Issue no. 37
(02 Feburary 2005)
      Dear Members / Member Practices,
In this issue
Guidance on Disclosure of the Impact of Adopting New HKFRSs
Draft Interpretation on Revenue Recognition by Property Developers
Upcoming CPD Programmes
International Conference on Combating Money Laundering
News from Mandy Tam
Circular to Members and Member Practices

HKICPAs Issues Guidance on Disclosure of the Impact of Adopting New HKFRSs

The HKICPAs has issued guidance to members and member practices in a Circular dated 26 January 2005, encouraging preparers of financial statements to disclose the impact of new and revised Hong Kong Financial Reporting Standards and Hong Kong Accounting Standards (new HKFRSs) effective for accounting periods beginning on or after 1 January 2005.

The HKICPAs Circular provides the recommended wording developed by the Financial Reporting Standards Committee and Auditing and Assurance Standards Committee for companies to include in their financial statements so that readers of those statements understand the ramifications of the new HKFRSs.


Professional Pronouncements

HKICPAs Issues Draft Interpretation on How Revenue is Recognised by Property Developers

The HKICPAs has issued an Exposure Draft of Draft Interpretation 24 Revenue ¡V Pre-completion Contracts for the Sale of Development Properties for consultation until 8 March 2005.

Right now, many Hong Kong developers use the "stage of completion" method, whereby they can recognise revenue from pre-completion contracts as the development of the properties progresses. The other commonly used method is to recognise revenue only when the development is complete.

Once the Draft Interpretation is implemented, developers will only be able to recognise revenue when the significant risks and rewards of ownership of the properties have been transferred to buyers, which in most cases would be after the development is complete. The relevant Financial Reporting Standards are SSAP 18 and HKAS 18 Revenue. The Institute is recommending three possible transitional provisions for adopting the Draft Interpretation, and is asking for comments on these provisions.


Continuing Professional Development (CPD)

Highlights of Upcoming CPD Programmes

The Institute is offering a wide range of courses and workshops for members during February and March. Topics include:

Considering Fraud in an Audit of Financial Statement

PRC Tax Update

Budget Commentary 2005/2006

Update on Development in Hong Kong Accounting Standards for 2004

Enhancing Interpersonal Relationship Through Personality Development (Using Enneagram)

and more ......

Seats are limited. Sign up now to avoid disappointment.

Click here to register.

e-Workshop on Recently and New Hong Kong Accounting Standards and Comparison with US GAAP (Ref:EW001)

A new e-Workshop has been posted onto the HKICPA website for members' subscription. Presented by Mr. Paul Pacter, Director, IFRS Global Office of Deloitte Touche Tohmatsu, this e-Workshop will cover a number of Hong Kong Accounting Standards (HKASs) and Hong Kong Financial Reporting Standards (HKFRSs) including HKAS 1, 2, 8, 10, 16, 17, 21, 24, 27, 28, 31, 32, 33, 39, 40 and HKFRS 1, 2, 3, 4, 5 and 6.

Register now to update yourself of the new and revised Hong Kong accounting standards and get structured CPD hours at your convenience, anywhere, any time, any place via the Internet.


International Conference
International Conference on Combating Money Laundering - 16 and 17 February 2005 Hong Kong

The Narcotics Division of the Security Bureau of the Hong Kong SAR Government is organising a 1.5 day conference on "Creating Global Partnership and Synergy in the Fight Against Money Laundering", to be held on 16 and 17 February 2005 at the Hong Kong Convention and Exhibition Centre. Members who are interested in attending the conference may refer to the Conference website for registration and further details.


News from Mandy Tam

 

Your views on the Inland Revenue Ordinance (Cap. 112)

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  Telephone no. E-mail address
Mr. Andrew Wong 2287 7245 andrew@hkicpa.org.hk
Mr. Tomas Chan 2287 7041 tomaschan@hkicpa.org.hk
Ms. Vian Tai 2287 7224 vian@hkicpa.org.hk
Mr. Kelvin Chiu 2287 7096 kelvin@hkicpa.org.hk


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