Your fortnightly technical updates newsletter (28 October 2020)

Members' Handbook

Update No. 247 relates to the publication of Amendments to HKFRS 17 Insurance Contracts.

Update No. 248 relates to the publication of Hong Kong Interpretation 5 (2020) Presentation of Financial Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause.

Standard setting

Discussions on IASB’s Discussion Paper Business Combinations - Disclosures, Goodwill and Impairment

Members may be interested in two discussions on the International Accounting Standards Board’s (IASB) Discussion Paper DP/2020/1 Business Combinations – Disclosures, Goodwill and Impairment, which sets out possible improvements to the information companies report about acquisitions and to the accounting for goodwill. Members can submit their comments on the paper by 14 November.

IASB and EAA virtual research workshop

On 30 October, the IASB and the European Accounting Association will hold a virtual research workshop to provide an overview of the paper, discuss academic evidence, and obtain feedback.

IASB joint outreach webinar

On 12 November, the IASB, in conjunction with the European Financial Reporting Advisory Group, the European Federation of Financial Analysts Societies, and the Belgian Association of Financial Analysts, will hold a joint outreach webinar to consider the views of investors on the paper. The webinar will include live polling questions and a Q&A session.

IFRS Interpretations Committee’s third Compilation of Agenda Decisions

The IFRS Interpretations Committee has published its third biannual Compilation of Agenda Decisions, which brings together agenda decisions from April to September 2020. The committee publishes agenda decisions when, following consultation, it decides further standard-setting is not required to deal with a question raised. For example, if existing requirements are adequate to answer the question.

IASB research forum

On 2-3 November, the IASB, in conjunction with Accounting and Business Research, will hold the 2020 IASB Research Forum to discuss some of the latest accounting research relevant to the IASB’s work. Academics, practitioners, standard-setters, and regulators will participate in the Forum, and topics will include the accounting for intangible assets, the impact of IFRS 11 Joint Arrangements on the comparability of accounting information, and capital transition arrangements adoption and its effect on bank systematic risk under IFRS 9 Financial Instruments.

Institute’s roundtable discussion on the IAASB Discussion Paper Fraud and Going Concern in an Audit of Financial Statements

Join the Institute’s roundtable discussion on 20 November to share your views on the International Auditing and Assurance Standards Board (IAASB) Discussion Paper Fraud and Going Concern in an Audit of Financial Statements: Exploring the Differences Between Public Perceptions About the Role of the Auditor and the Auditor’s Responsibilities in a Financial Statement Audit. Members can submit their comments on the discussion paper by 11 December.

IAASB’s implementation plans for the quality management standards

The IAASB has developed implementation plans for the new quality management standards which explain implementation materials stakeholders can anticipate, topics covered, and expected timing.

IESBA surveys on key ethical questions arising from technological developments

The International Ethics Standards Board for Accountants (IESBA) has launched two online surveys seeking stakeholder feedback on key recommendations raised in the Technology Working Group Phase 1 Final Report. Don’t miss this opportunity to respond to the surveys by 10 November:

ACCA white paper on ethics in a Covid-19 world

The Association of Chartered Certified Accountants (ACCA) has launched its white paper “Ethics in a Covid-19 world” exploring the role of ethics against the backdrop of the pandemic. It also highlights a number of examples in which the pandemic has increased the risk of ethical compromise.

CIMA new online ethics tool

The Chartered Institute of Management Accountants (CIMA) has launched a new online ethics decision tool designed to help accounting professionals make ethically sound decisions in tough situations.

Emergence of integrated reporting assurance

An article by the Chartered Accountants Australia and New Zealand discusses the emergence of integrated reporting assurance.

Advocacy and practice development

Best Corporate Governance Awards

The 20th anniversary Best Corporate Governance Awards are nearing their final stages. The shortlisted listed companies and public sector organizations in the various corporate governance categories and the sustainability and social responsibility reporting section of the Awards have been referred to the judges for final determinations.

The results will be announced at the beginning of December.

Proposals for Corporate Rescue Bill

The government has issued a policy paper to the Legislative Council Panel on Financial Affairs, which proposes to introduce a long-awaited bill on corporate rescue into the Legislative Council in early 2021.

Announcements by the Inland Revenue Department

Members may wish to be aware of the following matters:

Liaison meeting with the State Taxation Administration

The Taxation Faculty's China Tax Subcommittee recently held its annual liaison meeting with the State Taxation Administration, to discuss topical cross-border and Mainland China tax issues. The meeting notes are now available in both traditional and simplified Chinese.

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.

Members may wish to be aware of the following case, involving serious deficiencies in AML controls, with the largest fines imposed by the Securities and Futures Commission (SFC) in its history:

SFC reprimands and fines Goldman Sachs (Asia) L.L.C. US$350 million for serious regulatory failures over 1Malaysia Development Berhad’s bond offerings

Useful resources

Publications from other organizations:

Risk, scenarios and reporting: Three key areas for accountants to advance climate action by IFAC
Climate risk and business resilience: How the profession can help by AICPA
Pandemic resilience starts with compassion, accountants say from Journal of Accountancy
7 ways finance leaders can improve their emotional intelligence from Financial Management
Storytelling can make or break your leadership from Harvard Business Review
Insider threat security: Is your business at risk? from BizTech

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