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Handbook Update No. 339 relates to the issuance of Translation to a Hyperinflationary Presentation Currency (Amendments to HKAS 21 The Effects of Changes in Foreign Exchange Rates).
The amendments specify the translation procedures for an entity whose presentation currency is that of a hyperinflationary economy. An entity applies the amendments if:
- its functional currency is that of a non-hyperinflationary economy and it translates its results and financial position into the currency of a hyperinflationary economy; or
- it translates the results and financial position of a foreign operation, whose functional currency is that of a non-hyperinflationary economy, into the currency of a hyperinflationary economy.
The amendments will become effective for annual reporting periods beginning on or after 1 January 2027, with earlier application permitted.
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E-learnings: archived webinars for financial reporting
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The Institute hosted a series of live webinars in the last quarter, covering a range of hot topics in financial reporting. These sessions have been archived for members’ access. Enrol now if you missed any of these webinars.
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IAASB issues Narrow-Scope Amendments related to IESBA’s Using the Work of Experts
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The International Auditing and Assurance Standards Board (IAASB) has published narrow-scope amendments to its standards arising from the International Ethics Standards Board for Accountants’ (IESBA) Using the Work of an External Expert project.
These amendments respond to the IESBA’s recently approved revisions to its International Code of Ethics for Professional Accountants (including International Independence Standards), which introduced, among other provisions, explicit ethical requirements for using the work of external experts in audit, assurance, and non-assurance engagements. The IAASB’s updates reflect ongoing collaboration and coordination between the IAASB and IESBA and help to maintain interoperability between the IAASB standards and the IESBA Code.
The targeted amendments affect the following IAASB standards:
- ISA 620, Using the Work of an Auditor’s Expert
- ISRE 2400 (Revised), Engagements to Review Historical Financial Statements
- ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information
- ISRS 4400 (Revised), Agreed-upon Procedures Engagements
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IAASB sets out its approach to maintaining the ISA for LCE
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The IAASB has developed an approach for maintaining the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (the ISA for LCE).
The approach is detailed in an Approach Statement that promotes transparency and execution consistency. It establishes a mechanism for updating the ISA for LCE that emphasizes that revisions to the ISA for LCE should be:
- Relevant in the context of the typical nature and circumstances of an audit of a less complex entity; and
- Aligned, in a proportionate manner, with the core requirements and concepts of the International Standards on Auditing.
The Approach Statement sets out the context, purpose, process, responsibilities, outputs, and timing for maintaining the ISA for LCE. It also describes the steps the IAASB will follow when developing revisions to the ISA for LCE in response to new or revised auditing standards.
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The Institute’s Auditing and Assurance Standards Committee meeting
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Minutes of the 430th meeting are now available.
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IESBA launches firm culture and governance viewpoints
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The IESBA has launched its Viewpoints on eight fundamental elements of an ethical culture and governance framework for accounting firms.
The IESBA Viewpoints on Firm Culture and Governance respond to growing recognition that ethical behavior is shaped not only by rules and individual conduct, but also by organizational factors such as leadership, governance, accountability, incentives, openness and transparency, among others.
The Viewpoints are not a proposed framework. They are intended to stimulate reflection, learning and engagement, and to support informed dialogue on what a future global framework on firm culture and governance should look like.
Supporting materials released include:
- A booklet presenting the Viewpoints on the eight elements of the Firm Culture and Governance Framework and outlining the objectives of the project and the dialogues planned for the first half of 2026;
- A Snapshot providing a short, non-technical overview of the project, the Viewpoints, upcoming discussions and key decisions expected in 2026;
- A Briefing Note setting out the Viewpoints, their context and objectives, engagement questions and next steps; and
- A high-level paper outlining linkages between the Viewpoints and International Standard on Quality Management 1.
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The Institute’s Ethics Committee meeting minutes
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Minutes of the 272nd meeting are now available.
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Your voice matters: AFRC's consultation on Proposed Sustainability Assurance Framework
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The Accounting and Financial Reporting Council (AFRC) has released a consultation paper on the proposed regulatory framework for sustainability assurance in Hong Kong.
In this video, the AFRC outlines the five key proposals designed to promote high-quality assurance by adopting international standards; enhancing the credibility and reliability of sustainability disclosures; and ensuring a level playing field for all assurance providers.
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Q1 2026 ISSB implementation insights podcast
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The International Sustainability Standards Board (ISSB) podcast features its vice-chair and technical staff discussing various resources available to support companies applying ISSB Standards. They outline how ISSB is working to facilitate implementation. The presenters also discuss agenda papers for the Transition Implementation Group November 2025 meeting. These papers can serve as valuable resources to help with implementation questions.
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HKFRS S1 and S2 implementation platform
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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 upcoming meeting.
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Announcements by the Inland Revenue Department (IRD)
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Members may wish to be aware of the following matters:
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Announcements by the government
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Members may wish to be aware of the following matters:
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Anti-money laundering (AML) notices and news
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Announcement of the launch of STREAMS 2 by the JFIU
The Joint Financial Intelligent Unit (JFIU) has upgraded its Suspicious Transaction Report and Management System (STREAMS) to STREAMS 2, set to launch on 2 February.
Upon the launch of STREAMS 2, regulated entities will no longer be able to submit Suspicious Transaction Reports (STRs) via email, fax, or post. All STRs must be submitted electronically through STREAMS 2. Three submission options will be available:
- Submit STR via XML Submission (e-cert is required);
- Upload a completed STR in proscribed PDF format in STREAMS 2 (e-cert is required); and
- Complete the STR web-form directly in STREAMS 2 (e-cert is not required)
User account registration
For reporting institutions that wish to open STREAMS 2 user accounts, please fill in the application form and revert to JFIU (jfiu@police.gov.hk).
Arrangement for system transition
To ensure a smooth data migration from STREAMS to STREAMS 2, please note the following arrangements:
- JFIU will stop receiving STR submissions at 12:00 a.m. on 28 January in STREAMS and will resume accepting STR submissions at 9:00 a.m. on 2 February in STREAMS 2.
- For any urgent information that requires immediate STR submission to JFIU during the blackout period of STREAMS, please contact JFIU directly via email, phone or fax.
- Upon the launch of STREAMS 2 on 2 February, the operation of STREAMS will cease. STR records previously submitted in STREAMS will be migrated to STREAMS 2. Reporting institutions will be able to access these records and view the consent status, if applicable. Nevertheless, reporting institutions are advised to implement appropriate measures to ensure proper record keeping within their own systems.
- For reporting institutions submitting STR via XML submission or those interested in doing so, please follow the XML schema provided by JFIU under a separate cover, and liaise with JFIU as soon as possible to arrange for technical testing to ensure a smooth transition.
Enquiries
For further enquiries, please contact Mr. Owen TSE, Senior Inspector of Police at 3660 0533 or via email at owencytse@police.gov.hk.
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
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Publications from other organizations:
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