NAVIGATION

A ROADMAP OF AN AUDIT ENGAGEMENT

The Institute specially designed the resource A Roadmap of an Audit Engagement, which outlines the essential steps of an audit engagement journey. The resource highlights relevant technical resources offered by the Institute and other professional bodies that correspond to the key inspection findings related to the application of auditing and accounting standards identified by the Accounting and Financial Reporting Council (AFRC) in their inspection reports.

A collection of technical resources and publications are also available at the Institute’s Auditing and Assurance Resource Centre which will keep you updated on the latest auditing and assurance pronouncements.

Invitation to comment

The Institute is seeking comments on the International Accounting Standards Board (IASB) Exposure Draft (ED) Contracts for Renewable Electricity - Proposed amendments to International Financial Reporting Standard (IFRS) 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures by 5 July.

IASB simplifies financial reporting for eligible subsidiary companies with new IFRS Accounting Standard

The IASB has issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 Subsidiaries without Public Accountability: Disclosures permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements. Subsidiaries are eligible to apply IFRS 19 if they do not have public accountability and their parent company applies IFRS Accounting Standards in their consolidated financial statements. 

Webcast series: Proposals in Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment

In this webcast series, IASB members and technical staff take a detailed look into the proposed improvements to the disclosure requirements about acquisitions and the impairment testing of cash-generating units containing goodwill.

Your views on evolving the IFRS Foundation’s digital offering

The IFRS Foundation is exploring options for introducing an epub service, which is expected to build on other digital offerings on its website, including the Standards Navigator and the IFRS Sustainability Knowledge Hub. Participate in the survey to provide your views on its current service, as well as possible new products and their features.

Circular on Reporting under Rule 4.2 and Rule 4.4 relating to Net Asset Requirement and Rule 4.6 relating to Investment Requirements of the New Capital Investment Entrant Scheme

The Institute's recently released circular provides guidance to practitioners who are engaged to report on applicants’ fulfilment of certain requirements under the New Capital Investment Entrant Scheme of the HKSAR Government.

IAASB technical resources

The International Audit and Assurance Standards Board (IAASB) has recently released the following resources:

• A video series supporting the understanding of the new International Standard on Auditing for Less Complex Entities (ISA for LCE)

• A video series exploring the proposed changes to the fraud standard

• IAASB’s strategy and work plan for 2024-2027

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:

• Ways to enhance audit sampling highlights some good practices and pitfalls for smaller firms to consider.
• The webinar recording "Making sense of sampling and substantive analytical review" explores robust sampling and effective substantive analytical procedures in the context of revised ISA 315.
• The webinar recording "ISA 315: Putting the building blocks together" focuses on the audit response to the application of the new ISA.
• The webinar recording "ISA 600 – what’s changing" shares some practical insights on the new standard on group audit.

If you are interested in accessing the ICAEW online audit and assurance resources, please contact Member Engagement Department at me@hkicpa.org.hk for free enrolment on a first-come, first-served basis. Limited spots available. Please note that your name and email address will be shared with the ICAEW for communication purposes.

Institute submission

The Institute has submitted its comment letter on the International Ethics Standards Board for Accountants (IESBA) Exposure Draft Proposed International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting.

Webinars on the global ethics standards on tax planning

Watch the webinar recording for the recently released ethics standards on tax planning and related services which will be effective for tax planning activities or tax planning services beginning after 30 June 2025. These standards establish a comprehensive ethical framework to guide professional accountants when providing tax planning and related services. The framework stipulates the expected mindset and behaviors of professional accountants when they recommend or otherwise advise on tax planning arrangements to employing organizations or clients.

To learn more about the standards, visit the IESBA's designated webpage to explore the various resources available, including an infographic developed by the IESBA.

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.

Reminder: Institute live webinar: Dive deeper with a focus on IFRS S2

Don’t miss the Institute’s live webinar on 20 June which will delve into the key aspects of IFRS S2 Climate-related Disclosures, including scenario analysis, anticipated financial effects, GHG emissions, proportionality mechanisms and transition reliefs.

ISSB Standards now available in Simplified Chinese

The IFRS Foundation has published the Simplified Chinese translation of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, as well as the accompanying documents.

Webcast: Introducing the ISSB Taxonomy

In this webcast, International Sustainability Standards Board (ISSB) Vice-Chair and ISSB technical staff introduce the ISSB Taxonomy, its key features and the benefits for investors, companies and regulators.

Public consultation on a VCoC for ESG ratings and data products providers

On 17 May, a public consultation on a voluntary code of conduct (VCoC) for environmental, social and governance (ESG) ratings and data products providers providing products and services in Hong Kong was launched by the Hong Kong ESG Ratings and Data Products Providers VCoC Working Group, which is led by the International Capital Market Association.

The submission deadline is 17 June. Please refer to the press release for details.

Announcements by the Inland Revenue Department (IRD)

Members may wish to be aware of the following matters:

• IRD Notice - File Your Tax Return on Time 
• IRD Notice - Tax Obligations of Taxpayers and Employers 
• List of Qualifying Debt Instruments (as at the end of 31 March 2024)
• Stamp Duty statistics

Annual meeting with the IRD

The annual meeting between representatives of the Institute's Taxation Faculty Executive Committee and the IRD took place on 17 May, where a number of current issues in tax administration were discussed. Detailed minutes of the meeting will be made available in due course. At the meeting, the IRD also confirmed the extended due dates for lodging profits tax returns for the year of assessment 2023/24. These are: 

The meeting minutes of the previous annual meetings are available on the Institute’s website. Please click here for more details.

Announcements by the government 

Members may wish to be aware of the following matters:

• Government announces calendar of mega events in Hong Kong (second half of 2024)
• Senior Government Appointments
• Arrangements for Registration of Persons services and for Travel Document services after relocation of Immigration Headquarters
• 31 May deadline for lodging proposals to alter rateable values
• Swap Connect enhancements to advance high-quality opening-up of China's financial markets

Anti-money laundering (AML) notices and news

AML workshops

The coming AML workshops (in Cantonese) will cover the latest updates and practical guidance for complying with AML/CFT requirements. Part I will be held on 4 June, followed by Part II on 26 June. 

Anti-Money Laundering and Counter-Terrorist Financing Series - Latest updates and practical guidance on implementing AML/ CFT requirements (re-run)
CPD hour: 4 I 4 & 26 June

Industry update

Institute members can enjoy the complimentary live webinar themed, Navigating AML/CTF Compliance: Practical Implementation Guide and Real-Life Case Sharing. The event is organized by Ingenique Solutions, one of the screening service providers offering discounts to Institute members, and will be held on 28 May.

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.

Publications from other organizations:

• 5 ways solopreneurs can scale their business through collaboration from Entrepreneur.com
• Social mobility: the journey starts with action from Financial Management
• 75% of employees use AI at work: report from CFO.com
• More than 4 in 5 large companies still offer flexible work model from Journal of Accountancy

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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