Standard setting |
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Invitation to comment |
The Institute is seeking comments on the following tentative agenda decisions published by the International Financial Reporting Standards (IFRS) Interpretations Committee by 5 January 2024:
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Institute virtual roundtable discussion: IASB Exposure Draft on Financial Instruments with Characteristics of Equity |
The Institute will be holding a virtual roundtable on 22 January 2024 to obtain feedback from stakeholders on the Exposure Draft (ED) issued by the International Accounting Standards Board (IASB) on Financial Instruments with Characteristics of Equity – Proposed amendments to International Accounting Standard (IAS) 32 Financial Instruments: Presentation, IFRS 7 Financial Instruments: Disclosures and IAS 1 Presentation of Financial Instruments. Representatives from the IASB will be present to explain the key areas in the ED and interact directly with the participants. Considering the potential impacts brought by the proposals on the classification, presentation and disclosures of some financial instruments, which could in turn affect a company’s financial position and performance, members and other interested parties are highly encouraged to join the roundtable to express their views on the ED. Register to reserve your place by 12 January 2024. |
Reminder: Institute live webinar on year-end financial reporting reminders for 2023 |
Don’t miss the live webinar on 18 January 2024 which will discuss financial reporting considerations for closing out 2023. The speaker will discuss the following topics:
- HKFRS Amendments that are effective in 2023
- Accounting implications of the abolition of the MPF-LSP offsetting mechanism in Hong Kong
- IFRS Interpretations Committee agenda decisions that are relevant to Hong Kong
- HKFRS Amendments that will become effective in 2024
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The Institute’s Financial Reporting Standards Committee meeting minutes |
Minutes of the September 2023 meeting is now available. |
Webcast series: the forthcoming IFRS Accounting Standard for subsidiaries |
In this webcast, William Biese, member of the Mexican Financial Reporting Standard Setting Board, joined the IASB technical staff member to discuss the possible effects of the forthcoming reduced-disclosure IFRS Accounting Standard for subsidiaries of parent companies that apply IFRS Accounting Standards. They discussed how this new standard may simplify and reduce the cost of preparing subsidiaries’ financial statements while maintaining their usefulness to their users. |
IFRS Interpretations Committee November 2023 Update |
The IFRS Interpretations Committee Update provides a summary of discussions at its November meeting. Topics discussed include climate-related commitments, disclosure of revenues and expenses for reportable segments and merger between a parent and its subsidiary in separate financial statements. |
IASB summarizes its completed project on extractive activities |
The IASB published a summary of its project on extractive activities. The summary explains the reasons for the IASB taking on the project, the work done and the key decisions made, including the reasons for deciding to retain IFRS 6 Exploration for and Evaluation of Mineral Resources. Based on evidence collected between 2018 and 2023, the IASB decided not to develop new or amended recognition, measurement or disclosure requirements for exploration and evaluation expenditure or other aspects of accounting for extractive activities. The IASB did not find compelling evidence that standard-setting would be necessary. |
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Considerations for 2023 year-end audits |
With the 2023 year-end audits approaching, the Institute has published an Alert with some points for consideration when performing audits and other forms of reporting. They include additional procedures when receiving responses to confirmation requests by electronic mail, and impact to auditor’s reports as a result of the narrow-scope amendments made to Hong Kong Accounting Standard (HKAS) 1 Presentation of Financial Statements. |
A standard for audits of less complex entities |
The International Auditing and Assurance Standards Board (IAASB) has published the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities, known as the ISA for LCE. It is a standalone global auditing standard designed specifically for smaller and less complex businesses and organizations. Built on the foundation of the International Standards on Auditing (ISAs), audits performed using this standard provide the same level of assurance for eligible audits: reasonable assurance. The standard is effective for audits beginning on or after 15 December 2025 for jurisdictions that adopt or permit its use. There is a requirement in the standard for relevant local bodies with standard-setting authority to determine quantitative thresholds for their jurisdiction. In view of this, the Institute’s Auditing and Assurance Standards Committee will consider the applicability of the standard in a local context and will follow the due process for adoption in Hong Kong. |
Workshop for new auditors (re-run) |
The Institute’s workshop across 17, 18 and 22 January is a tailor-made programme that provides the core concepts and practical skills essential for new auditors of financial statement audits. It applies an interactive learning format through discussions, case studies and role-play. Speakers will talk about auditing concepts and practical skills, as well as share their practice experience relevant to new auditors. |
Webinar on ISA 315 (Revised 2019) |
Watch the Institute of Chartered Accountants in England and Wales’ (ICAEW) recorded webinar on ISA 315 (Revised 2019), Identifying and Assessing the Risks of Material Misstatement which explores how to apply the revised requirements in practice, the importance of planning, controls, IT and general IT controls evaluation and sampling. Institute members can subscribe to ICAEW’s International Standards platform for free to access a wide range of resources on auditing and ethics. |
The Institute’s Auditing and Assurance Standards Committee meeting |
Minutes of the 412th meeting is now available. |
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HKICPA resource centre |
Access resources and publications at the Institute’s Resource Centre to the Code which will keep you updated on the latest ethics pronouncements. |
The Institute’s Ethics Committee meeting |
Minutes of the 259th meeting is now available. |
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New and updated resources to help companies apply the ISSB Standards |
Following the launch of the IFRS Sustainability knowledge hub at the 2023 United Nations Climate Change Conference (COP28), the IFRS Foundation has published new educational material to help companies consider ‘nature and social aspects’ of climate-related risks and opportunities when applying IFRS S2 Climate-related Disclosures. The material sets out three examples that help illustrate how companies might approach these aspects of their climate-related disclosures. The material has been developed to help companies apply the International Sustainability Standards Board (ISSB) standards. It does not affect any of the requirements within the standards. |
ISSB at COP28: Erkki Liikanen on progress and priorities to advance global sustainability disclosures |
Chair of the IFRS Foundation Trustees, Erkki Liikanen addressed COP28 to reflect on progress since the IFRS Foundation announced its decision to establish the ISSB in 2021. Mr Liikanen confirmed three further commitments in the IFRS Foundation’s efforts to support efficient and resilient capital markets through robust sustainability-related financial disclosures. Furthermore, he announced the re-appointment of ISSB Chair, Emmanuel Faber, for a second term and emphasized that Emmanuel will continue to work in partnership with his vice-chairs Sue Lloyd and Jingdong Hua. |
ISSB at COP28: close to 400 organizations join multilateral and market authorities to commit to advance the ISSB climate global baseline |
The declaration of support, announced during the Finance Day at COP28, demonstrates the strong support to advance action-oriented responses to the risk of climate change. The declaration of support was signed up by close to 400 organizations, including companies, investors, stock exchanges, professional accounting organizations, audit firms, regulators and standard setters from around the world. |
