NAVIGATION

MEMBERS' HANDBOOK

Handbook Update No. 331 relates to the publication of HKSA 570 (Revised 2024) Going Concern Including Conforming and Consequential Amendments to Other International Standards on Auditing (ISAs), which is equivalent to ISA 570 issued by the International Auditing and Assurance Standards Board (IAASB).

Effective for audits of financial statements for periods beginning on or after 15 December 2026, HKSA 570 (Revised 2024) enhances the evaluation of management’s assessment of an entity’s ability to continue as a going concern. These updates aim to strengthen consistency, transparency, and reporting on going concern matters. The key impacts document summarizes the major changes to the standard and their implications for audit engagements performed following HKSA 570 (Revised 2024).

2024-25 Annual Inspection Report and Annual Investigation and Compliance Report

The Accounting and Financial Reporting Council (the AFRC) has published two reports for the year ended 31 March 2025: the Annual Inspection Report and the Annual Investigation and Compliance Report. The reports noted that the profession is making progress in improving audit quality, supported by a clear commitment from firms in enhancing the quality of their audit work. However, the reports also identified recurring audit deficiencies, indicating the need for further improvements to ensure consistency and reliability across the profession.

The HKICPA Certificate in Sustainability Reporting is now open for enrolment

The Institute has launched the HKICPA Certificate in Sustainability Reporting programme, designed to equip professionals with the skills to implement HKFRS S1 and HKFRS S2. The certificate includes expert-led modules on materiality assessment, scenario analysis, GHG emissions, stakeholder engagement, and integrating sustainability into financial and risk management practices.

Last call: Institute roundtable discussion on IASB Post-implementation Review of IFRS 16 Leases

The Institute will host a roundtable on 13 August to gather views from stakeholders on the International Accounting Standards Board (IASB) Request for Information regarding the Post-implementation Review of IFRS 16 Leases. This is an excellent opportunity for you to share your experiences and perspectives on applying the standard, with the Institute and directly with representatives from the IASB. Join us in this roundtable discussion to contribute to the enhancement of IFRS 16 requirements. Register by 8 August to reserve your place.

IFRS Foundation publishes near-final examples on reporting uncertainties in the financial statements using climate-related examples

The IFRS Foundation has published near-final examples to demonstrate how companies can improve the reporting of uncertainties in their financial statements using climate-related examples as practical illustrations. This early publication aims to support timely and informed application. The IASB expects to issue the final examples in October 2025.

Although the examples use climate-related fact patterns, the guidance provided is applicable to all types of uncertainties. The examples demonstrate how companies can apply IFRS Accounting Standards to enhance disclosure of uncertainties in the financial statements.

IFRS Interpretations Committee agenda decision

The IFRS Interpretations Committee has published the agenda decision Assessing Indicators of Hyperinflationary Economies (IAS 29 Financial Reporting in Hyperinflationary Economies).

Q2 2025 IFRS Interpretations Committee podcast

In this podcast, the IFRS Interpretations Committee’s Chair Bruce Mackenzie and member Brian O'Donovan highlight the discussions that took place at the June Committee meeting.

HKICPA technical training on auditing and assurance

Join the Institute’s upcoming technical training workshop designed to enhance your auditing knowledge.

Face-to-face workshop: Practical Application of Assurance and AUP Standards (28 August): The session will highlight the key requirements of HKSAE 3000 (Revised) and HKSRS 4400 (Revised) engagements, focusing on practical considerations for conducting these engagements using common market examples.

Comment letter

The Institute has submitted its comment letter on the IAASB Exposure Draft: Proposed Narrow-Scope Amendments to IAASB Standards Arising from the International Ethics Standards Board for Accountants’ (IESBA) Using the Work of an External Expert Project.

IAASB highlights how revised standards reinforce professional skepticism

The IAASB has released a new non-authoritative publication titled How the IAASB’s Revised Going Concern and Fraud Standards Reinforce Professional Skepticism. The publication aims to assist stakeholders in understanding how the revisions to ISA 570 (Revised 2024), Going Concern Including Conforming and Consequential Amendments to Other ISAs and ISA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements strengthen the consistent application of professional skepticism throughout the audit. The revised standards are effective for audits of financial statements for periods beginning on or after 15 December, 2026.

Developed with input from the IAASB’s Professional Skepticism Consultation Group, this publication highlights key enhancements to both standards reflecting the IAASB’s efforts to reinforce professional skepticism by addressing, among other matters, how auditors are expected to maintain a questioning mindset, consider contradictory evidence, and appropriately challenge management assumptions.

IAASB eNews

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

ICAEW publications

The July issue of the Institute of Chartered Accountants in England and Wales (ICAEW) Audit and Beyond features articles that provide auditors with essential resources and insights:

Write it right, write it once – the key to efficient audit documentation: This article examines where auditors may be going wrong with audit documentation, the benefits of getting it right and what ‘good’ looks like.
Engaging with sustainability assurance: This article explores key insights on the emerging global sustainability assurance framework, with practical pointers from audit and assurance professionals in practice and standard setting.

IESBA publishes summary of feedback from global roundtables on firm culture and governance

The IESBA has released Firm Culture and Governance: Summary of Feedback from Global Roundtables, which captures stakeholder perspectives from six global roundtables held earlier this year as part of the IESBA's Firm Culture and Governance project. The insights gathered through these discussions have directly informed the IESBA’s recent decision to remain firmly committed to taking decisive steps to address the cultural and governance dimensions within accounting firms, recognizing their critical impact on ethical behavior. These insights will also shape the IESBA’s future initiatives.

IESBA Focus: the Staff Driven Model

IESBA Program and Senior Director Ken Siong discusses a recent shift in the development of international ethics and independence standards: the Staff Driven Model. Learn how the IESBA is moving from board-led task forces to empowered staff-led project teams, why this change aligns with global regulatory reforms, and how the model is already being piloted with promising results.

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.

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:

Sustainability Assurance Workshops:

20 August: Groups Sustainability Assurance Engagements
3 September: Risk Identification and Assessment
17 September: Responding to Risks of Material Misstatement

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.

Invitation to comment

The Hong Kong Exchanges and Clearing Limited (HKEX) has published a Discussion Paper on Accelerated Settlement for the Hong Kong Cash Market. The paper invites stakeholders’ views on a proposal to transition the current T+2 settlement cycle to a T+1 settlement cycle. The shortened settlement cycle will apply to secondary transactions in the Cash Market, i.e. equities, exchange traded products (ETPs), structured products, real estate investment trusts (REITs), debt securities traded on the Stock Exchange of Hong Kong Limited and settled in CCASS, and physical settlements of equities relating to stock options. Market participants and stakeholders are requested to respond on the topics of discussion in the paper through this portal by 1 September.

On 14 July, the Securities and Futures Commission (SFC) launched a Consultation on draft FRR amendments, Guidelines for Internal Models Approach for FRR Market Risk Charges Calculation and General Principles for Model Risk Management. Under the proposals, the capital requirements for licensed corporations (LCs) engaging in over-the-counter derivative activities (OCTD capital requirements), as previously proposed in the SFC's 2015 consultation, have been fine-tuned with reference to recent changes to Hong Kong’s Banking (Capital) Rules and the Basel Framework. The SFC has also proposed changes to the Securities and Futures (Financial Resources) Rules to support LCs’ business development and diversification. The public is invited to submit their written comments on the consultation by 13 October.

Notices from the ORO

Tender notice for appointment as provisional trustees

The Official Receiver’s Office (ORO) has issued a tender notice to invite interested insolvency practitioners (IPs) to submit tenders for taking up of appointment as provisional trustees under section 12(1A) of the Bankruptcy Ordinance (Cap. 6). The deadline for submission of tenders is 12:00 noon, 7 August. More details are available here: https://www.oro.gov.hk/eng/announcements/tender.html.

Bankruptcy and Companies Legislation (Miscellaneous Amendments) Ordinance 2023 (Commencement) Notice 2025

The ORO has issued a letter, reminding IPs that the remaining provisions in Part 2 of the Bankruptcy and Companies Legislation (Miscellaneous Amendments) Ordinance 2023, relating to specified forms and requirements for submissions of documents, came into operation on 14 July.

Launch of Phase 2 of the ESS

The ORO has also issued a letter, reminding IPs that Phase 2 of the Electronic Submission System (ESS) was launched on 14 July, and encouraging all IPs to register for the ESS in order to take full advantage of its functions.

Further details are contained in the letters. Any questions should be directed to the relevant contacts of the ORO as stated in the letters.

Inland Revenue Department (IRD) launches New Tax Portals

On 22 July, the IRD officially launched the New Tax Portals (NTPs) under eTAX services provided at GovHK. The NTPs provide a comprehensive suite of online platforms designed to cater to the needs of individuals, businesses, and service agents, and include:

Individual Tax Portal (ITP): Developed for individual taxpayers to manage their personal tax matters.
Business Tax Portal (BTP): Designed for businesses to handle their tax and/or business affairs through a multi-user platform with enhanced convenience.
Tax Representative Portal (TRP): Tailored for service agents to handle their clients’ tax-related matters electronically.

The portals offer a wide range of online services, including e-filing of tax returns, viewing of tax records, lodgment of objections and holdover applications, block extension services, upgraded message box, application for certificates of resident status, business registration, e-stamping and other tax-related services.

The IRD encourages taxpayers and service agents to register now, embrace the digital trend and simplify the management of their or their clients’ tax affairs.

For more details, please visit: https://etax.ird.gov.hk

Other 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 matter:

Business expectations for the third quarter of 2025

Anti-money laundering (AML) notices and news

AML notices:

The List of individuals and entities published under section 43 of the United Nations Sanctions (Libya) Regulation 2019 (Cap. 537CF) was updated on 25 July.
United Nations Sanctions (Somalia) Regulation 2019 (Amendment) Regulation 2025 gazetted
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:

NASBA, AICPA give blessing to 120-hour CPA pathway from CFO.com
AICPA & CIMA Business Resilience Toolkit – levers for action from Journal of Accountancy
The materiality matrix explained from In The Black
How the next generation of entrepreneurs is outpacing us – and why from Entrepreneur
UK regulator amends pensions standard from Financial Management

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