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Your fortnightly technical updates newsletter (16 August 2023)
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Standard setting
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Institute roundtable on IASB’s Request for information on Post-implementation Review of IFRS 15 Revenue from Contracts with Customers
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The Institute will be holding a virtual roundtable on 13 September to obtain feedback from stakeholders on the International Accounting Standards Board (IASB)’s Request for Information (RFI) on Post-implementation Review (PIR) of International Financial Reporting Standards (IFRS) 15 Revenue from Contracts with Customers. Representatives from the IASB will be present to explain the key areas in the RFI and interact directly with participants at the roundtable. Members and other interested parties are invited to join the roundtable to share their views on the challenges of applying the standard and to provide suggestions to the IASB for its future improvements to IFRS 15. Register to reserve your place by 6 September.
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Video: Overview of the PIR of IFRS 9─Impairment consultation
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In this video, IASB Member Zach Gast explains the RFI on PIR of IFRS 9─Impairment that the IASB published in May 2023. The Institute is seeking comments on the RFI by 18 August.
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IASB July 2023 podcast & update
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The IASB podcast, with its chair, vice-chair and executive technical director highlighting the projects discussed during its July meeting, and a summary of the July meeting, are now available.
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Institute live webinar: Hong Kong Risk-Based Capital - Key concepts and comparison with HKFRS 17
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The Insurance Authority has been developing the Hong Kong Risk-based Capital (HKRBC) regime with a new approach to capital adequacy and regulatory reporting for the insurance industry. The HKRBC is expected to be effective in 2024. The live webinar on 28 September is designed to explain the basic principles of the HKRBC framework, including the three pillars of the HKRBC, the key concepts for measuring the economic balance sheet and available capital, and the various components of prescribed capital requirements. The webinar will also cover a comprehensive analysis of the differences and similarities between the HKRBC technical provisions and the insurance contract liabilities in HKFRS 17 Insurance Contracts.
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Institute live webinar: Classification of liabilities as current or non-current
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The Institute will host a live webinar on 28 September evening to go through two recent amendments to Hong Kong Accounting Standard (HKAS) 1 Presentation of Financial Statements, namely Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants. These two amendments, which will become effective on 1 January 2024, may change the classification of some liabilities from current to non-current, and vice versa, potentially affecting the companies’ compliance with loan covenants. In addition, companies may need to provide new disclosures for liabilities subject to covenants. During the webinar, the speaker will explain these two amendments with illustrative examples and provide a brief update on the IASB’s Primary Financial Statements project.
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Invitation to comment
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The Institute is seeking comments on the International Auditing and Assurance Standards Board (IAASB) Exposure Draft Proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements and Proposed Conforming and Consequential Amendments to Other IAASB Standards by 1 November.
Proposed ISSA 5000 is profession agnostic and is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. Members may be interested in the following resources provided by the IAASB for the proposed standard:
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Live webinar: IAASB’s exposure draft for ISSA 5000, General Requirements for Sustainability Assurance Engagements
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In this webinar, speakers will explain the background, introduce the proposed requirements and discuss any potential issues of the Proposed ISSA 5000 that help facilitate stakeholders to provide comments and respond to the IAASB’s exposure draft.
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Update on IAASB’s projects
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See IAASB’s latest update in its various projects such as audit evidence, audits of financial statements of less complex entities, fraud, listed entities and public interest entities.
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HKICPA resource centre
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Access resources and publications at the Institute’s Resource Centre to the Code which will keep you updated on the latest ethics pronouncements.
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IESBA 2022 Annual Report
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IESBA released its interactive annual report – Reinforcing Ethics and the Public Interest in a Rapidly Evolving World which showcases its 2022 achievements strengthening international ethics and independence standards while pivoting to serve the public interest in emerging areas. The 2022 annual report also features an overview of the IEBSA’s extensive stakeholder outreach efforts and information about its efforts to promote global adoption and effective implementation of the Code of Ethics for Professional Accountants (including International Independence Standards).
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ISSB July 2023 podcast & update
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The International Sustainability Standards Board (ISSB) podcast, with its chair and vice-chair highlighting the recent discussions and decisions made at its July meeting, and a summary of the meeting, are now available.
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Webcast: connections between accounting and sustainability disclosures
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In this webcast, Linda Mezon-Hutter, Vice-Chair of the IASB and Sue Lloyd, Vice-Chair of ISSB discuss progress made in facilitating connections between financial statements and sustainability-related financial disclosures and in the work of the two boards. They also share examples of connected and complementary work between the two boards, which facilitates holistic, comprehensive and coherent information in companies’ financial reports.
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European Commission, EFRAG and ISSB confirm high degree of climate-disclosure alignment
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The European Commission has issued the European Sustainability Reporting Standards (ESRS) which will come into effect in 2024. The European Commission, European Financial Reporting Advisory Group (EFRAG) and the ISSB have worked jointly to improve the interoperability of their respective climate-related disclosure requirements in the overlapping climate disclosure standards.  This has successfully led to a very high degree of alignment, reduced complexity and duplication for entities wishing to apply both the ISSB Standards and ESRS.
To assist entities who will apply both the ISSB Standards and the ESRS, the European Commission together with EFRAG and the ISSB will work on interoperability guidance material that could assist entities in navigating between the standards and to understand where incremental disclosures are required by only one set of standards. Their joint work will also focus on the digital tagging of disclosures as a means of further facilitating interoperability. 
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Advocacy and practice development
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SFC concludes consultation on amendments to enforcement-related provisions of the SFO
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On 8 August, the Securities and Futures Commission (SFC) published conclusions on proposed amendments to enforcement-related provisions of the Securities and Futures Ordinance (SFO). In particular, the SFC will proceed with the proposal to broaden the scope of the SFO’s insider dealing provisions to cover:
- insider dealing perpetrated in Hong Kong with respect to securities listed on overseas stock markets or their derivatives; and
- insider dealing perpetrated outside of Hong Kong, if it involves any securities listed on a recognised stock market, i.e., a stock market operated by the Stock Exchange of Hong Kong Limited, or their derivatives.
The SFC also concluded that due to the complicated legal and practical issues involved, it will put on hold the other two proposed amendments, which concern the professional investor exemption and injunctions and other orders under sections 103 and 213 of the SFO. The Institute also submitted a response to the SFC on this consultation, expressing similar concerns on section 103 of the SFO.
Please refer to the press release for details.
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Opening bank accounts by IPs
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Please refer to the latest list of designated contact points of retail banks for insolvency practitioners (IPs) to enquire about account opening related matters with specific banks.
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Pre-order for Hong Kong Master Tax Guide 2023/24
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Institute members can enjoy a time-limited offer to purchase the Hong Kong Master Tax Guide 2023/24 at the special discounted price indicated below, via the online pre-order form of the publisher’s partner firm, from now on until 30 August 2023.
Discounted Price: HK$1,010/copy (30% discounted from the original price of HK$1,380/copy: HK$966, plus delivery charge/copy: HK$44)
The Guide covers a wide range of topics including profits tax, salaries tax, 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 via email.
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Announcements by the Inland Revenue Department
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Members may wish to be aware of the following matters:
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Announcements by the government
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Members may wish to be aware of the following matters:
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Anti-money laundering (AML) notices and news
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Introduction of “iAM Smart” and “iAM Smart” Sandbox Programme to DNFBPs
On 21 July, a webinar was co-organized by the Office of the Government Chief Information Officer and Cyberport, introducing “iAM Smart” and “iAM Smart” Sandbox Programme for Designated Non-Financial Businesses and Professions, including accountants. A recorded version of the webinar and the presentation slide deck are now available.
The live webinar will also be rerun on 24 August, 3:00 p.m. to 4:00 p.m. Please refer to the invitation letter for details.
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.
Other AML news
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Useful resources
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Publications from other organizations:
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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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