TechWatch 198

Circular on reporting under Section 20 of the Product Eco-responsibility (Regulated Electrical Equipment) Regulation (Cap. 603B)

Suppliers registered with the Environmental Protection Department (EPD) to distribute regulated electrical equipment (REE) are required to submit periodic returns to the EPD on the quantities of REE distributed and used for the first time, and the quantities of recycling labels within the reporting periods covered by the returns. Suppliers are also required to submit an audit report to the EPD every year in respect of the returns submitted. The audit report must be prepared by a CPA holding a practising certificate under the Professional Accountants Ordinance (Cap. 50).

The EPD has released a circular providing general guidance to practising members of the Institute for the reporting as mentioned above.

Invitations to comment

The Institute is seeking comments on:

• The International Auditing and Assurance Standards Board’s (IAASB) consultation paper on Proposed Strategy for 2020-2023 and Work Plan for 2020-2021 by 4 May
• The IAASB’s consultation paper on Extended External Reporting by 21 May
• The IAASB’s exposure drafts on Quality Management for Firms and Engagements by 24 May
• The International Ethics Standards Board for Accountants’ exposure draft on Proposed Revisions to Part 4B of the Code to Reflect terms and Concepts Used in International Standard on Assurance Engagements 3000 (Revised) by 27 May

Invitation to observe meetings of the HKIISG

Register to observe meetings of the Hong Kong Insurance Implementation Support Group (HKIISG) which discusses hot topics on HKFRS 17 Insurance Contracts. Meeting schedule, papers and summaries can be found on the Institute’s website.

Minutes

Minutes of the 373rd meeting of the Auditing and Assurance Standards Committee.

Institute submission

The Institute commented on the IAASB’s exposure draft, Proposed International Standard on Related Services 4400 (Revised), Agreed-Upon Procedures Engagements.

Professional accountants in business

IMA enhanced management accounting competency framework
With technology redefining the role of a management accountant and significantly changing the business landscape and the management accounting profession at an unprecedented speed, the Institute of Management Accountants (IMA) has released an enhanced Management Accounting Competency Framework. The enhanced framework reflects the skills management accountants need to remain relevant and be future-ready and serves as a guide for skills assessment, career development and talent management.

The enhanced framework identifies six domains of core knowledge, skills, and abilities that finance and accounting professionals need to remain relevant in the digital age and perform their current and future roles effectively:

• Strategy, planning and performance – lead strategic planning performance, assess current state of the business and plan for the future

• Reporting and control – measure and report business/organization’s performance in compliance with relevant standards and obligations
• Technology and analytics – manage data to enhance a company’s analytics and embrace technology to move the organization forward
• Business acumen and operations – work cross-functionally across the business to transform operations throughout the organization
• Leadership – inspire teams to achieve personal and organizational goals
• Professional ethics and values – demonstrate professional values, ethical behaviours and legal compliance essential to an ethical and sustainable career/business

Corporate finance

HKEX’s guidance on reasons for rejected listing applications in 2018

On 22 March, the Hong Kong Exchanges and Clearing (HKEX) published guidance on reasons for rejected listing applications in 2018, highlighting the following:

• The HKEX’s tightened scrutiny of commercial rationale for listing leads to a significant increase in rejected listing applications
• Rejections were not sector specific. The focus, in fact, was on whether the rationale for listing was supported by the applicant’s expected growth and hence the need for funding
• Results have helped maintain market quality and the HKEX will continue exercising discretion to assess suitability

The HKEX advised that the applicant’s commercial rationale for listing is a primary focus of assessing its suitability. In order to maintain market quality, more consideration is also given to whether the proposed use of proceeds and funding needs are consistent with its business strategies and future plans. Refer to the press release for details.