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Standard setting
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Live webinar: Amendments to HKAS 1 Presentation of Financial Statements
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The classification of liabilities as current or non-current has been a commonly seen accounting issue for many years. In response to stakeholders’ request for clarification on the application of the classification principle under International Accounting Standards (IAS) 1, the International Accounting Standards Board (IASB) issued amendments to IAS 1 in January 2020 and is going to issue further clarifications to provide guidance on aspects of the classification principle.
The live webinar on 23 November evening will go through both recent and upcoming relevant amendments to Hong Kong Accounting Standards (HKAS) 1 which may affect the presentation of liabilities in the statement of financial position. During the webinar, speakers will also share with participants the recent amendments relating to the disclosure of accounting policies in financial statements, as well as common issues on presentation and disclosures of financial statements.
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Live webinar: 2022 Update on IFRS Interpretations Committee Agenda Decisions
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The Institute will host a live webinar on 14 December evening to cover several International Financial Reporting Standards (IFRS) Interpretations Committee agenda decisions/tentative agenda decisions which were discussed and/or finalized in 2022 and may have wider implications in Hong Kong. During the webinar, speakers will explain how the applicable principles and requirements in the IFRS Accounting Standards apply to specific fact patterns.
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List of new and amended HKFRS
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The Institute has published the list of amended Hong Kong Financial Reporting Standards (HKFRS) that are applicable to accounting periods beginning on or after 1 January 2022.
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IASB September 2022 podcast
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In this podcast, IASB Chair Andreas Barckow and Executive Technical Director Nili Shah talk through the highlights from the September 2022 IASB meeting. Topics discussed include goodwill and impairment, financial instruments with characteristics of equity, rate-regulated activities, primary financial statements and equity method.
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IASB webinar on Primary Financial Statements project
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This webinar provides the latest updates on the IASB’s Primary Financial Statements project, including on the IASB’s tentative decisions up to September 2022.
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IASB webcasts on Dynamic Risk Management project
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IASB technical staff have produced a series of eight webcasts to explain the Dynamic Risk Management project based on the IASB’s tentative decisions to date. The project’s aim is to get companies to reflect better in their financial statements how interest rate risk management affects the amount, timing and uncertainty of future cash flows.
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IFRS Foundation’s World Standard-setters Conference 2022: a summary
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The IFRS Foundation has published a summary of its World Standard-setters Conference which was held on 26-27 September 2022. The summary includes updates from both the IASB and the International Sustainability Standards Board (ISSB).
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Workshops and webinars on auditing and assurance
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Don’t miss the following training opportunities in November and December:
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Implementing your system of quality management by 15 December 2022
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In less than two-month time, firms will be required to have design and implement a system of quality management (SOQM) that complies with Hong Kong Standard on Quality Management (HKSQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements which will be effective from 15 December 2022.
Below is a list of resources that helps firms to implement the new and revised quality management requirements:
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- The Institute’s Quality Management Manual offers steps firms need to take to implement the new requirements. Among others, it comprises a pre-populated Risk Assessment Tool with over 100 examples of risks for firms to customize and add their own risks based on their assessment and circumstances.
- The Institute’s E-Learning: Quality Management Standards Series highlights the key requirements and provides practical applications and illustrated examples on how small and medium practitioners can meet the new requirements.
- The Institute’s Alert: Getting Ready for the Quality Management Standards provides the following tips and practical examples for firms to get started with the implementation:
- Online resource centres developed by the Institute and other professional bodies with collection of guidance to the quality management standard:
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Revised standard on risk assessment for 2022 audits
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Hong Kong Standard on Auditing (HKSA) 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement is effective for audits of financial statements for periods beginning on or after 15 December 2021. It introduces major changes in approach to risk identification and assessment which will have far-reaching effects for firms of all sizes.
The following resources provide tips and support to your implementation of HKSA 315 (Revised 2019):
- The Institute’s Audit Practice Manual (2022 edition) addresses the new and revised requirements of HKSA 315 (Revised 2019). Guidance notes, audit programmes and checklists, and the example audit engagement file accompanying the manual has also been updated for the latest auditing, financial reporting and other relevant disclosure requirements.
- The Institute’s E-learning on HKSA 315 (Revised 2019) provides a deep dive on the new and revised requirements and discusses their implementation on auditing.
- The Institute’s HKSA 315 (Revised 2019) resource centre contains pronouncements, guides and articles that are relevant to HKSA 315 (Revised 2019).
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HKICPA resource centre
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Access resources and publications at the Institute’s revamped Resource Centre to the Code which will keep you updated on the latest ethics pronouncements.
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Ethics article on responding to NOCLAR by PAIBs
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The Institute has published an article exploring the responsibilities of professional accountants in business (PAIBs) to respond to non-compliance with laws and regulations (NOCLAR) in accordance with the response framework set out in the Code of Ethics for Professional Accountants (Code) with illustrative scenarios applicable to PAIBs.
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Revised Non-Assurance Services and Fee-Related Provisions of the Code of Ethics for Professional Accountants
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In June 2021, the Institute released revisions to the non-assurance services (NAS) and fee-related provisions of the Code. The revisions significantly strengthen the guardrails around auditor independence in two areas, NAS provided to audit clients and fees, that have the potential to create incentives influencing auditor behavior. The revisions will be effective for periods beginning on or after 15 December 2022; otherwise, they will be effective as of 15 December 2022.
Don’t miss the Institute’s E-learning: Revised Non-Assurance Services and Fee-Related Provisions of the Code of Ethics for Professional Accountants which provides an overview of the revisions and deep dives into areas such as the new self-review threat prohibition for public interest entities audit clients; self-interest threats created by fees paid by an audit client; strengthened provisions regarding relative size of fees to the firm from a particular audit client, etc.
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G7 reiterates commitment to mandatory climate disclosures and welcomes the ISSB’s work on global baseline
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The G7 Finance Ministers and Central Bank Governors have issued a statement on climate issues in which they reiterate their commitment to move towards mandatory climate-related financial disclosures and welcome the ISSB’s work to develop a truly global baseline of sustainability disclosures to inform investment decisions.
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