Your fortnightly technical updates newsletter (30 August 2023)

Standard setting

Institute webinars: Audit-cum-accounting training series

The Institute is holding a series of live webinars to discuss the key accounting and auditing considerations on revenue recognition, the assessment of expected credit losses and impairment of non-financial assets. The webinars will also cover the common pitfalls identified through the recent Accounting and Financial Reporting Council inspections.

17 October: Hong Kong Financial Reporting Standard (HKFRS) 15 Revenue from Contracts with Customers
15 November: Hong Kong Accounting Standard (HKAS) 36 Impairment of Assets
20 November: Expected Credit Losses under HKFRS 9 Financial Instruments

IASB sets out accounting requirements for when a currency is not exchangeable

In response to stakeholders’ feedback and concerns about diversity in practice in accounting for a lack of exchangeability between currencies, the International Accounting Standards Board (IASB) has issued amendments to International Accounting Standard (IAS) 21 The Effects of Changes in Foreign Exchange Rates. The amendments will require companies to provide more useful information in their financial statements when a currency cannot be exchanged into another currency.

IASB technical staff have produced a webcast to explain how the new requirements aim to address situations in which a currency is not exchangeable into another currency.

Invitation to comment

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:

Register for the IAASB’s webinar on either 6 September or 7 September on what practitioners and regulators need to know about the Proposed ISSA 5000.

Institute submission

The Institute has submitted its comment letter on the International Auditing and Assurance Standards Board (IAASB) Proposed ISA 570 (Revised 202X), Going Concern and Proposed Conforming and Consequential Amendments to Other ISAs.

Overview of responses to IAASB recent consultations

The Institute’s article in A Plusin provides an overview of the Institute’s responses to the IAASB’s recent consultations on its Proposed Strategy and Work Plan for 2024-2027 and Proposed ISA 500 (Revised), Audit Evidence and Proposed Conforming and Consequential Amendments to Other ISAs.

HKICPA resource centre

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

Ethics recordings

The ICAEW’s ethics recordings provides insight into ethical decision making, speaking up and ethical standards, which will support your professional development.

Institute submission

The Institute has submitted its comment letter on the International Sustainability Standards Board’s Request for Information Consultation on Agenda Priorities.

Advocacy and practice development

Announcements by the Inland Revenue Department (IRD)

Members may wish to be aware of the following matters:

Announcements by the government

Members may wish to be aware of the following matters:

Anti-money laundering (AML) notices and news

Industry update

Ingenique Solutions will organise a live webinar – AML/CTF Compliance in Hong Kong: Latest Developments and Trade-Based Money Laundering on 22 September, which is complimentary for Institute members.

Sanctions update

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 17 August. See the relevant UNSC press release on 16 August.
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

Monetary Authority takes disciplinary action against EFG Bank AG, Hong Kong Branch for contraventions of AMLO

Useful resources

Publications from other organizations:

How to invite AI into the boardroom - And how it will impact governance from Chief Executive
5 steps CFOs should take to mitigate workplace misconduct from CFO.com
3 ways you can actually use AI in your business from Entrepreneur
What accountants need to know about crypto wallets 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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