Standard setting |
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COVID-19-related rent concessions beyond 30 June 2021 |
The International Accounting Standards Board (IASB) held a supplementary meeting on 4 February to consider whether to extend the time period over which the practical expedient in paragraph 46A of IFRS 16 Leases is available for use. The Exposure Draft COVID-19-Related Rent Concessions beyond 30 June 2021 was published on 11 February with a 14-day comment period. The IASB expects to publish the final amendment to IFRS 16 by the end of March. The Institute aims to publish an equivalent amendment to HKFRS 16 as soon as practicable after the IASB has issued its amendment. The Institute submitted its comment letter on the exposure draft. |
Institute update on HKFRS Practice Statement 2 Making Materiality Judgements |
The Institute expects to issue HKFRS Practice Statement 2 Making Materiality Judgements, the local equivalent to IFRS Practice Statement 2, in late March. The practice statement is non-mandatory guidance on how to make materiality judgements when preparing financial statements. It does not change or introduce any requirements in the HKFRS, and companies are not required to comply with it to state compliance with the HKFRS. The Institute previously issued an invitation to comment on the exposure draft in November 2015. Entities will be permitted to apply HKFRS Practice Statement 2 to financial statements prepared from its date of issuance. |
Institute roundtable for the post-implementation review of IFRS 10, IFRS 11, and IFRS 12 |
On 8 April, the Institute is holding a roundtable collecting feedback for the IASB’s 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. The review seeks feedback on applying these three standards and on the information provided to users of financial statements. Representatives from the IASB will participate in the roundtable, and this will be an excellent opportunity to communicate directly with local and international standards setters. Members can also submit comments by 1 April. |
IASB February 2021 podcast |
The February podcast, focusing on the IASB discussions at its monthly meeting, is now available. |
Recording of IASB’s webinar on Exposure Draft Regulatory Assets and Regulatory Liabilities |
A recording is now available of the webinar held by the staff of the IASB that provided an overview of the proposals of the Exposure Draft ED/2021/1 Regulatory Assets and Regulatory Liabilities. The Institute is also seeking comments on the exposure draft by 31 May. |
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Invitation to comment |
The Institute is seeking comments on the International Auditing and Assurance Standards Board (IAASB) Exposure Draft Conforming and Consequential Amendments to the IAASB’s Other Standards as a Result of the New and Revised Quality Management Standards by 23 April. The proposed revisions align the IAASB’s standards related to review, assurance and related services, as well as its framework, with the new quality management standards through conforming amendments. |
Institute submission |
The Institute has submitted comments on the 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. |
Workshop for new auditors – Rerun |
Join the workshop on 17, 18 and 19 March covering the core concepts and practical skills essential for new auditors. Speakers will teach the auditing concepts and practical skills, as well as shares recent practice experience, relevant to new auditors. The workshop targets auditors with less than two years of experience. |
A new approach to risk assessment |
In an article in International Standards, the Institute of Chartered Accountants in England and Wales (ICAEW) shares some of the practical challenges and areas of focus for auditors in the implementation of ISA 315 (Revised) Identifying and Assessing the Risks of Material Misstatement Through Understanding of the Entity and Its Environment. Institute members can subscribe to ICAEW’s International Standards for free. |
Recent developments in extended external reporting assurance |
The International Federation of Accountants’ (IFAC) article reviews two companion academic articles recently published in the Institutional Perspectives section of the Journal of International Financial Management and Accounting that together provide a contemporaneous and comprehensive assessment of the extended external reporting assurance landscape. |
ESG reporting and attestation roadmap |
The Association of International Certified Professional Accountants and the Center for Audit Quality’s publication includes a new roadmap to provide audit practitioners with a blueprint to support companies in achieving their environmental, social, and governance (ESG) reporting goals and provide ESG-related tools for auditors. |
Vision for accelerating integrated reporting assurance |
The IFAC is partnering with the International Integrated Reporting Council on a joint initiative to help more businesses implement integrated reporting. The first instalment sets out what integrated reporting assurance involves for organizations, auditors, and others. It also addresses the difference between the two types of assurance – limited and reasonable – and what is required of auditors and organizations to strive for reasonable integrated reporting assurance. |
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Invitation to comment |
The Institute is seeking comments on the International Ethics Standards Board for Accountants (IESBA) Exposure Draft Proposed Revisions to the Definitions of Listed Entity and Public Interest Entity in the Code by 3 April. The proposed revisions broaden the definition of a public interest entity (PIE) in the International Code of Ethics for Professional Accountants (Including International Standards) to include more categories of entities. Members are also invited to share your views by joining the Institute’s roundtable on 7 April. The IESBA will hold global webinars on 25 and 29 March on key proposals in the exposure draft. During the webinars, the task force chair will discuss:
- The overarching objective for additional independence requirements for audits of PIEs
- Approach to revising the PIE definition and the introduction of a new term “publicly traded entity” to replace “listed entity”
- Anticipated role of regulators, national standard setters and other relevant local bodies to refine the PIE definition as part of the adoption process
- Increased role of firms
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lFAC Exploring the IESBA Code: The Building Blocks Instalment |
This final instalment of Exploring the IESBA Code explains the “building blocks” structure of the International Code of Ethics for Professional Accountants (Including International Independence Standards) (IESBA Code) and its interconnected nature to help readers better understand how to use and navigate the IESBA Code so that they can quickly identify and access the ethics and independence standards and guidance relevant to them. |
