Standard setting |
|
|
 |
Visit the recently launched What’s new webpage for the Standard Setting Department’s latest publications, webcasts, and comment letters. The page is a one-stop shop for the latest on standard setting. You can also follow us on LinkedIn to keep up to date with our upcoming activities. |
 |
Webinar series covering common application issues |
The Institute will hold a series of live webinars in June covering application issues of the following standards. These webinars will cover real-life examples, case studies and include live Q&A sessions:
- 2 June. Common application issues of HKFRS 9 Financial Instruments and HKFRS 15 Revenue from Contracts with Customers
- 11 June. Common application issues of HKFRS 3 Business Combinations
- 21 June. Common application issues of Accounting Guideline 5 Merger Accounting for Common Control Combinations
|
Webinar on HKFRS 17 Insurance Contracts – General insurance |
This webinar on 9 July aims to provide participants with practical knowledge of HKFRS 17 Insurance Contracts for non-life insurers. It will begin with a refresher of the standard followed by a walkthrough on how to apply it, with illustrative examples of the following areas:
- The eligibility assessment for premium allocation approach
- Contract boundary
- Grouping of insurance contracts and level of aggregation
- Reinsurance contracts
|
IFRS Foundation Virtual Conference 2021 |
The IFRS Foundation Virtual Conference 2021 will be held from 3-4 June. The conference will include discussions on how capital markets and international financial reporting have evolved during the past 20 years, the future of corporate reporting with investors, preparers and auditors, and the latest developments on sustainability reporting. |
Institute submission |
The Institute has submitted its comment letter on the International Accounting Standards Board’s (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. |
Institute educational guidance on contractual service margin under HKFRS 17 |
The Institute has published educational guidance on the recognition of the contractual service margin (CSM) in profit or loss under HKFRS 17. In particular, it focuses on the identification of coverage units and the determination of the relative weighting of the benefits provided for insurance contracts that provide multiple services. The guidance is designed to provide preparers with a summary of relevant requirements and principles in HKFRS 17, and to illustrate the potential application of those requirements to specific and simplified scenarios. Visit the insurance project webpage for further resources and updates. |
Amendments to IAS 12 Income Taxes (Deferred Tax related to Assets and Liabilities arising from a Single Transaction) |
The IASB has issued targeted amendments to IAS 12 Income Taxes to specify how companies should account for deferred tax on transactions such as leases and decommissioning obligations. In specified circumstances, companies are exempt from recognizing deferred tax when they recognize assets or liabilities for the first time. The amendments clarify that the exemption does not apply to transactions for which companies recognize both an asset and liability, such as leases and decommissioning obligations. The amendments to IAS 12 will be effective for annual reporting periods beginning on or after 1 January 2023, with early application permitted. |
IFRS Interpretations Committee’s fourth Compilation of Agenda Decisions |
The IFRS Interpretations Committee has published its fourth biannual Compilation of Agenda Decisions, which brings together agenda decisions from October 2020 to March 2021. The committee publishes agenda decisions when, following consultation, it decides further standard-setting is not required to deal with a question raised. Agenda decisions often include information to help entities applying standards. |
April IFRS Interpretations Committee update and podcast |
The April IFRS Interpretations Committee Update newsletter, summarizing the decisions reached by the committee and podcast, highlighting its key activities at its April meeting are now available. |
IASB request for fieldwork participants for disclosure requirements project |
The IASB is testing how the proposed disclosure requirements in Exposure Draft ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach would apply in practice. The board invites preparers of financial statements to participate in fieldwork to test the application of the proposed new requirements in IFRS 13 Fair Value Measurement, IAS 19 Employee Benefits, or both, as well as to summarize and report the results of the fieldwork. The Institute is also seeking comments on the Exposure Draft by 31 August. |
 |
Invitation to comment |
The Institute is seeking comments on the International Auditing and Assurance Standards Board (IAASB) Survey Consultation, the IAASB’s Work Plan for 2022-2023 by 5 July. |
Workshop for audit managers/seniors in-charge (pilot run) |
Join the workshop on 18, 21 and 25 June which is tailored for audit managers or seniors in-charge with more than two years of auditing experience. The workshop focuses on advanced auditing topics such as risk assessment procedures, auditing accounting estimates, going concern assessment etc. It also teaches auditing concepts and practical skills, as well as sharing of recent practice experience relevant to participants. |
IAASB revised detailed work plan table for 2020-2021 |
The IAASB has published a revised detailed work plan to account for the continued impact of the COVID-19 pandemic on both board operations and stakeholders’ capacity to implement new standards and participate in the IAASB’s due process. |
ICAEW audit and assurance spring update |
Join the Institute of Chartered Accountants in England and Wales (ICAEW) virtual CPD 2021 programme on 14 June of to gain insights into the required changes for the audit of accounting estimates and practical implementation tips in the 2020/2021 reporting environment. |
IAASB April board meeting |
The audio recording of the IAASB April board meeting is now available. |
New IAASB video on quality management standards |
The IAASB has released a new video on quality management standards addressing considerations for firms when preparing to implement the standards, such as what may be retained from current systems, the time and resources needed, the impact on the firm as a whole, and various ways to approach implementation. The new and revised quality management standards will become effective on 15 December 2022. Visit the Institute’s resource centre for pronouncements, guides and articles relating to quality management for firms and engagements. |
AUASB audit and assurance resources |
The following from the Australian Auditing and Assurance Standards Board (AUASB) may be of interest to members:
|
Considerations relating to SPAC initial public offerings and mergers |
The Centre for Audit Quality has issued an alert providing an overview of what a special purpose acquisition company (SPAC) is and some key considerations for auditors and audit committees related to the unique risks and challenges of a private company entering the public markets through a merger with a SPAC. |
 |
Institute submission |
The Institute submitted 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. |
IESBA revises auditor independence ethics rules |
The IESBA has released revisions to the non-assurance services and fee-related provisions of the International Code of Ethics for Professional Accountants (including International Independence Standards). The revised provisions significantly strengthen the guardrails around auditor independence in two important areas that have the potential to create incentives influencing auditor behaviour – non-assurance services provided to audit clients and fees. |
Ethical challenges as the pandemic wanes |
A working group formed by the IESBA and some national ethics standard setters has published an article looking at the key ethical issues that lie ahead for accountants as the COVID-19 pandemic moves into the next phase. |
 |
Proposed amendments to the IFRS Foundation constitution |
The IFRS Foundation has published proposed amendments to its constitution to accommodate the potential creation of a new International Sustainability Standards Board within the governance structure of the IFRS Foundation. In addition, the IFRS Foundation Trustees have published a comprehensive feedback statement that summarizes responses received to their consultation on sustainability reporting. The Institute invites comments on the proposals by 2 July. |
