Your fortnightly technical updates newsletter (14 October 2020)

Standard setting

IFRS Interpretations Committee podcast

The October IFRS Interpretations Committee podcast, highlighting key activities undertaken by the Interpretations Committee to support the consistent application of IFRSs, is now available.

IASB’s second webinar on Discussion Paper Business Combinations – Disclosures, Goodwill and Impairment

On 21 October, the second live webinar by the staff of the International Accounting Standards Board (IASB) on Discussion Paper DP/2020/1 Business Combinations – Disclosures, Goodwill and Impairment will take place. This webinar covers the IASB’s views on improving disclosures about acquisitions.  Members can submit their comments on the paper by 14 November.

Invitation to comment 

The Institute is seeking comments on the International Auditing and Assurance Standards Board (IAASB) Discussion Paper Fraud and Going Concern in an Audit of Financial Statements: Exploring the Differences Between Public Perceptions About the Role of the Auditor and the Auditor’s Responsibilities in a Financial Statement Audit by 11 December.

IAASB September virtual meeting

The meeting summary and audio of the IAASB September virtual meeting is now available.

IAASB auditor reporting post-implementation review 

The IAASB is carrying out a post-implementation review on the Auditor Reporting Standards issued in 2015 and has extended the closing date for interested stakeholders to complete an online survey on their experiences and provide feedback to 23 November.

IAASB Staff Audit Practice Alert on climate-related risks

The IAASB Staff Audit Practice Alert on climate-related risks assists auditors in understanding what already exists in the International Standards on Auditing and how it relates to auditors’ considerations of climate-related risks in an audit of financial statements.

Considerations regarding the use of specialists in the COVID-19 environment

Staff of the American Institute of Certified Public Accountants (AICPA), the International Ethics Standards Board for Accountants (IESBA) and the IAASB jointly releases a publication to assist professional accountants to determine the need to use the services of a specialist to assist in performing specific tasks and other professional activities in the COVID-19 environment.

Invitation to comment 

The Institute has extended the comment period for Exposure Draft of Code of Ethics for Professional Accountants – Chapter G Section 100 Professional Ethics Relevant to Anti-Money Laundering and Counter-Terrorist Financing Compliance for Accounting Professionals until 20 October. This is a component of the Institute’s proposal to enhance the risk-based supervision of accounting professionals concerning anti-money laundering and counter-terrorist financing compliance.

To facilitate members’ understanding, a video to explain the Exposure Draft has been produced and uploaded to the website.

IESBA September–October virtual meeting

The meeting summary and audio of the IESBA September–October virtual meeting is now available.

lFAC Exploring the IESBA Code 10: Inducements

Pressures that threaten compliance with the fundamental principles (FPs) in the International Code of Ethics for Professional Accountants (Including International Independence Standards) are often due to an intimidation threat. This tenth instalment of Exploring the IESBA Code explores pressure that might result in a breach of the FPs and how to deal with it.

Consultation Paper on Sustainability Reporting 

The IFRS Foundation issued a Consultation Paper on Sustainability Reporting on 30 September. The Institute is seeking comments on this Consultation paper by 30 November.

IFRS Foundation Trustee Teresa Ko discusses the Consultation Paper in a recent article published by the IFRS Foundation.

Advocacy and practice development

Submission

The Institute issued a submission in response to the consultation paper issued by the Stock Exchange of Hong Kong Limited (HKEX) on Review of Listing Rules Relating to Disciplinary Powers and Sanctions.

The Institute’s Corporate Finance Advisory Panel (CFAP), in principle, supports the introduction of more effective and graduated disciplinary and sanctioning powers by the HKEX. However, the CFAP has concerns about the implications of some of the proposals to lower or remove thresholds for taking disciplinary action, and also about the extent to which the “Relevant Parties” subject to disciplinary actions and sanctions will be expanded to professional advisers, under a form of “secondary liability”.

Announcements by the Inland Revenue Department 

Members may wish to be aware of the following matters:

• Notify IRD promptly of change of address
• Country-by-Country Return XML Schema (version 2.0) and User Guide
• Financial Account Information Return XML Schema and User Guide
• Hong Kong-Georgia comprehensive avoidance of double taxation agreement
• Stamp Duty statistics

AML notices

The updated list of terrorists and terrorist associates designated by the United Nations Security Council (UNSC) was gazetted on 9 October pursuant to the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575). See the related UNSC press release.

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.

Useful resources

Publications from other organizations:

• Global Economic Outlook Report: Trade outlook weaker in post-virus global economy by ICAEW
• The CFO of the future by Institute of Management Accountants
• The global pandemic doesn’t have to halt your global growth strategy from Fast Company
• Financial crime during a recession: Key lessons for finance leaders from Financial Management
• Covid-19 Is rewriting the rules of corporate governance from Harvard Business Review
• 3 Reasons investing in employee resilience pays off from Entrepreneur
• The New Normal Law Guide 2020 (free for download) by LexisNexis

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