Standard setting |
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List of new and amended HKFRS |
The Institute has published the list of amended Hong Kong Financial Reporting Standards (HKFRS) that are applicable to December 2022 year-end. |
IASB December 2022 podcast & update |
The International Accounting Standards Board (IASB) podcast, with its chair and executive technical director highlighting the projects discussed during its December meeting, and a summary of the December meeting, are now available. |
IASB Chair Andreas Barckow discusses IFRS 17 becoming effective from 1 January 2023 |
The IASB has published a short video to remind stakeholders that International Financial Reporting Standard (IFRS) 17 Insurance Contracts applies to companies with annual reporting periods beginning on or after 1 January 2023. |
December 2022 IFRS for SMEs Accounting Standard Update |
This edition of the IFRS for SMEs Accounting Standard Update includes:
- frequently asked questions on the proposals in the Exposure Draft (ED) Third edition of the IFRS for SMEs Accounting Standard;
- a list of newly available resources to support the consultation on the ED; and
- guidance on how to get involved in the consultation.
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IASB publishes its review of classification and measurement requirements relating to financial instruments |
The IASB has published its project report and feedback statement concluding the Post-implementation Review (PIR) of the classification and measurement requirements in IFRS 9 Financial Instruments. Feedback from stakeholders and research undertaken as part of the PIR show that the requirements set out in IFRS 9 are working as intended and provide useful information to the users of financial statements. In response to feedback, the IASB has also identified areas for research and standard-setting to further enhance information provided to users of financial statements. |
Call for papers on hedge accounting requirements of financial instruments accounting standard |
The IASB and Accounting & Finance journal have announced a call for research papers on the application and impact of hedge accounting requirements in IFRS 9 and new disclosure requirements in IFRS 7 Financial Instruments: Disclosures related to this. The IASB is seeking evidence about: whether the requirements are working as intended; any important or contentious issues that have come to the attention of the IASB; and any unexpected costs or implementation issues. Papers should be submitted via the online system by 1 September 2023. |
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Invitation to comment |
The Institute is seeking comments on International Auditing and Assurance Standards Board’s (IAASB) Exposure Draft on Proposed International Standard on Auditing (ISA) 500 (Revised), Audit Evidence and proposed conforming and consequential amendments to other ISAs by 24 March 2023. The proposed changes:
- Provide a principles-based approach to considering and making judgments about information intended to be used as audit evidence and evaluating whether sufficient appropriate audit evidence has been obtained;
- Modernize ISA 500 to be adaptable to the current business and audit environment, while considering scalability for different circumstances, including the entity and the auditor’s use of technology, such as automated tools and techniques; and
- Emphasize the role of professional skepticism when making judgments about information intended to be used as audit evidence and evaluating the audit evidence obtained.
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Revised standard on risk assessment for 2022 audits |
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 the approach to risk identification and assessment which will have far-reaching effects for firms of all sizes. The following resources provide tips and support for your implementation of HKSA 315 (Revised 2019):
Online resource centres developed by the Institute and other professional bodies with collections of guidance on HKSA 315 (Revised 2019) and its relevant counterparts:
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The risk identification and assessment process: Tips on implementing ISA 315 (Revised 2019) |
This new implementation tool by the IFAC helps auditors implement ISA 315 (Revised 2019). It provides an overview of core concepts and explains new and previously existing requirements of ISA 315 (Revised 2019). It also includes examples and emphasizes the scalability of the standard with a focus on less complex entities. |
Quality management and group audits: Highlighting certain aspects of interaction between ISA 220 (Revised) and ISA 600 |
This fact sheet focuses on the interactions between ISA 220 (Revised) on quality management at the engagement level and ISA 600 on group audits. It highlights aspects of a group audit that may be affected by ISA 220 (Revised) and International Standard on Quality Management 1. This includes the revised definition of engagement team and leadership and direction, supervision, and review responsibilities. This fact sheet is particularly useful for group audits in which component auditors are involved. |
The Institute’s Auditing and Assurance Standards Committee meeting minutes |
Minutes of the 404th meeting is now available. |
2021 IAASB Handbook |
The 2021 edition of the Handbook of the International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements is now available. It replaces the 2020 edition and incorporates the following that are effective for audits of financial statements for periods beginning on or after 15 December 2021.
- ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement, which replaces ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and Its Environment.
- Conforming and consequential amendments from ISA 315 (Revised 2019) in other relevant standards.
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Exclusive webinar – Audits of less complex entities update |
Register for this live webinar on 16 February 2023 organized by the IFAC, IAASB and the European Federation of Accountants and Auditors for SMEs to learn more on the planned changes to the IAASB’s proposed standard for Audits of Less Complex Entities (ISA for LCE), including changes since the Exposure Draft and the forecasted project timeline. This webinar also provides an opportunity for participants to ask questions. |
IAASB December board meeting |
The meeting summary of the IAASB December board meeting is now available. |
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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. |
Revised non-assurance services and fee-related provisions |
The revised non-assurance services and fee-related provisions of the Code significantly strengthen the guardrails around auditor independence in two important areas that have the potential to create incentives influencing auditor behavior — non-assurance services (NAS) provided to audit clients and fees. The revisions are effective for periods beginning on or after 15 December 2022; otherwise, they are effective as of 15 December 2022. The following resources provide tips and support for your implementation of the revision:
- The Institute’s updated Ethics Circular 1 has incorporated the new and revised NAS provisions aiming at providing guidance to small and medium practitioners including sole practitioners, on their application of the Code to certain NAS and other topical issues.
- The Institute’s e-learning course, titled Revised non-assurance services and fee-related provisions of the Code of Ethics for Professional Accountants provides an overview of the revisions and deeps 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.
The Institute’s Resource Centre to the Code contains resources relating to the revisions, including those from the IESBA. |
The Institute’s Ethics Committee meeting minutes |
Minutes of the 253rd meeting is now available. |
Forthcoming key changes to the IESBA Code |
One of the IFAC’s three strategic objectives is ‘Contributing to and promoting the development, adoption, and implementation of high-quality international standards’. This article summarizes the forthcoming key changes to the International Ethics Standards Board for Accountants (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), focused on those which are coming into effect from 15 December 2022. |
Continuing with the development of global ethics and independence standards for sustainability reporting and assurance |
This publication by the IESBA provides an overview of the sustainability-related decisions made by the Board at its recent meeting and how those decisions will shape the Board’s work in 2023 and beyond, including the following new projects: Sustainability project
- Profession-agnostic independence standards for use by all sustainability assurance practitioners
- Specific ethics provisions relevant to sustainability reporting and assurance
Experts project
- Specific ethics and independence provisions addressing the use of experts by organizations as well as in the context of audit and assurance engagements (including sustainability assurance)
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IESBA November-December board meeting |
The meeting summary of the IESBA November-December board meeting is now available. |
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ISSB announces guidance and reliefs to support Scope 3 GHG emission disclosures |
The International Sustainability Standards Board (ISSB) has set out a series of guidance and reliefs to support those applying the requirement within its Climate-related Disclosures Standard (S2) to disclose Scope 3 GHG emissions when material for a company. The guidance and reliefs are designed to help companies embed and improve their processes for measurement and disclosure of Scope 3 GHG emissions. |
ISSB Update December 2022 |
The ISSB Update provides a summary of discussions at its 13-15 December meeting. Topics discussed include general sustainability-related disclosures, climate-related disclosures and consultation on agenda priorities. |
Inaugural membership of Sustainability Standards Advisory Forum announced |
Thirteen representatives of jurisdictions and regions from around the world will come together to form a Sustainability Standards Advisory Forum (SSAF), that will work with the ISSB towards a comprehensive global baseline of sustainability-related disclosure for capital markets. The SSAF has been established to formalize and streamline the ISSB’s engagement with jurisdictional and regional bodies to ensure that a broad range of national and regional input on major technical issues related to the ISSB’s standard-setting are discussed and considered. The full list of inaugural members can be found in the link above. |
