NAVIGATION

HKFRS SDS Workshop Series

The Roadmap on Sustainability Disclosure in Hong Kong published by the Financial Services and the Treasury Bureau sets out Hong Kong’s approach to requiring publicly accountable entities (PAEs) to adopt the International Sustainability Standards Board (ISSB) Standards. This Roadmap establishes a clear pathway for large PAEs to fully adopt the ISSB Standards by 2028.

In particular, the Roadmap indicates that Main Board issuers will be the first impacted by the New Climate Requirements specified in the Listing Rules, with the mandate eventually extending to include both listed and non-listed PAEs applying HKFRS Sustainability Disclosure Standards (HKFRS SDS) – specifically, HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures by 2028.

To prepare our stakeholders for the implementation of the HKFRS SDS, the Institute has planned a series of workshops. In the first two workshops, speakers will explore key aspects and share insights on practical applications, using illustrative examples and case studies.

8 May: Key principles in HKFRS S1 & Stakeholder Engagement
21 May: Climate risk and opportunities, Scenario analysis & Anticipated Financial Effects

Institute live webinar: Accounting considerations related to ESG and climate-related risks

Join our upcoming live webinar on 9 June to explore the evolving landscape of ESG and climate-related risks in financial reporting. This webinar will provide an overview and discussion on:

Emerging topics related to ESG and climate risks, such as climate-related commitments, impairment testing, emissions schemes and green bonds, along with the application of relevant IFRS Accounting Standards in some common scenarios;
The International Accounting Standards Board (IASB) Exposure Draft Climate-related and Other Uncertainties in the Financial Statements;
Connectivity between financial and sustainability reporting; and
Relevant agenda decisions published by the IFRS Interpretations Committee.

The Institute’s Financial Reporting Standards Committee meeting minutes

Minutes of the February 2025 meeting is now available.

IASB March 2025 podcast & update

The IASB podcast, highlighting preliminary decisions of the IASB at its March 2025 meeting, and a summary of the meeting, are now available.

IFRS for SMEs Accounting Standard March 2025 Update

The IFRS for SMEs Accounting Standard March Update is now available. The Update highlights the resources to support implementation of the third edition of the IFRS for SMEs Accounting Standard, which include educational modules, webcasts and podcast series.

IFRS Interpretations Committee March 2025 Update

The IFRS Interpretations Committee Update provides a summary of discussions at its March 2025 meeting.

Comment letter

The Institute has submitted its comment letter on the International Auditing and Assurance Standards Board (IAASB) Post-Exposure Consultation: Invitation to Comment Before the IAASB Finalizes the Narrow Scope Amendments to the ISQMs and ISAs as a Result of the Revisions to the Definitions of Listed Entity and Public Interest Entity in the IESBA Code.

Workshop for audit managers/seniors in-charge/new auditors – re-run

Join the Institute’s audit workshops to enhance your auditing knowledge:

Workshop for Audit Mangers/ Seniors In-Charge (14, 15 and 21 May): This workshop will focus on advanced auditing topics such as risk assessment procedures, auditing accounting estimates and going concern assessment.
Workshop for New Auditors (13, 19 and 20 June): Designed to provide participants with the core concepts and practical skills essential for financial statement audits, this workshop will also share experiences relevant to new auditors.

HKICPA Sustainability Assurance Webinar: Overview of HKSSA 5000, General Requirements for Sustainability Assurance Engagements

Join this insightful webinar on 12 June, which will provide a comprehensive overview of the new assurance standard, HKSSA 5000, covering the following key aspects:

Fundamental principles and concepts
Engagement acceptance and continuance
Group sustainability assurance engagements and the use of the work of others

IAASB publication on first-time implementation guide for the ISA for LCE

The International Auditing and Assurance Standards Board (IAASB) has released the First-Time Implementation Guide for the ISA for LCE. This guide provides an overview of the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) concepts, structure and format. It offers step-by-step insights into each part of the standard with examples and comparisons to other ISAs, equipping auditors with the tools needed for effective implementation of the ISA for LCE.

Reminders for Auditors’ Reporting on Licensed Corporations

The Accounting and Financial Reporting Council (AFRC) has published the Checkpoint - Reminders for Auditors’ Reporting on Licensed Corporations, which provides an overview of their 2024 inspection findings relating to licensed corporation (LC) audits and assurance engagements. This publication identifies ongoing audit quality concerns and recommends good practices to improve quality of work, along with key emerging risks and opportunities for LC auditors.

IFIAR publication on use of technology in the audit

The International Forum of Independent Audit Regulators (IFIAR) 2025 report on Use of technology in audits – observations, risks and further evolution highlights findings related to the use of automated tools and techniques (ATTs) observed in IFIAR Member inspections .The report includes key messages arising from discussions with the Global Public Policy Committee networks.

The Institute’s Auditing and Assurance Standards Committee meeting minutes

Minutes of the 423rd meeting are now available.

IAASB meeting minutes

Minutes of the 147th meeting are now available.

Invitation to comment

The Institute is seeking comments on the International Ethics Standards Board for Accountants (IESBA) Consultation Paper: Collective Investment Vehicles and Pension Funds by 30 May 2025. The consultation seeks views on auditor independence matters pertaining to audits of Investment Schemes when these Schemes involve external parties. It also aims to inform the IESBA’s consideration of whether its International Independence Standards are sufficiently clear and fit for purpose for such audits.

IESBA meeting summary

Highlights to the IESBA meeting held in March 2025 are now available.

New webcast series— Sustainability-related risks and opportunities and the disclosure of material information

In November 2024, the IFRS Foundation published a guide to help companies in identifying and disclosing material information about sustainability-related risks and opportunities that could reasonably be expected to affect their cash flows, access to finance or cost of capital over the short, medium or long term. To provide further support, the IFRS Foundation has launched a new webcast series to explain:

the definition of material information and its application in the ISSB Standards;
the meaning of "sustainability-related risks and opportunities that could reasonably be expected to affect an entity’s prospects", and how to identify such risks and opportunities; and
how to identify and disclose material information about these risks and opportunities.

IFRS Foundation stakeholder event—disclosures about transition plans

IFRS S2 Climate-related Disclosures requires that information be disclosed if an entity has a transition plan. To support this requirement, the IFRS Foundation is developing a guidance document that builds on the disclosure-specific materials authored by the Transition Plan Taskforce (TPT). A virtual stakeholder event was held on 14 March to gather information from stakeholders to inform the work to tailor the TPT materials. Click here to access the recordings and the event materials.

ISSB March 2025 podcast & update

In this podcast, the ISSB Chair and Vice-Chair share progress on guidance regarding transition plan disclosures. They also discuss their key takeaways from the March 2025 ISSB meeting and the upcoming educational materials and events. In addition, a summary of the March 2025 meeting is now available.

SFC Publishes Consultation Paper on Proposed Amendments to the Securities and Futures (Stock Market Listing) Rules, Cap. 571V (SMLR)

Following its comprehensive review of the SMLR, the SFC published a consultation paper on 28 March, outlining proposed amendments to enhance regulatory efficiency in Hong Kong’s listing market and providing broader protection for the investing public. Key provisions introduced include:

imposing continuing conditions on listing applicants, allowing a listing application to proceed on condition that, after listing, the issuer would be required to observe or comply with those conditions
imposing post-listing conditions on listed issuers which will provide an alternative action to a trading suspension
streamlining the procedures for resumption of dealings
allowing an issuer aggrieved by the SFC’s decisions to seek a full merits review by the Securities and Futures Appeals Tribunal

The submission deadline is 23 May. Please refer to the SFC’s news announcement for details.

HKEX announced listing of Asia’s first Single Stock Leveraged and Inverse Products (L&I Products)

On 24 March, HKEX announced the listing of Asia’s first Single Stock L&I Products in Hong Kong. The new listed Single Stock L&I Products provide directional exposure to daily returns of highly liquid stocks from overseas exchanges, offering investors more tools to enhance returns and manage risks. HKEX noted that Exchange Traded Products (ETPs), including L&I Products, remain one of the fastest-growing segments in HKEX’s markets, growing to a record market capitalization of $463 billion in 2024. Additionally, the average daily turnover of ETPs in the first two months of 2025 reached $36 billion (up 89% from a year earlier).

Bankruptcy and Companies Legislation (Miscellaneous Amendments) Ordinance 2023 (Commencement) Notice 2025

The Official Receiver’s Office (ORO) has issued a letter for the attention of insolvency practitioners (IPs).

The letter reminds IPs that 14 July 2025 is designated for the commencement of all provisions of the Bankruptcy and Companies Legislation (Miscellaneous Amendments) Ordinance 2023 (Ordinance) that have not yet commenced. Part 2 of the Ordinance deals with amendments to the Bankruptcy Ordinance (Cap. 6), the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) and their subsidiary legislation relating to the electronic submission of certain documents to the Official Receiver.

For further details, please refer to the circular linked above. Any questions should be directed to Patrick Chan of the ORO. Please also refer to the press release for details.

Maximum amount of ex gratia payment on severance payment from Protection of Wages on Insolvency Fund raised

The level of ex gratia payment granted from the Protection of Wages on Insolvency Fund (the Fund) to employees who are owed severance payment by their insolvent employers has been increased.

Following a resolution by the Legislative Council under the Protection of Wages on Insolvency Ordinance on 20 March, the maximum amount of ex gratia payment on severance payment under the Fund has been raised from $100,000 plus 50% of any excess entitlement to $200,000 plus 50% of any excess entitlement. This adjustment took effect on 21 March and applies to severance payment where the liability for payment arises on or after that date.

Electronic Filing of Employer’s Return - easy, secure and environment-friendly

The Employer’s Return of Remuneration and Pensions (Form BIR56A) for the year ended 31 March 2025 were issued on 1 April. Employers are required to complete and file the return to the Inland Revenue Department (IRD) within one month, along with the Form IR56B for reporting of remuneration paid to employees.

Employers can file the employer’s returns online by using "iAM Smart+" or eTAX account. The IR56 Forms Preparation Tool can be used to prepare the data file of annual Form IR56B for uploading to the IRD via either Online Mode or Mixed Mode. For those using Mixed Mode submission, after uploading of data file(s), employers only need to submit the duly signed paper form BIR56A and the cover page (i.e. the first page) of the Control List generated by the system to complete the submission process. In addition, to tie in with employers in 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:

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:

Accounting has a Gen Z problem. It's time for new talent strategies from CFO.com
W.A.I.T. before your speak - and make every conversation more impactful from Entrepreneur.com
Do I need a mentor - and where do I start? from Financial Management
Doing accounts receivable aging reports in Excel from Journal of Accountancy
Making AI work for workers by McKinsey & Company

Disclaimer: Some sections contain external links and information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy or content of the external site, and the content does not necessarily represent the views of the Institute. We recommend using your discretion when visiting these links.

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