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Handbook Update No. 347 contains the following update to Volume II of the Members’ Handbook:
(i) The following new and revised accounting standards and amendments, effective for annual reporting periods beginning on or after 1 January 2027, were previously included in Section 2. The consequential amendments arising from these pronouncements have now been incorporated into the relevant HKFRS Accounting Standards, Basis for Conclusions and Implementation Guidance in Section 2:
(ii) Certain HKFRS Accounting Standards, which have incorporated relevant amendments effective for annual reporting periods beginning on or after 1 January 2026, are now relocated from Section 2 to Section 1.
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The Institute is seeking comments by 31 July on the following IFRS Interpretations Committee’s tentative agenda decisions:
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Institute’s resources to support the implementation of HKFRS 18
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As the implementation of HKFRS 18 Presentation and Disclosure in Financial Statements progresses, the Institute remains committed to supporting members with practical resources, including the following:
This issue focuses on how HKFRS 18 applies to banks and insurers, highlighting:
- Key impacts on the structure of the statement of profit or loss
- Illustrative statements of profit or loss for banks and insurers
- Examples of financial measures used by banks and insurers, and considerations for identifying MPMs
This webcast provides a practical walkthrough of the five categories, the two new mandatory subtotals, practical steps for preparers, and a before-and-after illustration of the statement of profit or loss.
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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) applicable to accounting periods beginning on or after 1 January 2026.
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IASB issues amendments clarifying the fair value option in IAS 28
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The International Accounting Standards Board (IASB) issued targeted amendments to clarify which investments in associates and joint ventures a company is eligible to measure using the fair value option under IAS 28 Investments in Associates and Joint Ventures, with the amendments taking effect when a company first applies IFRS 18.
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IASB June 2026 Update & podcast
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The IASB Update highlights the preliminary decisions from its June meeting, and the accompanying podcast highlights the meeting, including discussions on Equity Method, Provisions—Targeted Improvements, Post-implementation Review of IFRS 16 Leases, and Presentation of Non-income Taxes.
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IFRS Interpretations Committee June 2026 Update
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The IFRS Interpretations Committee Update provides a summary of discussions at its June 2026 meeting.
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HKICPA Audit Guide: Digital Assets
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The Institute published the Audit Guide: Digital Assets. This non-authoritative guide assists auditors in identifying and addressing common issues in audits of entities engaged in digital asset activities, including cryptocurrencies, stablecoins and security tokens. It synthesizes regulatory inspection findings across jurisdictions, guidance from regulatory and professional bodies, and emerging audit practices into a structured, phase-by-phase guidance.
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Reminder: HKICPA auditing webinar: HKSA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
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Join the webinar on 23 July for a focused and practical overview of HKSA 240 (Revised). Key discussions will include the standard’s key requirements and revisions, implications for audits, and common pitfalls and areas for improvement.
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The Institute has submitted its comments on the International Ethics Standards Board for Accountants’ (IESBA) Survey for Post-Implementation Review of the Restructured Code.
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IESBA podcast on decoding ethics “Building Trust in AI: Why Governance Matters More Than Speed”
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In this podcast, IESBA technical staff explores why leading companies are embedding governance directly into workflows, why accountability matters as AI systems coordinate across teams and decisions, and why the long-term competitive advantage belongs to those who can balance speed with strong governance.
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IESBA video on the role of the CFO
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In this video, an IESBA Member reflects on the realities CFOs are navigating today, from expanding responsibilities beyond finance to the growing complexity of ethical decision-making.
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ISSA 5000 Frequently Asked Questions: The Application of Materiality
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The International Auditing and Assurance Standards Board released a new FAQ publication to support implementation of the International Standard on Sustainability Assurance 5000 General Requirements for Sustainability Assurance Engagements. The FAQs focus on materiality in sustainability assurance engagements and are intended to promote consistent understanding and effective application of the concept under ISSA 5000.
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ISSB June 2026 podcast & update
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In this podcast, the International Sustainability Standards Board (ISSB) Chair and Vice-Chair highlight key takeaways from June’s board week, focusing on the proposed way forward for nature-related disclosures and insights from recent engagements, and discuss progress in the use of ISSB Standards around the world. In addition, a summary of the June 2026 meeting is now available.
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Q2 2026 ISSB implementation insights podcast
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The ISSB podcast features its vice-chair and technical staff discussing the latest resources available to support companies in applying ISSB Standards, the requirements for companies to disclose information about biogenic emissions, and the work of the GHG Protocol.
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ISSB nature-related disclosure proposals
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ISSB Vice-Chair outlined the ISSB’s proposed Practice Statement on nature-related disclosures, with an Exposure Draft targeted for publication in October 2026. Key decisions include using the Practice Statement together with IFRS S1 and IFRS S2, making it a tool companies can choose to use when providing nature-related information to investors, and drawing on the TNFD framework to develop the proposals.
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HKFRS S1 and S2 implementation platform
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You are welcome to submit technical questions related to the implementation of HKFRS S1 and S2. Questions that meet the submission criteria will be considered for discussion at the upcoming meeting.
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Members may wish to be aware of the following matters:
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Announcements by the Inland Revenue Department (IRD)
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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/ Counter-terrorist financing (AML/CFT) notices and news
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FATF publication on high-risk and other monitored jurisdictions
On 19 June, the Financial Action Task Force (FATF) published a statement on high-risk jurisdictions subject to a call for action, calling on its members and all jurisdictions to apply specific measures and actions against Iran, the Democratic People's Republic of Korea and Myanmar.
The FATF also issued a notice on jurisdictions under increased monitoring, identifying other jurisdictions with strategic deficiencies in their AML/ counter-terrorist regimes and working with the FATF to address them. The FATF generally calls for a risk-based approach, rather than enhanced due diligence for these jurisdictions. The full list of such jurisdictions and their current status can be found in the FATF notice.
AML/CFT 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.
Revised FAQs on Suspicious Transaction Reporting
- Members are reminded that the Institute issued a revised Frequently Asked Questions (FAQs) on Suspicious Transaction Reporting, in collaboration with the Accounting and Financial Reporting Council, and with valuable input from the Joint Financial Intelligence Unit. The updated FAQs provide clear and practical guidance on common issues encountered by CPA practices and Institute members, helping them better understand and fulfil their legal obligations while meeting regulatory expectations.
Other AML/CFT news
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Publications from other organizations:
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Disclaimer: Some sections contain external links and information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy or content of the external site, and the content does not necessarily represent the views of the Institute. We recommend using your discretion when visiting these links.
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Copyright © 2026 Hong Kong Institute of CPAs. All rights reserved.
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