IFAC Implements New Initiatives |
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t its meeting last week in New York, IFAC agreed to initiate a global study on enhancing financial reporting, develop |
guidance materials for SME audit engagements, and support developing nations to converge with international standards. The meeting also approved a guidance document on environmental management accounting. Click here to see the release.
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Attending the meeting on behalf of the Institute were president Edward K.F. Chow and its IFAC board member Dr. Eric Li. |
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Update on AE/AS Requirements |
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he Institute has different levels of recognition arrangements with various accounting bodies. For some bodies, the Institute recognises both the |
qualifying examination and the practical experience for membership admission, while for others the Institute only recognises the examination in full or in part.
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The requirements for Authorised Supervisors and Counsellors of Authorised Employers have changed with effect from 1 July 2005 such that only persons with three years' membership with the Institute or one of the eight chartered accountancy bodies with which the Institute has a reciprocal membership agreement are eligible. This is because the Institute recognises not only the professional examination of these eight bodies, but also the practical experience, acquired under a training contract, of their members. These bodies are:
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Canadian Institute of Chartered Accountants |
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Institute of Chartered Accountants in Australia |
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Institute of Chartered Accountants in England and Wales |
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Institute of Chartered Accountants in Ireland |
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Institute of Chartered Accountants of New Zealand |
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Institute of Chartered Accountants of Scotland |
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Institute of Chartered Accountants of Zimbabwe |
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South African Institute of Chartered Accountants |
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Under the new mutual recognition agreement between the Institute and CPA Australia that took effect on 1 July 2005, the Institute recognises the CPA Australia professional examination and is discussing the feasibility of enhancing the practical experience programme of CPA Australia with a view to recognition. Until this recognition is in place, CPA Australia members are not eligible for registration as Authorised Supervisors and Counsellors of Authorised Employers. |
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Click here for more information and the AE/AS application forms. |
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Good News for Insolvency Programme Candidates |
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he Institute's Diploma in Insolvency Programme has been recognised under the Continuing Education Fund. On completion of the programme, qualified |
candidates can claim back $10,000 in course fees from the fund. |
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The deadline for late application to the programme is now extended to 9 August, with confirmation of acceptance deferred to 24 August. Click here to apply now. |
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TIG to Hold "Double Taxation Arrangement" Forum |
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arly support for the Taxation Interest Group (TIG) has been very good, with a membership |
reaching 370 in just two months. It will hold its first technical event, a discussion forum on the Mainland - Hong Kong Double Taxation Arrangement, on 16 August. This is timely as next month the government will start talking to Mainland authorities on expanding the Arrangement. Click here to apply.
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We note that recently there has been some confusion about the rationale for forming the TIG, including that it was a government or joint initiative, |
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Taxation Committee chair Paul Chan officiated the TIG Launch this June. |
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or that it was formed to look into reform of the Inland Revenue Ordinance. This is not the case. In fact, the idea for forming a TIG was first discussed by the Institute's Taxation Committee over a year ago. The response so far clearly shows there is significant demand amongst members for a tax forum. If you, too, are interested in joining the TIG and learning more about the tax issues affecting business here and on the Mainland, please click here. |
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Practice Review Becomes Risk-based |
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he Institute has issued a Communication Paper providing details on the progress of the revision to |
the Practice Review Programme, which will adopt a risk-based approach.
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The Communication Paper also seeks comments, by 30 September, on the draft practice review self-assessment questionnaire. |
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CPA Practices Reviewed Last Year |
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he Institute's Operations Report of the Practice Review Committee sets out the findings of its review in 2004 of 53 |
CPA practices involving 272 audit files. The major findings are in relation to inadequate audit documentation.
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The Institute is one of the first accountancy institutes in the world to introduce a mandatory practice review system. First introduced in 1992, the Practice Review Programme reviews whether CPA practices observe, maintain or apply professional standards in their audit and assurance work. |
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Handbook Update No. 16 |
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Measurement," HKFRS 1, "First-time Adoption of Hong Kong Financial Reporting Standards" and HKFRS 6, "Exploration for and Evaluation of Mineral Resources." It also includes a new PN 720 on "Acting as Scrutineer at a General Meeting of a Listed Issuer." |
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TechWatch Issue 35 |
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n addition to the projects on practice review and handbook update, the latest TechWatch features three |
"Invitations to Comment" on international exposure drafts on financial reporting, auditing and ethics. |
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CPD Update |
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heck out the following programmes on HKFRS / IFRS training, which are still open for enrolment: |
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