Your fortnightly technical updates newsletter (24 August 2022)

Offline Members' Handbook

Due to system limitations, the offline version of the Members’ Handbook is updated only up to Update No. 272 (March 2022) and does not reflect any subsequent updates. The offline version will be decommissioned in Q4 2022.

Please refer to the online Members’ Handbook for the latest version. The online version can also be downloaded for offline use.

Online Members' Handbook

Update No. 277 contains the following updates to Volume II of the Members’ Handbook:

The fundamental structure of Volume II of the Members’ Handbook has been re-arranged into two sections. Section 1 includes all financial reporting standards that are effective for accounting periods beginning on or after 1 January 2022. Section 2 includes financial reporting standards that are effective for accounting periods beginning on or after 1 January 2023.
Consequential amendments arising from Hong Kong Financial Reporting Standards (HKFRSs) and amendments that are effective for accounting periods beginning on or after 1 January 2023 were previously set out in the appendices to the respective HKFRSs, but are now incorporated into the text of the relevant HKFRSs, Basis for Conclusions and Illustrative Examples in Section 2.
HKFRSs included in Section 1 are updated for editorial corrections.

Standard setting

Live webinar: Accounting for Cryptoassets

Register for the live webinar on 22 September which will go through the commonly seen accounting issues associated with cryptoassets, including determination of active market, application of the broker-trader measurement exception in Hong Kong Accounting Standard 2 Inventories, and assets held by a custodian or crypto-exchange. The speaker will also share ways to deal with more complex issues, such as stable coins, initial coin offerings, mining activities, and payments to service providers/employees using cryptoassets.

Invitations to comment

The Institute is seeking comments on:

the International Auditing and Assurance Standards Board (IAASB) Exposure Draft on proposed narrow scope amendments to International Standard on Auditing (ISA) 700 (Revised), Forming an Opinion and Reporting on Financial Statements and ISA 260 (Revised), Communication with Those Charged with Governance by 4 September. The proposed amendments will help operationalize recently approved changes to the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) related to listed and public interest entities. The changes to the Code require firms to publicly disclose when the independence requirements for public interest entities have been applied in an audit of financial statements.
Exposure Draft Practice Note 851 (Revised), Reporting on the Annual Financial Reports of Non-Governmental Organisations on proposed updates to align the practice note with Hong Kong Standard on Assurance Engagements 3000 (Revised), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information and the current version of the Lump Sum Grant Manual published by the Social Welfare Department of the Government of the HKSAR.

IFAC e-International standards survey

The International Federation of Accountants (IFAC) is seeking user feedback via a brief survey by 31 August that will help shape phase two of its digital platform, e-International Standards (eIS). The eIS provides direct access to the standards developed by the IAASB, the IESBA, and the International Public Sector Accounting Standards Board (IPSASB), alongside key support, reference, and guidance materials, available to contextualize the language and provide enhanced transparency.

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:

The report, Sharpening the Focus on Corporate Fraud, describes the significant resources devoted to fraud-related activities within individual audit firms, and across the profession and looks at what more can be done by all players in the financial reporting ecosystem to improve fraud deterrence and detection.
Resources to help audit firms prepare for the new and revised quality management standards under ISQM 1, ISQM 2 and ISA 220 (Revised).

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

HKICPA resource centre

Access resources and publications at the Institute’s revamped Resource Centre to the Code which will keep you updated on the latest ethics pronouncements.

ISSB July 2022 Jurisdictional Working Group meeting summary

The meeting summary of the International Sustainability Standards Board (ISSB) July Jurisdictional Working Group meeting is now available.

Advocacy and practice development

Institute submission on SFC’s consultation on Proposed Amendments to Enforcement-related Provisions of the SFO

The Institute issued a submission in response to the Consultation Paper issued by the Securities and Futures Commission (SFC) on Proposed Amendments to Enforcement-related Provisions of the Securities and Futures Ordinance (SFO).

In general, we support the SFC’s aims to strengthen protection of the interests of the investing public and uphold the reputation of Hong Kong’s financial markets, including through effective enforcement action. At the same time, in the submission, we raised several questions on the specifics of certain proposals.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

Pre-order offer for Hong Kong Master Tax Guide 2022/23 – 30th edition

Institute members may wish to be informed of a limited time offer to purchase the Hong Kong Master Tax Guide 2022/23 at a greater discount than the standard price reduction enjoyed by members, as indicated below, from now until 26 August 2022 only. (Discounted Price: HK$991/copy - 30% discounted price over the original price of HK$1,380 + delivery charge/copy of HK$25.) Order via the online pre-order form provided by the publisher’s partner firm.

The book covers a wide range of topics including profits tax, salaries tax, summary of board of review cases, objections and appeals, transfer pricing and other tax developments. It also contains worked examples, practical checklists and useful flowcharts.

For any enquiries, please contact Ida Cheung at (852) 2218 3714 or idacheung@bdo.com.hk.

Announcements by the government

Members may wish to be aware of the following matters:

AML notices

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:

3 ways finance is armoring up for a future of disruption from CFO.com
3 ways a downturn can encourage smarter decision-making from Fast Company
4 ways to communicate with more empathy by Harvard Business Review
Cybercrime is big-game hunting now ... you need to be prepared from Financial Management
How to retain talent in audit by ICAEW

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