Your fortnightly technical updates newsletter (30 September 2020)

Members' Handbook

Update No. 246 relates to the issuance of Hong Kong Standard on Related Services 4400 (Revised) Agreed-Upon Procedures Engagements. The standard has been revised to respond to the growing demand for agreed-upon procedures engagements relating to both financial and non-financial subject matters.

Standard setting

Invitation to comment

Don’t forget to submit your comments on the Institute’s Exposure Draft Proposed Amendments to Accounting Guideline 5 Merger Accounting for Common Control Combinations by 16 October.

IASB investor perspective article

Issue 21 of the International Accounting Standards Board (IASB) Investor Update is now available and highlights:

Covid-19-Related-Rent Concessions – Amendment to IFRS 16 Leases issued in May that provides an optional relief for rent concessions arising as a direct consequence of COVID-19; and
The IFRS Interpretations Committee’s tentative agenda decision on presentation of reverse factoring arrangements and their related cash flows.

IASB September 2020 update

The September Update newsletter, highlighting the tentative decisions reached at the IASB’s monthly meeting, is now available.

September 2020 IFRS for SMEs update

The September 2020 IFRS for SMEs Update newsletter, providing a summary of news, events, and other information about the IFRS for SMEs standard and related SME activities, is now available.

September IFRS Interpretations Committee update

The September IFRS Interpretations Committee Update newsletter, summarizing the decisions reached by the Interpretations Committee at its September meeting, is now available.

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 11 December.

Institute submission

The Institute has submitted comments on the IAASB's Proposed ISA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors).

Auditing and Assurance Standards Committee meeting minutes

Minutes of the 384th meeting is now available.

IAASB’s virtual roundtable

An archive of the IAASB’s virtual roundtable - Fraud in the Digital Age is now available.

Non-authoritative support material for using automated tools and techniques when performing audit procedures

The IAASB Technology Working Group’s new publication assists auditors in understanding whether a procedure involving automated tools and techniques may be both a risk assessment procedure and a further audit procedure.

Invitation to comment

The Institute has extended the comment period for Exposure Draft of 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 until 20 October. This is a component of the Institute’s proposal to enhance the risk-based supervision of accounting professionals concerning anti-money laundering and counter-terrorist financing compliance.

Reporting of sustainable value creation

The World Economic Forum publication provides a core set of common metrics and disclosures on non-financial factors to help companies to align their mainstream reporting on performance against environmental, social and governance (ESG) indicators and track their contributions towards the Sustainable Development Goals on a consistent basis.

Advocacy and practice development

Submission

The Institute issued a submission in response to the Stock Exchange of Hong Kong’s consultation paper on Proposals to Introduce a Paperless Listing & Subscription Regime, Online Display of Documents and Reduction of the Types of Documents on Display. In the submission, the Institute’s Corporate Finance Advisory Panel indicated its general support for moving towards to a paperless regime, while suggesting refinements to certain specific proposals.

Invitation to comment

The Securities and Futures Commission (SFC) launched a consultation on proposals to amend its anti-money laundering and counter-financing of terrorism guidelines. The deadline for submission to the SFC is 18 December. Please refer to the press release for details.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

AML notices

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:

Enhancing corporate reporting: The way forward by IFAC
Corporate governance in COVID-19: Cybersecurity and technology considerations from Journal of Accountancy
Stop thinking of resilience as a trait. It's more than that from Fast Company
Why your business needs an advisory board and how to start one from Financial Management
Reshaping the CFO Role from CFO.com
7 Strategies for better group decision-making from Harvard Business Review
How to strengthen client relationships during a pandemic by AICPA

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