Your fortnightly technical updates newsletter (20 April 2022)

Standard setting

IASB March 2022 podcast

In this podcast, International Accounting Standards Board (IASB) Chair Andreas Barckow and Executive Technical Director Nili Shah discuss the topics from the March IASB meeting. Topics discussed include primary financial statements, financial instruments with characteristics of equity, post-implementation review of IFRS 9 – classification and measurement, business combinations under common control and second comprehensive review of the IFRS for SMEs Accounting Standard.

IAASB Modernizes Its Standard for Group Audits in Support of Audit Quality

The International Auditing and Assurance Standards Board (IAASB) released ISA 600 (Revised), Special Considerations–Audits of Group Financial Statements (Including the Work of Component Auditors). The revised standard addresses special considerations that apply to audits of group financial statements (group audits). Group audits are often more complex and challenging than single-entity audits because a group may have many entities or business units across multiple jurisdictions, and component auditors may be involved. The revised standard becomes effective for audits of group financial statements for periods beginning on or after 15 December 2023.

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.

Invitation to comment

The Institute is seeking comments on the following issued by the International Ethics Standards Board for Accountants (IESBA):

Strategy Survey 2022 for the development of the IESBA’s strategy and work plan 2024-2027 by 8 June 2022
Exposure Draft on Proposed Revisions to the Code Relating to the Definition of Engagement Team and Group Audits by 30 April 2022
Exposure Draft on Proposed Technology-Related Revisions to the Code by 20 May 2022. Members may watch the IESBA’s webinar to understand more on the proposed revisions and are encouraged to take part in the Institute’s survey to share your views on the proposed revisions by 11 May 2022

Revised non-assurance services and fee-related provisions of the Code of Ethics for Professional Accountants

Register for the e-learning session which covers specific provisions of the revised non-assurance services (NAS) and fee-related independence standards of the Code. The revisions significantly strengthen the guardrails around auditor independence in two important areas that have the potential to create incentives influencing auditor behavior — NAS provided to audit clients and fees. They will come into effect in December 2022.

Global ethics board expands universe of entities that are public interest entities

The IESBA released the revised definition of a public interest entity (PIE) together with other revised provisions in the Code. The revised provisions specify a broader list of categories of entities as PIEs whose audits should be subject to additional independence requirements to meet stakeholders’ heightened expectations concerning auditor independence when an entity is a PIE. The revised PIE definition and related provisions become effective for audits of financial statements for periods beginning on or 15 December 2024. Early adoption is permitted and encouraged.

IESBA quality management-related conforming amendments to the Code

The IESBA also released a number of conforming amendments to the Code as a result of the issuance of the IAASB’s suite of quality management standards. These conforming amendments will be effective as of 15 December 2022.

Virtual roundtable on ISSB exposure drafts

The Institute will host a virtual roundtable on 11 May to discuss the following International Sustainability Standards Board (ISSB) exposure drafts (EDs):

IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information
IFRS S2 Climate-related Disclosures

Representatives from the ISSB will be guiding the discussions at the roundtable and will interact directly with participants. Join the Institute staff and other stakeholders in this virtual roundtable to express your views and help steer the ISSB in developing the global baseline for sustainability disclosures.

If you cannot attend the roundtable but would like to know more about the EDs and provide your comments, please visit the Institute’s website for details.

Live webinars on ISSB exposure drafts

Members may also join the two live webinars organized by ISSB on 28 April for stakeholders on its proposed standards on general sustainability-related disclosures and climate-related disclosures. The webinars will provide an overview of the ISSB proposals and an opportunity for participants to ask questions.

IFRS Foundation to establish ISSB presence in Montreal

On 6 April, the IFRS Foundation and Chartered Professional Accountants of Canada announced an agreement to establish the Montreal centre of the ISSB. The Montreal centre will host key functions on behalf of the ISSB, including the coordination of activity across the Americas.

Advocacy and practice development

Electronic filing of Employer’s Return - easy, secure and environment-friendly

Employer’s Returns of Remuneration and Pensions (Form BIR56A) for the year ended 31 March 2022 were issued on 1 April 2022. Employers are required to complete and return the form to the Inland Revenue Department (IRD) within one month together with the Form IR56B for the relevant employees. However, the deadline for filing of Employer's Returns for the year then ended has been extended to 1 June 2022. Employers can file the returns via the Internet through the e-filing service for Employer's Returns under eTAX. Alternatively, employers can use the IR56 Forms Preparation Tool to prepare annual IR56B data file for uploading to the IRD via the Mixed Mode service.

Please visit the IRD website for details.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

Employer’s Return of Remuneration and Pensions
Government welcomes passage of tax concessions
Secretary for Financial Services and the Treasury’s opening remarks on public finance and financial services at the LegCo Finance Committee special meeting
Stamp Duty statistics

Announcements by the government

Members may wish to be aware of the following matters:

AML notices

The following regulations were gazetted on 14 April:-

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:

Co-creating the future of finance: A leadership group’s quest from Journal of Accountancy
Persuading your team to embrace change from Harvard Business Review
Why leaders need to prioritize their team’s mental health from Forbes
Remote or the office: Striking the right balance from Financial Management

Install the HKICPA Events app

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.

This email together with the file(s) transmitted is intended solely for addressee(s) only and may contain confidential or privileged information. If you received this email in error, please contact the sender and delete it together with its attachment(s) from your computer(s). You should note that the views expressed in this email are those of the author and do not necessarily represent those of the Institute. The recipient should check this email and all attachments for the presence of virus. The Institute will not accept liability for any damage caused by any viruses transmitted with this email.

Manage communication preferences | Privacy policy | Personal information | Contact us