Standard setting |
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Invitation to comment |
The Institute is seeking comments on:
- The IASB Exposure Draft ED/2020/4 Lease Liability in a Sale and Leaseback by 10 March 2021
- The IASB Request for Information Post Implementation Review of IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities by 1 April 2021
- The IASB Discussion Paper DP/2020/2 Business Combinations under Common Control by 5 July 2021
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Frequently asked questions on the interaction between HKFRS 16 Leases and the Hong Kong Insurance (General Business) (Valuation) Rules |
The Institute has issued an FAQ to make members aware of a recently issued circular from the Insurance Authority on applying the provisions of Insurance (General Business) (Valuation) Rules in the valuation of a right of use asset and related lease liability and its relation to HKFRS 16 Leases. |
IASB investor perspective article |
Issue 22 of the International Accounting Standards Board (IASB) Investor Update is now available and highlights financial reporting challenges arising from COVID-19. |
December 2020 IASB podcast and update |
The December podcast, focusing on the IASB discussions at its monthly meeting, and the December IASB Update, highlighting the tentative decisions reached at the IASB monthly meeting, are now available. |
December IFRS Interpretations Committee update |
The December IFRS Interpretations Committee Update newsletter, summarizing the decisions reached by the Interpretations Committee at its September meeting, is now available. |
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Webinar on solicitors’ accounts rules and PN 840 reporting engagements |
Practising members are sometimes engaged to issue an accountant’s report on a firm of solicitors. The report is prepared with regard to the requirements of the Solicitors’ Accounts Rules and Accountant’s Report Rules made under the Legal Practitioners Ordinance (Cap. 159) as explained in Practice Note (PN) 840 Reporting on Solicitors' Accounts under the Solicitors' Accounts Rules and the Accountant's Report Rules. The Institute’s webinar on 4 January will explain solicitors’ obligations with respect to their handling of clients’ money and common breaches of such obligations, followed by a panel discussion on pitfalls in solicitors’ accounts reporting. |
Guidance and webinar on ESG Assurance Reporting |
The Institute has published Auditing and Assurance Technical Bulletin (AATB) 5 Environmental, Social and Governance (ESG) Assurance Reporting to provide practical non-authoritative support material intended to assist practitioners in performing ESG assurance engagements in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical Financial Information. To help practitioners better understand the contents of AATB 5, a lunch webinar on AATB 5 and assuring ESG reports will be held on 13 January. |
Invitation to comment |
The Institute is seeking comments on the International Auditing and Assurance Standards Board (IAASB) Discussion Paper Fraud and Going Concern in an Audit of Financial Statements: Exploring the Differences Between Public Perceptions About the Role of the Auditor and the Auditor’s Responsibilities in a Financial Statement Audit by 31 December. |
IAASB issued quality management standards for auditors |
The IAASB has issued a set of three revised quality management standards aimed at improving quality management for auditors across the globe. The standards become effective on 15 December 2022. The Institute will follow the International Convergence Programme for local adoption in due course. |
IAASB December virtual meeting |
The highlights and audio of the IAASB December virtual meeting is now available. |
IAASB’s videos on quality management standards |
The IAASB has published video introductions to the new and revised quality management standards explaining the key aspects of the three standards to help stakeholders begin their implementation efforts. |
IAASB communique on audits of less complex entities |
The IAASB has issued a communique detailing development plans for a separate standard for audits of less complex entities. |
IFAC support resources |
The International Federation of Accountants (IFAC) releases the following support resources:
- A publication describing an agreed-upon procedures (AUP) engagement with case studies and example procedures that might be applied and two illustration AUP reports from ISRS 4400 (Revised) Engagements To Perform Agreed-Upon Procedures Regarding Financial Information.
- A brochure explaining and differentiating the range of audit, review, compilation, and AUP services which small- and medium-sized practices can provide and tailor to meet the needs of their small- and medium-sized entity clients.
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ICAEW guidance on determining materiality during COVID-19 |
COVID-19 is likely to impact how materiality in audits is determined by auditors and the choice of benchmarks used. This ICAEW article provides reminders to auditors of considerations when determining materiality in audits as well as how these considerations might be relevant in the current environment. |
UK FRC response to using technology to enhance audit quality |
The UK Financial Reporting Council (FRC) has published its response to its recent consultation, Technological Resources: Using Technology To Enhance Audit Quality. The FRC's response incorporates discussion of responses received as well as discussion of other matters that have arisen throughout additional outreach and engagement with stakeholders. |
Reminder - Auditing and COVID-19 |
The Institute’s quick guide provides 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 period. |
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IESBA November – December virtual meeting |
The audio of the International Ethics Standards Board for Accountants (IESBA) November – December virtual meeting is now available. |
Guidance on navigating the heightened risks of fraud during the COVID-19 pandemic |
The Staff of the South African Independent Regulatory Board for Auditors, IESBA and IAASB jointly released a publication highlighting the heightened risks of fraud arising from the disruptive and uncertain COVID-19 environment and the implications for professional accountants in business, including accountants in government, and professional accountants in public practice, including auditors. |
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New guidance on integrating climate-related matters into financial reporting |
The Climate Disclosure Standards Board has issued new guidance on the disclosure of the financial effects of climate-related issues on a company’s financial statements. The guidance builds upon the existing IFRSs and addresses three main questions: Are climate-related matters relevant to financial reporting? How should climate-related matters be factored into a company’s financial reporting and what this might look like? What steps can companies take to integrate material climate-related matters into financial reporting? |
