Your fortnightly technical updates newsletter (19 January 2022)

Members' Handbook

Update No. 270 includes editorial revisions to:

Code of Ethics for Professional Accountants to align with the 2021 edition of the Handbook of International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA handbook) and other housekeeping editorial changes, including updating the references to local legislations and regulations in Chapter C
Revisions to the Non-Assurance Services Provisions of the Code and Revisions to the Fee-related Provisions of the Code to align with the IESBA handbook

Standard setting

Institute submissions

The Institute has submitted its comment letters on the following International Accounting Standards Board consultation documents:

January IFRS Interpretations Committee podcast

The IFRS Interpretations Committee podcast, highlighting the committee’s key activities during the last quarter of 2021, is now available. Topics discussed include economic benefits from use of a windfarm, principal versus agent: software reseller, negative low emission vehicle credits, and lease liability in a sale and leaseback.

Live virtual workshops

HKSA 315 (Revised 2019) Identifying and Assessing the Risks of Material Misstatement – Key requirements and implications on auditing on 18 February to help participants to plan ahead for audits with year ends on or after December 2022
The New Quality Management Standards Series begins with a workshop on 8 March, covering key requirements and applications in practical scenarios, and illustrated with examples on how small and medium practitioners implement resources to meet the new requirements

Preparing for the new quality management standards

The last article of the series issued by the International Federation of Accountants on International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements sets out factors to be considered when designing and performing monitoring activities. For example, assessments given to the quality risks, design of risk responses, and any changes that may have occurred in the system of quality management. The article also emphasizes that it is important for firms to evaluate findings and identify deficiencies for designing and implementing remediation measures to establish and maintain an effective quality management system.

IAASB eNews

The International Auditing and Assurance Standards Board (IAASB) latest eNews is now available, highlighting various activities going on in and around the IAASB.

Advocacy and practice development

HKEX finalizes operational model for derivatives holiday trading

On 6 January, Hong Kong Exchanges and Clearing Limited (HKEX) published its consultation conclusions on derivatives holiday trading, finalizing the underlying operational model for non-Hong Kong dollar denominated futures and options trading and clearing services on Hong Kong public holidays.

Please refer to the press release for details.

Institute announces proposals for the 2022-23 budget

The Institute held an online media briefing on 18 January, hosted by the President, the chair of the Taxation Faculty Executive Committee (TFEC) and the convenor of the TFEC’s Budget Proposals Subcommittee, to announce its tax policy and budget proposals for 2022-23. Under the title, Building a Sustainable Future for Hong Kong, its economy and community, the proposals include a range of different measures, aimed at revitalizing the economy, providing community and targeted relief measures and aligning Hong Kong's tax system with international rules, as well as environmental measures to help support the goal of a carbon neutral Hong Kong.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

Announcements by the government

Members may wish to be aware of the following:

Financial support for catering, commercial bathhouse and places of public entertainment sectors under fifth round of Anti-epidemic Fund

AML notices

The list of terrorists and terrorist associates designated by the United Nations Security Council, published pursuant to the United Nations (Anti-Terrorism Measures) Ordinance (Cap.575), was gazetted on 5 January 2022. See the relevant UNSC press release.

The list of individuals, groups, undertakings and entities published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap.537CB) was updated on 5 January 2022. See the relevant UNSC press release.

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:

2022 trends for finance and accounting from In the Black
Why a CFO needs to wear two hats from Journal of Accountancy
5 tips for becoming a more effective leader for a virtual workforce from Financial Management
Designing your company’s sustainability report from Harvard Business Review
It's time for businesses to adapt to climate change. How should they do it? from Entrepreneur

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