Since last year’s annual accounting update, the world has truly begun to move on from the COVID-19 pandemic and the massive disruptions in its wake. Standard setters, including the Hong Kong Institute of CPAs, have been hard at work continuing initiatives to support the adoption of international standards and ensure their effectiveness.
In March this year, the International Sustainability Standards Board (ISSB) published its first two proposed standards for public consultation, IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information (IFRS S1) and IFRS S2 Climate-related Disclosures (IFRS S2). The 120-day consultation period ended on 29 July, and the ISSB has since met to discuss the comments received as well as proposing re-deliberations in September and October. The ISSB is now aiming to publish the IFRS S1 and IFRS S2 as early as possible in 2023.
These standards will be a major step forward in the effort to establish a global baseline for sustainability and climate reporting to provide investors with consistent, comparable sustainability-related data about what companies are doing to address the urgent issue of climate change. The Green and Sustainable Finance Cross-Agency Steering Group, which is co-chaired by the Hong Kong Monetary Authority and the Securities and Futures Commission, and consists of members including Hong Kong government bureaux and its regulators, has already stated its support for the efforts to develop the new standards and will consider how the standards could potentially be adopted for local use.
The accounting profession is in a prime position to lead the implementation of the IFRS Sustainability Disclosure Standards, and it is imperative that CPAs are informed of the latest developments. With the growing demand for clear sustainability disclosures from stakeholders, these new standards will certainly be a defining feature for the new chapter of corporate reporting.
About the conference
Don’t miss out on this year’s Annual Accounting Update conference, which will once again be held virtually. The event will be held on Saturday, 19 November from 9:00 a.m. to 1:00 p.m. and will provide an annual update highlighting the latest trends and developments of financial reporting standards. The virtual conference will begin with a presentation from me on how financial reporting standards are set, including a review of the Institute’s standard setting function and support offered to stakeholders, as well as the progress of some major standard setting projects.
After my presentation, Byron Khoo FCPA, Partner at EY, will talk about the standards that will be effective in 2023 and 2024, including Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); Definition of Accounting Estimates (Amendments to I AS 8); Deferred Tax related to Assets and Liabilities arising from a Single Tran saction (Amendments to IAS 12) in 2023; as well as Classification of Liabilities as Current or Non-current (Amendments to IAS 1) and Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) in 2024.
Following a short break, Mateusz Lasik, Partner at Deloitte China, will discuss application issues of HKFRS 9 Financial Instruments , HKFRS 15 Revenue from Contracts with Customers and HKFRS 16 Leases, and common pitfalls identified through the recent Accounting and Financial Reporting Council inspections.
We will then focus on the latest developments in sustainability reporting presented by Serene Seah-Tan, Partner at KPMG. This will include the latest requirements in Hong Kong, the latest developments of the ISSB, including preliminary feedback on the IFRS S1 and IFRS S2, and its upcoming agenda consultation, as well as the impact of climate-related matters on financial
statements, and more.
As with recent years, the conference will end with a Q&A session where the audience will be able to ask our experts any questions they might have on topics covered during the day. Our goal
is to give participants a good understanding of how standards are set now, and how they are likely to develop in the future. Visit the Institute’s website for the enrolment details.
Gary Stevenson CPA, Technical Partner and Head of HKFRS/IFRS at RSM Hong Kong, is the Chairman of the Institute’s Financial Reporting Standards Committee. He has more than 20 years of technical experience in accounting, auditing, ethics and independence, and quality assurance roles. He currently specializes in HKFRS/IFRS supporting RSM Hong Kong’s capital markets audit and accounting advisory practices.