Your fortnightly technical updates newsletter (21 September 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.

Standard setting

Invitation to comment

The Institute is seeking comments on the International Accounting Standards Board (IASB) exposure draft Third edition of the IFRS for SMEs Accounting Standard by 16 January 2023.

Live webinar: HKAS 36 Impairment of Assets

Impairment assessment is one of the key elements of the financial reporting process as well as common review area of regulators. It is likely that companies are facing more uncertainties in the current economic environment, with some sectors being more affected than others. The live webinar on 9 December will cover the following:

common pitfalls of Hong Kong Accounting Standard (HKAS) 36, including identification of cash generating units, deriving discount rates and related cash flow projections, comparable recoverable amount and carrying amount, identification of impairment indicators and related disclosures;
how to deal with corporate assets, especially leased offices and other material right-of-use assets that are corporate assets;
considerations for impairment assessment of goodwill, particularly the allocation of goodwill to appropriate testing level and the frequency of assessment; and
practical tips in preparing / reviewing valuation assumptions and models.

Workshop for new auditors (re-run)

The three-day workshop on 11, 13 and 18 October is a tailor-made programme that provides the core concepts and practical skills essential for new auditors of financial statement audits. It applies an interactive learning format through discussions, case studies and role-play. Speakers will teach auditing concepts and practical skills, as well as share their experience relevant to new auditors.

Workshop on audit of licensed corporation

The workshop on 17 November will provide an introduction to audit of licensed corporations which are regulated by the Securities and Futures Commission. Topics include:

Overview of the Securities and Futures Ordinance requirements
Highlights and reminders on HKICPA Practice Note 820 (Revised), The Audit of Licensed Corporations and Associated Entities of Intermediaries
Latest Securities and Futures (Financial Resources) Rules for the preparation of financial returns
Sharing of key future developments in rules and regulations relevant to audit

Revisions to Auditing and Assurance Technical Bulletin

The Institute has revised AATB 3, Implementation Guidance on Revised Hong Kong Standard on Investment Circular Reporting Engagements (HKSIR) 400 Comfort Letters and Due Diligence Meetings to provide guidance to assist reporting accountants to determine whether an engagement in accordance with HKSIR 400 (Revised) is appropriate with respect to an issuer’s transaction. A marked-up version identifying the amendments to AATB 3 is also available.

The Institute’s Auditing and Assurance Standards Committee meeting minutes

Minutes of the 402nd meeting is now available.

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:

Audit & Beyond September 2022 provides tips on taking an efficient and ISA-compliant route to journals testing; how technology can support improvements in both audit quality and efficiency; some familiar questions that come around again and again.
An online webinar on hot topics and tips for 2023 audits with current topical issues and areas for improvement.
Resources to help audit firms prepare for the new and revised quality management standards.
Resources and support tools on auditing accounting estimates under ISA 540 (Revised), such as webcasts and articles with practical illustrations.
Summary of links to technical help, webinars, publications and events to all stages of an audit.

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.

The Institute’s Ethics Committee meeting minutes

Minutes of the 251st meeting is now available.

IESBA Handbook 2022 edition

The 2022 edition of the Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards) is now available. It replaces the 2021 edition and incorporates the following revisions that will become effective in December 2022:

The revisions to the non-assurance services and fee-related provisions of the Code.
The revisions to address the objectivity of an engagement quality reviewer and other appropriate reviewers.
The quality management-related conforming amendments to the Code that were issued as a result of the finalization of the International Auditing and Assurance Standards Board’s (IAASB) suite of quality management standards.

Advocacy and practice development

Announcements by the Inland Revenue Department (IRD)

Members may wish to be aware of the following matters:

External webinar – An overview of stamp duty on property transactions

The Estate Agents Authority (EAA) will organize a webinar co-hosted by the Taxation Faculty (TF), on 29 November 2022 (3 p.m. to 5 p.m.), to provide EAA licensees with an overview of stamp duty on Hong Kong property transactions. The speaker, who is a member of TF’s Budget Proposals Sub-committee, will discuss the application and calculation of ad valorem stamp duty, Special Stamp Duty and Buyer’s Stamp Duty.

HKICPA and TF members can join for free on a first-come-first-served basis via this link. However, as the Institute is not the principal organizer, CPD hours cannot be offered for this event. The application deadline is 18 November 2022 and the webinar will be conducted in Cantonese. For more details, please click here for the event flyer.

Announcements by the government

Members may wish to be aware of the following matters:

AML notices

The List of individuals and entities published under section 31 of the United Nations Sanctions (Democratic People's Republic of Korea) Regulation (Cap.537AE) was updated on 15 September 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:

How finance and IT can collaborate for growth from CFO.com
5 steps to a digitalised reporting dashboard from Financial Management
High-performing teams don’t leave relationships to chance from Harvard Business Review
Why the cloud is key to a flexible, intuitive practice by ICAEW
How to attract the Gen Z talent pool from In the Black

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.

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