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News from the Securities and Futures Commission (SFC) |
Noting the recent abrupt market movements linked to the stablecoins, the SFC and the Hong Kong Monetary Authority (HKMA) have issued a joint statement on stablecoin-related market movements. The joint statement urges the public to refrain from making irrational investment decisions based solely on market hype or price momentum, and reminds market participants to exercise responsibility in public communications and refrain from making statements that could mislead or create unrealistic expectations. The statement reiterates the SFC's role of monitoring trading activities in the Hong Kong market and its readiness to act against manipulative or deceptive practices. Read more about the SFC’s expectations on ensuring robust custody of client virtual assets, which is a key objective under Pillar "S" (Safeguard) of the ASPIRe roadmap. The topic is relevant to the current public consultation on minimum standards for virtual asset trading platform operators which will conclude on 29 August. |
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Reminder: Institute live webinars on financial reporting |
Don’t miss the following live webinars specifically tailored for insurers: |
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E-learning: Financial reporting considerations for evolving tariff |
Enrol in the e-learning session designed to help you navigate the complex challenges of tariff changes on various aspects of financial reporting, which include: |
- going concern considerations;
- impairment of non-financial assets;
- recoverability of deferred tax assets;
- assessment of onerous contract;
- inventory valuation; and
- disclosure requirements.
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IAASB video on ISA 570 (Revised 2024) Going Concern |
In this video, Edo Kienhuis, a member of the International Auditing and Assurance Standards Board (IAASB) and Chair of the Going Concern Task Force, explains the key revisions to the ISA 570 (Revised 2024), Going Concern. Topics covered include: |
- The definition of material uncertainty related to going concern;
- Strengthened auditor risk assessment and evaluation of management’s going concern assessment;
- Extension of the assessment period to align with financial statement approval dates;
- Enhanced auditor reporting requirements, including a new going concern section in the auditor’s report; and
- Improved transparency, communication, and professional skepticism throughout the audit process.
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Effective for audits of financial statements for periods beginning on or after 15 December 2026, the revised standard responds to heightened stakeholder expectations and recent global challenges by enhancing auditor responsibilities related to going concern assessments. This update aims to enhance the evaluation of management’s assessment of an entity’s ability to continue as a going concern. For further information, please refer to Handbook Update No. 331, which details the publication of HKSA 570 (Revised 2024) Going Concern Including Conforming and Consequential Amendments to Other Hong Kong Standards on Auditing (HKSAs), equivalent to ISA 570 issued by the IAASB. |
The transformative impact of AI on audit firms and methodologies |
Emerging technologies, such as artificial intelligence (AI), are already reshaping the audit profession. In light of these rapid changes, the auditing profession is considering how to seize new opportunities and prepare for the future of auditing. The IAASB, a co-host of a recent roundtable in Cape Town, South Africa, brought together audit and assurance practitioners, accounting educators and other stakeholders to share insights on the transformative trend. This article summarizes key insights from the discussion on how AI will change audit delivery, including participants’ tips on practical elements of audit methodology, the roll out of technology in a firm, and views on the future. |
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Reminder - IESBA Ethics & Independence Conference 2025 - Ethics and Audit Independence: Pillars of Resilience and Competitiveness in Turbulent Times |
Join international leaders from diverse backgrounds at the IESBA Ethics & Independence Conference on 15 September. The conference will address global trends and explore how ethics and independence can foster trust, resilience, and competitiveness in times of uncertainty. Sessions will explore how the accounting profession, business leaders, and regulators are responding to global challenges, navigating regulatory shifts, embedding ethical culture, adapting to technology and AI, and reinforcing integrity in the fight against financial crime. The event will be available both in person and online. Click here for the full program, list of speakers and registration details. |
HKICPA ethics resource centre |
Access resources and publications at the Institute’s Resource Centre to the Code where you can stay informed about the latest ethics pronouncements. Watch this video to learn how to easily access these valuable resources. |
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HKICPA trainings on sustainability-related topics |
The Institute is committed to enhancing the capabilities of relevant stakeholders by equipping them with the professional knowledge necessary to navigate the dynamic landscape of sustainability. Our technical training sessions are specifically designed to equip our members to apply the Institute’s professional standards to sustainability-related topics: |
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- 3 September: Risk Identification and Assessment
- 17 September: Responding to Risks of Material Misstatement
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E-learning: Sustainability Assurance Series – Overview of HKSSA 5000, General Requirements for Sustainability Assurance Engagements |
Register for the e-learning session that provides a comprehensive overview of the new assurance standard, covering the following key aspects: |
- Fundamental principles and concepts, including limited and reasonable assurance, and firm-level quality management;
- Engagement acceptance and continuance, including preconditions for assurance; and
- Group sustainability assurance engagements and the use of the work of others.
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Additional IAASB implementation support for ISSA 5000 |
The IAASB has released two new resources to further support jurisdictions and stakeholders in adopting and implementing ISSA 5000, General Requirements for Sustainability Assurance Engagements. |
1. Extracts from ISSA 5000 for Limited and Reasonable Assurance Engagements In response to stakeholder requests, the IAASB has prepared reference extracts containing only the material in ISSA 5000 relevant to limited assurance engagements and, separately, reasonable assurance engagements. These extracts are designed to help regulators, standard setters, and other stakeholders more easily identify the requirements and application material most relevant to their jurisdictional decisions. They do not amend or override ISSA 5000, the authoritative text of which remains the full standard. 2. Frequently Asked Questions (FAQ) Document on ISAE 3000 (Revised) and ISAE 3410 The IAASB has published FAQs clarifying that, for jurisdictions adopting IAASB standards, ISAE 3000 (Revised) and ISAE 3410 will no longer apply to sustainability assurance engagements once ISSA 5000 becomes effective in December 2026. These FAQs aim to support a smooth transition and ensure consistent application of the new standard. |
The IAASB will also be launching a new ISSA 5000 webinar series titled ISSA 5000 in Focus in October, which is now open for registration. This series will take participants through ISSA 5000 from engagement acceptance, assessing risks and designing and performing procedures, and finally to concluding and reporting. Each webinar will include an explanation of ISSA 5000 requirements, practical implementation insights, real-world examples, and solutions to common challenges. In addition, the IAASB has updated the adoption information on its website to reflect the growing global momentum towards the adoption of ISSA 5000. |
Join the IFRS Sustainability webinar to learn about the ISSB’s recent consultations |
On 17 September, the IFRS Sustainability Alliance will host a webinar featuring technical staff from the International Sustainability Standards Board (ISSB), who will discuss proposals in two exposure drafts (EDs). |
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The webinar will also cover: |
- how to provide feedback through the online survey (which is designed to be modular, so that stakeholders can respond only to the parts relevant to them); and
- how the industry-based SASB Standards serve as a useful source of guidance for those applying IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.
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Click here to register or watch the on-demand recording later. Please note that the Institute’s public consultation on the two EDs will end on 14 October. |
Disclosing information about anticipated financial effects of sustainability-related risks and opportunities |
In this article, Jenny Bofinger-Schuster, a member of the ISSB, discusses the disclosures of anticipated financial effects of sustainability-related risks and opportunities required by ISSB Standards, as well as their interoperability with the corresponding disclosure requirements in the European Sustainability Reporting Standards (ESRS). The article also introduces new educational material illustrating how companies applying ISSB Standards can disclose anticipated financial effects of their sustainability-related risks and opportunities. |
HKFRS S1 and S2 Implementation Platform |
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 next meeting in November. The deadline for submissions is 21 October. |
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Announcements by the Inland Revenue Department (IRD) |
Members may wish to be aware of the following matters:
- The IRD alerted members of the public to a fraudulent website purportedly to be IRD’s Individual Tax Portal (ITP). The fraudulent website is trying to collect public's login credentials. Please note that the IRD has no connection with the website and it reminded the public to access the ITP through the eTAX services provided in GovHK website or IRD’s official website.
- List of Qualifying Debt Instruments (as at 30 June 2025)
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Implementation of the Integrated Court Case Management System for commercial, construction and arbitration, and intellectual property cases of the High Court |
Following the implementation of integrated Court Case Management System (iCMS) to cover civil appeal cases in the High Court (as announced in Technical News, 2 July 2025 issue), the Judiciary Administrator has issued a further letter to the Institute, advising that the iCMS will soon be extended to cover commercial, construction and arbitration, and intellectual property cases of the High Court. For any questions about the phased implementation of the iCMS, please contact the relevant officials of the Judiciary Administration. |
Announcements by the government |
Members may wish to be aware of the following matters:
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Anti-money laundering (AML) notices and news |
AML notices:
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Other AML news:
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Publications from other organizations: |
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