NAVIGATION

MEMBERS' HANDBOOK

Handbook Update No. 327 relates to the amendments to HKFRS 19 Subsidiaries without Public Accountability: Disclosures. These amendments clarify the eligibility criteria for applying the standard and the corresponding disclosure requirements. Following the amendments, subsidiaries without public accountability whose ultimate or intermediate parents produce consolidated financial statements that are available for public use and comply with IFRS Accounting Standards are also eligible to apply HKFRS 19.

Reminder - Institute live webinar on accounting considerations related to ESG and climate-related risks

Join our upcoming live webinar on 9 June to explore the evolving landscape of ESG and climate-related risks in financial reporting. This webinar will provide an overview and discussion on:

Emerging topics related to ESG and climate risks, such as climate-related commitments, impairment testing, emissions schemes and green bonds, along with the application of relevant IFRS Accounting Standards in some common scenarios;
The International Accounting Standards Board (IASB) Exposure Draft Climate-related and Other Uncertainties in the Financial Statements;
Connectivity between financial and sustainability reporting; and
Relevant agenda decisions published by the IFRS Interpretations Committee.

IFRS Interpretations Committee agenda decisions

The IFRS Interpretations Committee has published the following agenda decisions:

IASB April 2025 Update

The IASB Update, summarizing the April 2025 IASB meeting, is now available.

International Standard on Auditing 570 (Revised 2024), Going Concern

The International Auditing and Assurance Standards Board (IAASB) has issued ISA 570 (Revised 2024), which significantly enhances the auditor’s work in evaluating management’s assessment of an entity’s ability to continue as a going concern. It also increases consistency in auditing practices and strengthens transparency through communications and auditor reporting on matters related to going concern in a consistent manner. ISA 570 (Revised) will be effective for audits of financial statements for periods beginning on or after 15 December 2026. The Institute will follow its due process for the convergence and adoption of the standard.

AFRC video: Cracking the Code of IT Risks and Controls

The Accounting and Financial Reporting Council (AFRC) video AFRC Connect Ep.2 - Cracking the Code of IT Risks and Controls explores the impact of IT risks and controls on auditing by using a real-life case to demonstrate the importance of understanding and evaluating these risks and controls in the auditing process. More information is available in the AFRC Checkpoint – Obtaining an understanding of the audit clients' IT environments.

AFRC reminder: Consider tariff disruptions in audits

The recent broad set of tariffs imposed by the United States on imports from various countries adds new complexities for businesses engaged in international trade. To assist auditors in assessing risks and ensuring compliance with applicable auditing standards, the AFRC has published key reminders based on reporting periods along with other audit considerations.

Workshop for audit managers/seniors in-charge/new auditors – re-run

Join the Institute’s audit workshops to enhance your auditing knowledge:

Workshop for Audit Mangers/Seniors In-Charge (14, 15 and 21 May): This workshop will focus on advanced auditing topics such as risk assessment procedures, auditing accounting estimates and going concern assessment.
Workshop for New Auditors (13, 19 and 20 June): Designed to provide participants with the core concepts and practical skills essential for financial statement audits, this workshop will also share experiences relevant to new auditors.

HKICPA sustainability assurance webinar: Overview of HKSSA 5000, General Requirements for Sustainability Assurance Engagements

Join this insightful webinar on 12 June, which will provide a comprehensive overview of the new assurance standard, HKSSA 5000. The session will cover the following key aspects:

Fundamental principles and concepts
Engagement acceptance and continuance
Group sustainability assurance engagements and the use of the work of others

Webinar: Navigating Assurance and AUP Standards

Join the 18 June webinar to enhance your understanding of the two keys standards used as reporting frameworks for engagements other than audits or reviews of financial statements. The speaker will cover:

Overview and key requirements of HKSAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information and HKSRS 4400 (Revised), Agreed-Upon Procedures Engagements
Factors to consider when determining an appropriate reporting framework
Common pitfalls to avoid

ICAEW article: Safeguarding the Quality of your Audits

The Institute of Chartered Accountants in England and Wales (ICAEW) article Safeguarding the Quality of your Audits aims to navigate the requirements of International Standard on Quality Management 1. It focuses on what to do with monitoring findings and getting to the root cause.

IAASB eNews

Access the IAASB eNews to understand the latest updates from the IAASB’s projects.

Invitation to comment

The Institute is seeking comments on the International Ethics Standards Board for Accountants (IESBA) Consultation Paper: Collective Investment Vehicles and Pension Funds by 30 May 2025.

The consultation seeks views on auditor independence matters pertaining to audits of Investment Schemes when these Schemes involve external parties. It also aims to inform the IESBA’s consideration of whether its International Independence Standards are sufficiently clear and fit for purpose for such audits.

The Institute’s Ethics Committee meeting minutes

Minutes of the 267th meeting are now available.

Webinar series - Perspectives on sustainability disclosure

In the upcoming Episode 9 of the webinar series, "Ramping up systems and processes for sustainability data", experts from the International Sustainability Standards Board (ISSB) and industry leaders will explore how some companies integrate sustainability information into financial reporting processes. They will discuss:

how companies collect and manage sustainability-related financial information today;
how to use internal controls in preparing reliable sustainability-related financial disclosures;
how some companies adapt financial reporting systems for sustainability data; and
how businesses are overcoming data challenges they face in scaling up sustainability-related financial reporting.

Click here to register or view past episodes.

ISSB April 2025 podcast & update

In this podcast, the ISSB Chair and Vice-Chair share insights into developments from the ISSB, including the recently launched Roadmap Development Tool, the stakeholder engagements, key takeaways from the April ISSB meeting and upcoming consultations and events. In addition, a summary of the April 2025 meeting is now available.

HKICPA & ACCA Collaboration – Global sustainability reporting survey

The Institute is pleased to support ACCA’s global research initiative, Sustainability Reporting: Track Your Progress, which aims to help organizations evaluate the maturity of their sustainability reporting practices. The survey explores how organizations are progressing in:

Meeting stakeholder needs
Developing systems and processes
Equipping individuals to produce and use sustainability information responsibly

This joint initiative enables us to compare insights from Hong Kong with global findings and identify areas for capacity building. The survey takes five minutes to complete and will close on 9 May. Take part.

Inland Revenue Department (IRD) – 2024/25 Profits Tax Filing

The IRD issued 2024/25 Profits Tax Returns to corporations and partnership businesses on 1 April 2025.

To keep pace with the development in international tax administration and information technology, the IRD is actively promoting tax digitalization. Taxpayers are encouraged, on a voluntary basis, to file their Profit Tax Returns together with the supporting documents (including financial statements and tax computations) electronically, in iXBRL format.

To facilitate taxpayers in preparing the required iXBRL data files, the IRD is providing the IRD Taxonomy Package (the Taxonomy) and the IRD iXBRL Data Preparation Tools (including the Template Tool and Tagging Tool, collectively known as “the Tools”), which are available for download from the IRD website free of charge. The Taxonomy and the Tools have been updated and enhanced this year. The major enhanced features include:

enhancing the English Tagging Tool (Windows Version) to accept the import of financial statements in Microsoft Excel format; and
enriching the selection of currency types to facilitate taxpayers in generating the iXBRL data files for financial statements and tax computations denominated in a wider variety of currencies.

More details on electronic filing of Profits Tax Returns and iXBRL filing can be found on the IRD’s webpages on e-filing of Profits Tax Returns and iXBRL filing.

For enquiries in relation to the iXBRL filing requirements and the use of the Tools, you may contact the IRD or access e-Appointment to book a specific timeslot to make enquiries via phone.

The IRD will launch three interconnected portals, namely Individual Tax Portal, Business Tax Portal (BTP) and Tax Representative Portal (TRP), in July 2025 to provide electronic services, including enhanced electronic filing services, block extension service and other electronic services for individuals, businesses and tax representatives.

The BTP and TRP is now pre-launched for businesses and tax representatives to register their dedicated accounts. Register NOW to enjoy a wide range of electronic services.

The IRD also aims at implementing full adoption of electronic Block Extension Scheme starting from April 2026. Therefore, tax representatives are required to submit their block extension applications or notifications electronically through the block extension service, under the TRP, in respect of their clients’ Profits Tax Returns, with effect from the year of assessment 2025/26. Tax representatives are encouraged to lodge block extension applications or notifications electronically this year, so as to enhance the efficiency, accuracy and reliability of block extension requests. More details in relation to the Block Extension Scheme can be found on the IRD’s webpages on Block Extension Scheme for Tax Representatives.

Announcements by the IRD

Members may wish to be aware of the following matters:

Announcements by the government

Members may wish to be aware of the following matters:

Speech by FS at Hong Kong Investment Corporation Limited and WeLab Strategic Partnership Kick-off Ceremony
The Mandatory Provident Fund Authority has issued a consultation paper on the proposed full portability of MPF benefits under the MPF system. Members of the public are invited to respond to the consultation questions in writing, via any of the channels stated in the consultation paper, on or before 28 April.
Trade Unions (Amendment) Bill 2025 gazetted
Employment (Amendment) Bill 2025 gazetted
HKMA and SFC consult on annual update to Financial Services Providers list under OTC derivatives regulatory regime
Hong Kong updates methodology for compiling greenhouse gas emission inventory and releases emission inventory for 2023
LCQ19: Operation of Hong Kong Investment Corporation Limited
LCQ12: Promoting development of tourism industry
LCQ2: Organisations promoting and co-ordinating development of innovation and technology

Anti-money laundering (AML) notices and news

AML notices:

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:

Publications from other organizations:

4 steps for CFOs to mitigate tariff risk from CFO.com
Is your small business actually ready to adopt AI? This company's experience reveals why preparation is everything from Entrepreneur.com
Mindset, accountability, change: how to empower the finance team from Financial Management
How accountants can balance technology and critical thinking from Journal of Accountancy
Tariffs and global trade: the economic impact on business by McKinsey & Company

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