 |
|
Your fortnightly technical updates newsletter (12 April 2023)
|
|
|
|
 |
|
Members' Handbook
|
|
|
|
Update No. 289 includes the following updates to Volume III:
- Editorial revision to the Hong Kong Quality Control/Management, Auditing, Review, Other Assurance, and Related Services Pronouncements to align with the 2021 International Auditing and Assurance Standards Board Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements and other housekeeping editorial changes.
- Relocation of PN 850 (Revised 2022), Reporting on Flag Days, General Charitable Fund-raising Activities and Solicitation of Signed Authorisation Forms Covered by Public Subscription Permits issued by the Social Welfare Department from Section 2 to Section 1 of Volume IIII as a result of the new and revised quality management standards that are effective for engagements beginning on or after 15 December 2022.
|
|
|
|
|
Standard setting
|
|
|
|
 
|
 |
|
IASB March 2023 podcast
|
|
In this podcast, the International Accounting Standards Board (IASB) Chair, IASB Vice-Chair and Executive Technical Director highlight the topics discussed at the March IASB meeting. These include climate-related risks in the financial statements, post-implementation review of International Financial Reporting Standard 15 Revenue from Contracts with Customers, primary financial statements, business combinations - disclosures, goodwill and impairment, subsidiaries without public accountability: disclosures, and the equity method.
|
|
Webcasts: Developments in the Dynamic Risk Management project
|
|
IASB technical staff have produced two new webcasts on developments and tentative decisions made by the IASB in the Dynamic Risk Management project.
Since the series of webcasts that was published on the project in October 2022, the two new webcasts focus on:
- The current net open risk position
- The IASB’s redeliberation on the performance assessment
|
 |
|
Institute submission
|
|
The Institute has submitted its comment letter on the International Auditing and Assurance Standards Board (IAASB) Consultation Paper, The IAASB’s Proposed Strategy and Work Plan for 2024 – 2027.
|
|
The Institute’s Auditing and Assurance Standards Committee meeting minutes
|
|
Minutes of the 406th meeting is now available.
|
|
HKICPA resource centre
|
|
Access resources and publications at the Institute’s Resource Centre to Auditing and Assurance for technical publications which help you keep updated with the auditing and assurance pronouncements.
|
 |
|
Invitation to comment
|
|
The Institute is seeking comments on the following publications by the International Ethics Standards Board for Accountants (IESBA):
- Exposure Draft Proposed Revisions to the International Code of Ethics for Professional Accountants (Including the International Independence Standards) addressing Tax Planning and Related Services by 18 April.
- Consultation Paper Proposed IESBA Strategy and Work Plan, 2024 – 2047, by 7 June.
|
|
HKICPA resource centre
|
|
Access resources and publications at the Institute’s Resource Centre to the Code which will keep you updated on the latest ethics pronouncements
|
 |
|
ISSB decides to prioritize climate-related disclosures to support initial application
|
|
At its meeting on 4 April 2023, the International Sustainability Standards Board (ISSB) decided that it will complement its package of transitional reliefs to support companies applying the ISSB’s first two Standards - IFRS S1 General Sustainability-related Disclosure Requirements and IFRS S2 Climate-related Disclosures.
The relief will enable companies to focus initial efforts on ensuring they meet investor information needs around climate change. It means companies can prioritize putting in place reporting practices and structures to provide high-quality, decision-useful information about climate-related risks and opportunities in the first year of reporting using the ISSB Standards. Companies will then need to provide full reporting on sustainability-related risks and opportunities, beyond climate, from the second year.
|
|
Supplementary ISSB Update April 2023
|
|
The ISSB has published a summary of discussions at its supplementary April meeting.
|
|
IESBA and IAASB highlight commitment to deliver on recommendations in new IOSCO report on a global assurance framework for sustainability-related corporate reporting
|
|
The IESBA and IAASB welcomed the report released by the International Organization of Securities Commissions (IOSCO) on developing a global assurance framework for sustainability-related corporate reporting. The IESBA and IAASB commented that the IOSCO report reflects extensive research and feedback from key stakeholders and stated that the report calls for timely development of ethics and assurance standards for sustainability reporting by the IESBA and the IAASB, respectively.
Both the IESBA and IAASB will issue public consultations later this year on standards for sustainability ethics and assurance, respectively. Both boards plan to finalize their respective standards in 2024. The IOSCO called for widespread outreach to ensure the standards meet the needs of users and benefit from diverse stakeholder input, among other recommendations. Both boards emphasize their commitment to address key considerations and recommendations presented in the IOSCO report.
|
|
|
|
|
Advocacy and practice development
|
|
|
 |
|
Institute submission on SFC’s consultation on the Proposed Requirements for Operators of VATPs
|
|
The Institute issued a submission in response to the Consultation Paper issued by the Securities and Futures Commission, seeking feedback on proposals to allow licensed virtual asset trading platform (VATP) operators to serve retail investors.
In principle, the Institute does not object to allowing licensed VATP operators to extend their services to retail investors, provided that there are sufficient robust investor protection measures in place and, in this regard, the submission suggests some additional safeguards. The submission also responds to other questions raised in the consultation paper. Please refer to our submission for details.
|
|
Invitation to comment
|
|
SFC consults on proposed subsidiary legislation for implementing a USM in Hong Kong
|
|
On 27 March, the SFC issued a consultation paper to seek comments on the proposed subsidiary legislation for implementing an uncertificated securities market (USM) in Hong Kong. The proposed subsidiary legislation includes two new sets of rules:
- the Securities and Futures (Uncertificated Securities Market) Rules
- the Securities and Futures (Approved Securities Registrar) Rules
Please refer to the press release for details.
The deadline for responding to the consultation paper is 30 June. Members are welcome to submit any views or comments on the consultation paper to the Institute, quoting their membership number and contact details, to the Advocacy & Practice Development on or before 31 May.
|
|
FSTB introduces a Company Re-domiciliation Regime
|
|
On 31 March, the Financial Services and the Treasury Bureau (FSTB) issued a consultation paper to seek views on the introduction of a company re-domiciliation regime. Please refer to the FSTB’s website for details.
The deadline for responding to the consultation paper is 31 May. Members are welcome to submit any views or comments on the consultation paper to the Institute, quoting their membership number and contact details, to the Advocacy & Practice Development on or before 5 May.
|
 |
|
Profits tax filing
|
|
The Inland Revenue Department (IRD) issued 2022/23 profits tax returns to corporations and partnership businesses on 3 April 2023. Particular attention should be paid to the following:
- All corporations and businesses, regardless of the amount of their gross income and the mode of return filing, must submit profits tax returns together with all supporting documents (including financial statements and tax computation). This includes small corporations and businesses with gross income not exceeding HK$2 million, which will no longer enjoy the exemption from furnishing supporting documents when filing their profits tax returns.
- All relevant supplementary forms and other forms required to be furnished with the profits tax return must be e-filed under eTAX.
- If a taxpayer chooses not to e-file the return, the taxpayer has to print and sign a paper Control List for the supplementary forms and/or other forms e-filed and then furnish the signed Control List together with the profits tax return and supporting documents in paper form.
The IRD has gradually enhanced the functions of electronic tax filing to promote tax digitization, and enhance filing efficiency, reliability and accuracy. Enhanced voluntary e-filing services for profits tax returns have been launched alongside with the following new features:
- All corporations and businesses can e-file profits tax returns under eTAX for the year of assessment 2022/23. They only need to fill in simplified e-returns online, upload the required completed forms and the supporting documents, prepared in Inline eXtensible Business Reporting Language (iXBRL) format, then e-sign and submit the returns through the eTAX services.
- Apart from full electronic filing mode, semi-electronic filing mode is also available under the enhanced eTAX services.
- For full electronic filing or semi-electronic filing of profits tax returns, the taxpayer is required to submit the supporting documents (i.e. financial statements and tax computation) in iXBRL format. To help taxpayers prepare the required iXBRL data files, IRD iXBRL Data Preparation Tools are available to download on the IRD website free of charge.
Taxpayers are encouraged to e-file their profits tax returns through the enhanced eTAX electronic services.
Benefits of e-filing
- Minimizing errors in tax filing
- Reducing the turnaround time for signature or authorization arrangement
- Enhancing the efficiency, reliability and accuracy
- Providing round-the-clock service
Please visit the IRD website for more details.
|
|
Electronic filing of Employer’s Return - easy, secure and environment-friendly
|
|
Employer’s Returns of Remuneration and Pensions (Form BIR56A) for the year ended 31 March 2023 were issued on 3 April. Employers are required to complete and file the return to the IRD within one month together with the Form IR56B for reporting of remuneration paid to employees.
Employers can file the employer’s returns on-line through the e-TAX platform. The IR56 Forms Preparation Tool can be used to prepare the data file of annual Form IR56B for uploading to the IRD via the Online Mode or the Mixed Mode. To facilitate employers submitting the data file via the Mixed Mode, commencing from this year, only the 1-page (i.e. Cover Page) Control List generated from the system is required to be signed and submitted by each employer, which replaces the previous requirement of signing on each and every page of the Control List. In addition, to tie in with employers preparing early for the submission, the IR56 Forms Preparation Tool can be used to prepare the data file of annual IR56B starting from 1 March each year.
Please visit the IRD website for details.
|
|
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:
|
|
Anti-money laundering (AML) notices and news
|
|
AML notices:
Other AML news:
|
|
|
|
|
Useful resources
|
|
|
|
Publications from other organizations
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
This email together with the file(s) transmitted is intended solely for addressee(s) only and may contain confidential or privileged information. If you received this email in error, please contact the sender and delete it together with its attachment(s) from your computer(s). You should note that the views expressed in this email are those of the author and do not necessarily represent those of the Institute. The recipient should check this email and all attachments for the presence of virus. The Institute will not accept liability for any damage caused by any viruses transmitted with this email.
|
|
Manage communication preferences | Privacy policy | Personal information | Contact us
|
|
Copyright © 2023 Hong Kong Institute of CPAs. All rights reserved.
|
|
|
|
|
|
|
