a business and the optional concentration test that help assess whether a company has acquired a group of assets, rather than a business. The speaker will also share examples and practical application issues.

IASB’s fourth webinar on Exposure Draft General Presentation and Disclosures

On 21 August, the fourth in a series of live webinars by the staff of the International Accounting Standards Board (IASB) on Exposure Draft ED/2019/7 General Presentation and Disclosures will take place. This webinar covers the detailed proposals for management performance measures. Members can also submit their comments on the exposure draft by 21 August.

IASB article on second comprehensive review of the IFRS for SMEs Standard

In this article, an IASB board member shares his views and provides additional context to the second comprehensive review of the IFRS for SMEs standard. The IASB published a Request for Information: Comprehensive Review of the IFRS for SMEs Standard to seek views on whether and how to align the standard with the full IFRSs in January 2020. Members can submit their comments on the Request for Information by 11 September.

Institute publishes a quick guide to auditing and COVID-19

The Institute has put together a summary of the key issues and considerations impacting the audit of financial statements as a result of COVID-19 and resources from global accounting bodies to help members navigate some of the challenges for the next reporting.

IAASB stakeholders’ surveys

The IAASB invites interested stakeholders to complete the following online surveys:

signing partner survey on circumstances where an individual, other than the engagement partner, is required to sign the audit report and the reasons why these occur by 21 August.
survey on experiences and feedback on the Auditor Reporting Standards by 23 October.

Invitation to comment

The Institute is seeking comments on:

Exposure Draft Code of Ethics for Professional Accountants – Chapter G Section 100 Professional Ethics Relevant to Anti-Money Laundering and Counter-Terrorist Financing Compliance for Accounting Professionals by 28 August.

Advocacy and practice development

Invitation to comment

The Stock Exchange of Hong Kong Limited is seeking comments on Consultation Paper Review of Listing Rules Relating to Disciplinary Powers and Sanctions by 9 October.

Submission

The Institute issued a submission on 10 August, in response to the consultation proposals by the Securities and Futures Commission on amendments to the Code on Real Estate Investment Trusts.

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:

AML notices

The list of individuals and entities published under section 33 of the United Nations Sanctions (Central African Republic) Regulation 2020 (Cap. 537CM) was updated on 7 August. See the related UNSC press release for the changes.

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.

Useful Resources

Publications from other organizations:

Human signals: New patterns of behavior and the accounting profession by AICPA
Coronavirus: Introducing reverse stress testing by ICAEW
How to shape your corporate social responsibility around COVID-19 from Entrepreneur
3 steps to building strong risk management from Financial Management
How to lead a team when the path forward is increasingly unclear from Fast Company
How to (actually) change someone’s mind from Harvard Business Review
Evaluating blockchain and internal control through a COSO lens from Journal of Accountancy

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Disclaimer: Some sections contain information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy of the content and the content does not necessarily represent the views of the Institute.

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