Your fortnightly technical updates newsletter (5 January 2022)

Members' Handbook

Update No. 269 relates to consequential amendments arising from Hong Kong Financial Reporting Standards (HKFRSs) that are effective for annual reporting periods beginning on or after 1 January 2022. These amendments were previously set out in the appendices to the respective HKFRS or in a separate document Annual Improvements to HKFRSs 2018-2020. The update also includes editorial corrections for HKAS 1 (Revised) Presentation of Financial Statements and HKFRS Practice Statement 2 Making Materiality Judgements, and the withdrawal of HK(IFRIC)-Int 9 Reassessment of Embedded Derivatives.

Standard setting

Webinars on financial reporting

Don’t miss the following live webinars on 14 January:

• HKFRS 17 Insurance Contracts – Measurement models
• Year-end financial reporting reminders for 2021

IASB December 2021 podcast & updates

The IASB December podcast, with its chair and vice-chair highlighting the projects discussed during the December meeting, and a summary of the December meeting, are now available.

IFRS Interpretations Committee agenda decision

The IFRS Interpretations Committee published its agenda decision on Economic Benefits from Use of a Windfarm (IFRS 16 Leases) 

IAASB December board meeting

The meeting summary of the International Auditing and Assurance Standards Board (IAASB) December board meeting is now available.

The quality journey

An A Plus article explores how small and medium practices can begin preparing for the implementation of the new quality management standards that are effective from 15 December 2022.

ICAEW audit and assurance resources 

The Institute of Chartered Accountants in England and Wales (ICAEW) publication Audit and Beyond December 2021 explores how to improve audit files and keys to conducting a good audit.

Institute members can subscribe to ICAEW’s International Standards for free to access a wide range of resources on auditing and ethics.

Institute launches new webpage and video on the Code of Ethics

To help you refresh your memory and uphold professionalism in 2022 the Institute has launched a new webpage on the Code of Ethics for Professional Accountants and a new video recapping its structure and the fundamental principles. The page also includes links to educational material, and other relevant information.

Ethics Survey

Take part in the Institute’s survey to help the Institute understand the ethical attitudes of professional accountants in Hong Kong and how the Code of Ethics for Professional Accountants contributes in professional activities. The survey takes less than 10 minutes to complete and will close on 17 January 2022.

IESBA November-December board meeting

The meeting summary of the International Ethics Standards Board for Accountants (IESBA) November-December board meeting is now available.

Exploring the IESBA Code in audio

The Exploring the IESBA Code instalment series, which provides readers with an in-depth walkthrough of the IESBA Code in 12 easy to read instalments, is now available for free in audio format courtesy of the International Federation of Accountants and ProDio.

IESBA eNews

The IESBA latest eNews is now available, highlighting various activities going on in and around the IESBA.

Advocacy and practice development

Institute responds to consultation paper: Proposed Amendments to Listing Rules relating to Share Schemes of Listed Issuers

The Institute generally support the broad direction of the proposals in the consultation paper Proposed Amendments to Listing Rules relating to Share Schemes of Listed Issuers to align the regulatory requirements of both share option schemes and share award schemes. 

At the same time, in view of the expanded role of remuneration committees envisaged under the proposals, we consider that the spotlight has turned towards the composition, operation and functioning of these committees. In our view, this also needs to be looked at. Issues such as whether there should be a requirement (or, at least, a recommended best practice) for lead independent non-executive director on boards, and whether executive directors should continue to be eligible for appointment to remuneration committees, should be discussed.

Click here to read our detailed submission.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

• Stock Borrowing Relief – Filing of Return of Stock Borrowing Transactions
• A notice issued by the Inland Revenue Department (IRD) to remind taxpayers to pay their tax on time
• The IRD’s Annual Report 2020-21
• Stamp Duty statistics

Announcements by the government 

Members may wish to be aware of the following:

• The expansion of vaccine bubble from 24 February 2022 to combat COVID-19 spread

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 31 December 2021. See the relevant UNSC press release.

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 31 December 2021. See the relevant UNSC press release.

The list of individuals and entities published under section 33 of the United Nations Sanctions (Central African Republic) Regulation 2020 (Cap. 537CM), was updated on 22 December 2021. See the relevant 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:

• Essential soft skills advice for finance professionals in 2022 from Financial Management
• Connect with empathy, but lead with compassion from Harvard Business Review 
• How leaders can resolve to make change that sticks in 2022 from Fast Company
• 5 key steps for digital transformation during a crisis from Journal of Accountancy

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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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