Standard setting
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List of new and amended HKFRS
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The Institute has published the list of new and amended Hong Kong Financial Reporting Standards (HKFRS) that are applicable to accounting periods beginning on or after
1 January 2023.
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Institute live webinar: Accounting considerations arising from abolition of MPF-LSP offsetting mechanism in Hong Kong
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The Government of the HKSAR gazetted the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 (the Amendment Ordinance) in June 2022. The Amendment Ordinance will eventually abolish the statutory right of an employer to reduce its long service payment (LSP) and severance payment payable to a Hong Kong employee by drawing on its mandatory contributions to the mandatory provident fund (commonly known as the ‘offsetting mechanism’). Based on the Institute’s guidance issued in July 2023, the abolition is likely to have an immediate impact on the financial statements of entities with a significant employee base in Hong Kong. This is notwithstanding that the net LSP position of an entity may have been immaterial to its financial statements in the past. The live webinar on 22 August will go through the above-mentioned Institute’s guidance and highlight the key financial reporting considerations in relation to the abolition.
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Reminder: Institute roundtable on IASB’s Request for Information (RFI) on Post-implementation Review of IFRS 9 Financial Instruments - Impairment
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Members and other parties who are interested to share their views on the RFI in the upcoming virtual roundtable organized by the Institute are reminded to reserve their place by 8 August.
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Live webinar: Workshop for Audit Mangers/ Seniors In-Charge
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Join the online workshop for audit managers/ seniors in-charge over five evenings (30 August, 1, 7, 11 and 13 September) which focuses on advanced auditing topics such as risk assessment procedures, auditing accounting estimates, going concern assessment etc. To be eligible for enrolment, participants should have more than two years of auditing experience with fundamental knowledge of auditing.
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The Institute’s Auditing and Assurance Standards Committee meeting
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Minutes of the 409th meeting is now available.
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What you need to know about ISSA 5000
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The International Auditing and Assurance Standards Board (IAASB) will soon issue the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation. Learn more in this short video from IAASB.
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Latest on IAASB projects
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Learn the latest updates on the IAASB’s projects such as the proposed changes to International Standard on Auditing (ISA) 500, Audit Evidence; the proposed ISA for Audits of Financial Statements of Less Complex Entities, etc.
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Professional judgement in audit
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The Institute of Chartered Accountants in England and Wales’ (ICAEW) new resource hub on professional judgement helps you develop your skills in approaching difficult judgements.
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ICAEW audit and assurance resources
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The July issue of ICAEW’s Audit & Beyond discusses tips to address barriers to the exercise of professional judgement; key changes of the new group audit standards; how to address corporate fraud risk, etc.
Institute members can subscribe to ICAEW’s International Standards platform for free to access a wide range of resources on auditing and ethics.
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Case study in ethical use of AI today
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The International Ethics Standards Board for Accountants (IESBA) has published a recording of a presentation which discusses the ethical consideration in the use of artificial intelligence (AI) with reference to the IESBA International Code of Ethics for Professional Accountants (Including International Independence Standards).
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IESBA June meeting
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The meeting highlights and decisions of IESBA’s June meeting is now available.
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IFRS Sustainability Disclosure Standards endorsed by international securities regulators
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The International Organization of Securities Commissions (IOSCO) has announced its endorsement of the International Sustainability Standards Board’s (ISSB) IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures following its comprehensive review of the Standards. Erkki Liikanen, Chair of the IFRS Foundation Trustees, delivered a speech on the endorsement of ISSB Standards by the IOSCO.
The IOSCO has called on its 130 member jurisdictions—capital markets authorities that regulate more than 95% of the world’s securities markets—to consider how they can incorporate the ISSB Standards into their respective regulatory frameworks to deliver consistency and comparability of sustainability-related disclosures worldwide.
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IFRS Foundation publishes comparison of IFRS S2 with the TCFD Recommendations
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The IFRS Foundation has published a comparison of the requirements in IFRS S2 Climate-related Disclosures and the Task force on Climate-related Financial Disclosures (TCFD) recommendations.
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Institute Responds to HKEX Consultation on Climate-related Disclosures
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In its response to Hong Kong Exchanges and Clearing (HKEX)’s consultation paper on climate-related disclosures, the Institute is generally supportive of HKEX’s efforts to introduce mandatory climate-related disclosures under the ESG reporting framework, based on the requirements of IFRS S2, which was issued in June this year by the International Sustainability Standards Board (ISSB). As HKEX’s consultation paper was issued before the final ISSB standards were published, the Institute’s submission suggests that HKEX should explain how it will update its proposals following issuance of the standards. The Institute notes that there are several key differences between HKEX’s proposals and IFRS S2 and suggests that there should be a plan to gradually remove the differences and adopt the additional requirements of IFRS S2.
The submission also encourages HKEX to re-consider adopting IFRS S1, as this is a foundational document that sets out general requirements and principles for all types of ESG and sustainability information, not just climate-related disclosures, pointing out that, without adopting IFRS S1, the Hong Kong capital market may not be judged to be “ISSB compliant”. Finally, given the practical difficulties that some listed companies may face with implementing the ISSB standards, the Institute highlights the need for an appropriate market infrastructure to support implementation.
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