Your fortnightly technical updates newsletter (9 March 2022)

Members' Handbook

Update No. 271 relates to the publication of Initial Application of HKFRS 17 and HKFRS 9 — Comparative Information (Amendment to HKFRS 17). The Amendment to HKFRS 17 is a transition option relating to comparative information about financial assets presented on initial application of HKFRS 17 Insurance Contracts, and is aimed at improving the usefulness of comparative information for users of financial statements. HKFRS 17, together with the amendment, is effective for annual reporting periods beginning on or after 1 January 2023.

The update also includes the withdrawal of HKFRS for Private Entities (Revised September 2015) as it was superseded by HKFRS for Private Entities (Revised May 2017) which has been effective for annual reporting periods beginning on or after 1 January 2017.

Standard setting

IASB February 2022 podcast & update

The International Accounting Standards Board (IASB) February podcast, with its chair, vice-chair and executive technical director highlighting the projects discussed during the February meeting, and a summary of the February meeting, are now available.

Appointment of new Chair of the IFRS Interpretations Committee

On 1 March, the Trustees of the IFRS Foundation announced the appointment of Bruce Mackenzie as the new chair of the IFRS Interpretations Committee, with effect from 1 March 2022. Mr Mackenzie has served as an IASB member since October 2020 and is taking over from Sue Lloyd, who is moving to the International Sustainability Standards Board (ISSB) as its inaugural vice-chair from March 2022, when she also steps down as IASB vice-chair.

Live virtual workshops: New quality management standards series

Join the new quality management standards series in April to learn key requirements, applications and illustrated examples on how small and medium practitioners could meet the requirements of the new quality management standards.

ICAEW audit and assurance resources

The Institute of Chartered Accountants in England and Wales (ICAEW) has the following resources that may be of interest to members:

Resources to help audit firms prepare for new quality management standards ISQM 1, ISQM 2 and ISA 220 (Revised)
Resource hub on articles, helpsheets and other practical resources and tools to support the implementation of ISA 540 (Revised)
An online event series designed to help small and medium practicesimplement the new quality management standards

Interested members can also subscribe to ICAEW’s International Standards platform for free gain access to a wide range of resources on auditing and ethics.

Invitation to comment

The Institute is seeking comments on the following International Ethics Standards Board for Accountants’ (IESBA) Exposure Drafts:

Proposed revisions to the Code Relating to the Definition of Engagement Team and Group Audits by 30 April 2022
Proposed Technology-Related Revisions to the Code by 20 May 2022

IESBA Global roundtables on enhancing ethics considerations relating to tax planning and related services

The IESBA will hold a series of three global virtual roundtables in April to obtain stakeholder feedback on matters relating to the development of an ethics standard addressing the provision of tax planning and related services by professional accountants in business and professional accountants in public practice. Register your interest by 31 March 2022.

Ethics in an era of complexity and digital change

The Chartered Professional Accountants of Canada, the Institute of Chartered Accountants of Scotland, the IESBA and the International Federation of Accountants (IFAC) released the third publication in a four-part thought-leadership series examining the impact of rapid technological change on ethical leadership and the accountancy profession. The latest installment examines the high-stakes impact that bias and mis- and disinformation have on trust and objective decision-making. The first two installments are available on IESBA’s designated webpage: Ethical Leadership in the Digital Age.

IFRS Foundation agrees to establish ISSB presence in Frankfurt

On 2 March, the Trustees of the IFRS Foundation signed Memoranda of Understanding (MoUs) with German public and private sector institutions to formalize the partnerships and funding arrangements required to establish the presence of the ISSB in Frankfurt. The MoUs mark a key first step towards establishing the ISSB’s global, multi-location presence to support its broad stakeholder base.

Advocacy and practice development

Institute’s response to 2022-23 budget

The government’s 2022-23 budget included a number of suggestions made by the Institute in its budget submission. The Institute welcomed the government's Budget 2022-23, acknowledging the government’s efforts to help the public cope with the latest wave of the pandemic and to tackle the economic downturn. See the Institute’s press release.

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 matters:

AML notices

AML news

IFAC, together with ICAEW, released a new instalment in its Anti-Money Laundering: The Basics educational series: Installment Seven: Virtual Assets.

Please refer to the press release for details.

Sanctions updates

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 8 March 2022. See the relevant UNSC press release.

The List of individuals and entities published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB), was updated on 8 March 2022. See the relevant UNSC press release.

The List of individuals and entities published under section 30 of the United Nations Sanctions (Yemen) Regulation 2019 (Cap. 537CI), was updated on 3 March 2022.

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:

Time for action on sustainability: Next steps for the accountancy profession by IFAC
Ethical leadership in an era of complexity and digital change: Introduction by CPA Canada
Why inclusive leadership is so vital to D&I by ICAEW
15 ways to be awesome at managing people from Entrepreneur
Net zero: How do businesses position themselves? from In the Black
Want to boost your cybersecurity? Here are 10 steps to improve your defences now from ZDNet

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Disclaimer: Some sections contain information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy of the content and the content does not necessarily represent the views of the Institute.

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