NAVIGATION

Seminar: IESBA Perspectives on Sustainability Ethics and Firm Culture & Governance

In early 2025, the International Ethics Standards Board for Accountants (IESBA) issued the International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and the revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the IESBA Code). These standards address critical risks to the integrity, quality and effectiveness of sustainability reporting and assurance.

Meanwhile, the Firm Culture and Governance Project aims to develop a culture and governance framework that promotes, supports and reinforces a high standard of ethical behavior by a firm's leadership, other partners, and staff across all of the firm’s services, helping the firm develop a reputation as a highly ethical firm, mitigate the risks of unethical behavior and strengthen public trust and confidence in all of its services.

In the seminar on 11 November, the Deputy Chair of the IESBA will delve into:

Background to the development of ethics and independence standards for sustainability;
Key requirements of the ethics standards for sustainability reporting and assurance standards, and the use of external experts; and
The state of play for the Firm Culture and Governance project.

Institute submission

The Institute has submitted its comment letter on the International Accounting Standards Board (IASB) Request for Information Post-implementation Review of IFRS 16 Leases.

Institute Virtual Conference: Annual Accounting and Sustainability Update 2025: Shedding light on evolving complexities

The growing complexities and uncertainties in today's business world are impacting various sectors. Recently, global tariff measures, evolving climate risks, and the development of various digital assets along with their regulatory regimes have become popular discussion topics. These developments are likely to complicate financial reporting for many entities. Join us at the Annual Accounting and Sustainability Update Conference on 22 November to learn how to navigate these uncertainties.

Topics covered include:

HKFRSs amendments that are effective for 2025 and beyond;
Application issues of HKFRSs and common pitfalls identified through the recent regulators’ inspections;
Emerging topics for financial reporting - global tariffs, virtual assets, and climate related and other uncertainties; and
Update on recent developments in sustainability reporting, including the exposure drafts on amendments to the IFRS Sustainability Disclosure Standards.

Reminder: Upcoming live webinars on financial reporting

Join the upcoming live webinars to stay informed about the latest developments in financial reporting standards and to help you prepare for the year-end closing of 2025.

17 November: Tackling common financial reporting issues for financial instruments
26 November: Navigating the accounting for the abolition of the MPF-LSP offsetting mechanism and related subsidy scheme
4 December: HKFRS 18 In Focus: What insurers and other financial institutions need to know

New educational material to support implementation of the IFRS for SMEs Accounting Standard

To support SMEs in applying the third edition of the IFRS for SMEs Accounting Standard, the IFRS Foundation has published an educational module and an overview webcast for the new Section 12 Fair Value Measurement.

The updated module is also relevant for entities applying the revised HKFRS for Private Entities Accounting Standard, issued by the Institute in April, which is equivalent to the third edition of the IFRS for SMEs Accounting Standard published by the IASB.

Industry specific webinars in November

Register now to receive updates and insights on the following topics:

Industry update relating to licensed corporations (12 November): Speakers from the Securities and Futures Commission will discuss the regulatory framework for centralized virtual asset trading platforms and the proposed regulatory frameworks for virtual asset dealers and custodians. They will also provide an overview of the consultation on draft amendments to the Securities and Futures (Financial Resources) Rules (FRR) and related guidelines for implementing a set of internationally comparable capital requirements for licensed corporations (LCs) engaged in over-the-counter derivative activities (OTCD capital requirements).

Industry update relating to investment funds (24 November): This session will feature insights from speakers at the Securities and Futures Commission and the Mandatory Provident Fund Schemes Authority. They will provide an overview of the proposed amendments to the Code on Unit Trusts and Mutual Funds, updates on the eMPF Platform, and a discussion of the audits of MPF schemes and investment funds.

An overview of the status of IAASB projects

During its September meeting, the International Auditing and Assurance Standards Board (IAASB) made important decisions across various projects. This quick overview provides an update for each project stands and next steps. For further information, visit their designated webpage.

Kick-off statement by the IAASB Chair at the IESBA Conference 2025

Kicking off the panel on The Future of Technology in Audit and Accounting at the IESBA Conference 2025, the IAASB Chair, Tom Seidenstein reflected on how emerging technologies are transforming audit and assurance. Acknowledging both the risks and opportunities that technological evolution presents, he emphasized the enormous opportunities for enhancing audit quality and trust. He also highlighted how the IAASB is responding by integrating technology into standard setting, fostering responsible innovation, and collaborating with the IESBA to address ethical considerations.

The Institute’s Auditing and Assurance Standards Committee meeting

Minutes of the 427th meeting are now available.

IESBA Conference 2025 videos and speeches

The videos and speeches for the IESBA Conference 2025 are now available. Throughout the conference, speakers and participants explored the pressures facing organizations today, including regulatory pushback, accelerating technology, and evolving expectations for transparency and accountability. In this context, discussions highlighted how ethics and independence remain essential anchors, providing a foundation for trust, a compass for responsible innovation, and a stabilizing force amid uncertainty.

IESBA Handbook 2025 edition

The IESBA released the 2025 Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards), which includes:

The back of Volume 1 of the 2025 Handbook features the IESBA-approved revisions to the Code addressing Using the Work of an External Expert as well as Sustainability Reporting-related Revisions. These revisions will become effective in December 2026.
The new Volume 2 of the IESBA Handbook contains the International Ethics Standards for Sustainability Assurance (including Independence Standards) and Other Revisions to the Code Relating to Sustainability Assurance, as well as the provisions addressing Using the Work of an External Expert. These provisions will become effective in December 2026, except for certain independence provisions relating to value chain, which will take effect in July 2028.

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.

E-learnings: archived webinars from the Sustainability Assurance Series

In March 2025, the Institute issued HKSSA 5000, General Requirements for Sustainability Assurance Engagements. This landmark standard marks a significant step forward in strengthening confidence and trust in sustainability information among intended users in Hong Kong. HKSSA 5000 provides a robust framework for performing high-quality sustainability assurance engagements.

HKSSA 5000 will be effective for assurance engagements on sustainability information reported for periods beginning on or after 15 December 2026, or as at a specific date on or after 15 December 2026. Earlier application is permitted.

To support this initiative, the Institute hosted a series of training sessions covering different aspects of HKSSA 5000. These sessions have been archived for member access. Enrol now if you missed any of these webinars.

Overview of HKSSA 5000;
Groups Sustainability Assurance Engagements;
Risk Identification and Assessment; and
Responding to Risks of Material Misstatement.

What to expect at this year's IFRS Sustainability Symposium?

In this video, International Sustainability Standards Board (ISSB) Chair Emmanuel Faber and Vice-Chair Sue Lloyd discuss the highlights of the upcoming IFRS Sustainability Symposium on 30 October.

The complete agenda for the Symposium is now available. Join the Symposium to connect directly with ISSB members, technical experts and industry leaders under one roof. The ‘Pathways to adoption’ programme features keynotes, panels and breakout sessions designed to equip you with the tools and insights necessary to put ISSB Standards into practice.

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 upcoming meeting.

Announcements by the Hong Kong Exchanges and Clearing Limited (HKEX)

The HKEX has published a circular on the Introduction of Hang Seng Biotech Index Futures, tentatively set for launch on 28 November 2025. The new futures contracts are based on the Hang Seng Biotech Index which tracks the performance of the 30 largest southbound Stock Connect-eligible biotech, pharmaceuticals and medical devices companies listed in Hong Kong. The HKEX has noted that the new futures contracts will expand investor access to the sector’s potential and provide a robust hedging tool, contributing to the development of the region’s biotech ecosystem.

Announcements by the Securities and Futures Commission (SFC)

On 13 October, the SFC launched the REIT Channel, which facilitates the authorization of public offering applications by new real estate investment trusts (REITs) and provides a dedicated channel for REIT applicants to consult the SFC in confidence about their applications. The SFC has also streamlined the process and documentary requirements for authorizing REITs, expecting that decisions on authorization applications could normally be made within four weeks. In addition, the SFC issued a Circular to Management Companies of SFC-authorised Real Estate Investment Trusts - Steamlined documentary requirements for secondary offerings. These initiatives have been taken “to underscore the SFC’s commitment to driving the long-term growth of Hong Kong’s REIT market and the city’s appeal as a vibrant fund-raising and investment hub", according to Christina Choi, the SFC’s Executive Director of Investment Products.

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 matter:

Reappointment of Non-Executive Directors to SFC announced

Anti-money laundering (AML) notices and news

AML notices:

The List of terrorists and terrorist associates designated by the United Nations Security Council, published pursuant to the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575) was gazetted on 22 October.
The List of individuals, groups, undertakings and entities published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) was updated on 22 October. Please refer to the press release on 21 October and 16 October.
The List of individuals and entities published under section 27 of the United Nations Sanctions (Haiti) Regulation (Cap.537CO) was updated on 22 October.
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:

Financial Action Task Force latest news and publications

Publications from other organizations:

Accounting firms hop into business advising from CFO.com
How to get your SME tech stack right from In The Black
Cybersecurity tool provides steps to manage risks, keep data safe from Financial Management
Insights into the practical effects on CECL by FASB ASU 2025-05 from Journal of Accountancy
The future of financial services will be defined by this one shift from Entrepreneur

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