NAVIGATION

Supporting your professional work on virtual assets

As the standard setter for the accounting profession, the Institute is committed to supporting members in navigating the evolving digital asset landscape.

We are currently formulating appropriate guidance for the accounting and auditing of virtual assets and related matters. This initiative complements the HKSAR Government’s policy direction to further develop Hong Kong’s digital asset market, as announced in last week’s Policy Address.

To keep members informed, we have issued Alert 51, which outlines the accounting and auditing initiatives currently underway.

Third podcast of the IFRS for SMEs Accounting Standard series

This podcast series aims to provide stakeholders with key updates on the third edition of the IFRS for SMEs Accounting Standard (Standard), share insights on these updates, and provide information on where to find related resources.

In the third episode, IASB technical staff and IASB member share insights on the Standard from an SME investor’s perspective.

E-learning: Navigating the latest accounting updates: Insights for SMEs and SMPs

Enrol in the e-learning session to learn about the latest developments in accounting standards that are relevant for small and medium-sized enterprises (SMEs) and small- and medium-sized practices (SMPs). This e-learning covers the following:

A recap of the financial reporting frameworks applicable to SMEs;
An overview of the revised HKFRS for Private Entities Accounting Standard (revised PE Standard);
A deep dive into the major changes to Section 11 Financial Instruments and Section 23 Revenue from Contracts with Customers of the revised PE Standard;
An introduction to HKFRS 19 Subsidiaries without Public Accountability: Disclosures – reduced disclosure requirements for eligible subsidiaries; and
Practical FAQs from SMEs/SMPs.

Reminder - HKICPA Annual Auditing Update 2025: Embracing Changes for a Sustainable Future

Join us for a virtual conference on 18 October, where you will gain key insights into the latest auditing and assurance topics. The conference will cover updates from the International Auditing and Assurance Standards Board (IAASB), the revised ISA/HKSA 240 on fraud, HKSA 570 (Revised 2024) on going concern, the HKSA for less complex entities and sustainability assurance and ethics. Register now to enhance your expertise and engage with the latest developments in auditing.

Live webinar: Briefing on New Capital Investment Entrant Scheme

The New Capital Investment Entrant Scheme (the Scheme) was launched on 1 March 2024 with the aim of attracting asset owners to settle in Hong Kong and explore its diverse investment opportunities through wealth allocation and management. Applicants to the Scheme are required to engage a Certified Public Accountant (Practicing), as defined in the Accounting and Financial Reporting Council Ordinance (Cap. 588), at their own cost to issue documents demonstrating their fulfillment of the Net Asset Requirement, Investment Requirements and Portfolio Maintenance Requirements.

During the webinar on 28 October, the speaker from New CIES Office will cover the following aspects of the Scheme and answer questions from members:

Eligibility criteria;
Application procedures;
Net Asset Assessment, assessments on Investment Requirements and Portfolio Maintenance Requirements; and
Guide on preparation of fulfillment documents in demonstrating the applicant’s fulfilment of Net Asset Requirement, Investment Requirements and Portfolio Maintenance Requirements.

Industry specific events in October and November

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

Workshop on Audit of Licensed Corporations and Associated Entities of Intermediaries

(24 October): This session will cover:

Overview of the Securities and Futures Ordinance requirements;
Highlights and reminders on HKICPA Practice Note 820 (Revised), The Audit of Licensed Corporations and Associated Entities of Intermediaries;
Audit considerations and sharing of practical experience;
Common accounting treatments of licensed corporations; and
Recent inspection findings of the Accounting and Financial Reporting Council (AFRC) for auditor’s reporting on licensed corporations.

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).

The Institute’s Auditing and Assurance Standards Committee meeting

Minutes of the 419th meeting are now available.

Narrow-scope amendments on working with experts approved by the International Auditing and Assurance Standards Board (IAASB)

At the September meeting, the IAASB approved targeted amendments to its standards arising from revisions to the International Ethics Standards Board for Accountants’ (IESBA) International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) regarding the use of the work of an external expert.

IAASB video series: What auditors need to know about the new fraud standard: ISA 240 (Revised)

The IAASB has released videos introducing ISA 240 (Revised) The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements, issued in response to recent corporate failures and high-profile fraud cases. Julie Corden, former IAASB member and chair of its Fraud Task Force, introduces the standard and the revisions in four videos:

Introducing the Revised Fraud Standard;
A Sharper Focus on Fraud Risk;
A More Robust Response to Standard Assessment Identified or Suspected Fraud; and
Enhanced Transparency in the Auditor's Report.

IAASB meeting minutes

Minutes of the 149th meeting are now available.

IESBA meeting summary

The highlights and decisions from the IESBA meeting held in June are now available.

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.

Invitation to comment

The Institute is seeking comments on the Exposure Draft Technical Bulletin 5 (Revised), Environmental, Social and Governance (ESG) Reporting (AATB 5 (Revised)) by 12 October.

Video series highlights important aspects of the ISSB’s proposed amendments to the SASB Standards

The International Sustainability Standards Board (ISSB) has released a video series that highlight the key elements of the exposure drafts (EDs) for the proposed amendments to the SASB Standards and the Industry-based Guidance on Implementing IFRS S2. Further videos will be added during the consultation period.

The Institute’s public consultation on the two EDs will end on 14 October.

Webinar series - Perspectives on sustainability disclosure

In the upcoming Episode 12 of the IFRS Foundation’s webinar series, titled “Climate-related scenario analysis”, ISSB member Veronika Pountcheva will provide an overview of the IFRS S2 Climate-related disclosures requirements related to scenario analysis and climate resilience. Moreover, the panelists from the insurance sector, the actuarial profession and the climate modelling community will explore how scenario analysis can support the disclosure of decision-useful information for investors and current market practices.

Whether you're developing your first climate resilience assessment or refining your existing approach, this episode will highlight key considerations and perspectives on using scenario analysis in a way that is proportionate to your company’s circumstances—and satisfies IFRS S2 disclosure requirements. Click here to register or view past episodes.

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.

News from Hong Kong Exchanges and Clearing Limited (HKEX)

The HKEX has published Carbon Credits: A Buyer's Guide which provides an overview of the nature of carbon credits and how the carbon market operates. This market is gaining momentum as more corporations turn to buying carbon credits as an interim measure of offsetting emissions on their journey to reaching net zero.

Tender for Taking Up of Appointment as Provisional Liquidators under Section 194(1A) of the CWUMPO (Tender Reference: OR/T/2025)

The Official Receiver’s Office has issued a tender notice to invite interested insolvency practitioners to submit a tender for taking up of appointments as provisional liquidators under section 194(1A) of the Companies (Winding Up and Miscellaneous Provisions) Ordinance (CWUMPO)(Cap. 32). The allocation period under the related contract will last for two years, ending on 31 March 2028. Tenders must be submitted by 12:00 noon on 9 October, 2025. For further details, please refer to the official announcement:

https://www.oro.gov.hk/eng/announcements/tender.html.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

Announcements by the government

Members may wish to be aware of the following matters:

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:

5 ways AI augments the accountant’s role from Financial Management
5 essential tactics of future-ready firms from Journal of Accountancy
Prepare for the quantum computer shift from In The Black
Agentic AI rushes to the leading edge from CFO.com
The AI moment: Why accountants must lead with responsibility from CPA Canada

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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