Update no. 270 includes editorial revisions to:
- Code of Ethics for Professional Accountants (code of ethics) to align with the 2021 edition of the Handbook of International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA handbook) and other housekeeping editorial changes, including updating the references to local legislations and regulations in Chapter C.
- Revisions to the Non-Assurance Services Provisions of the Code and Revisions to the Fee-related Provisions of the Code to align with the IESBA handbook.
The Institute has submitted its comment letters on the following International Accounting Standards Board (IASB) consultation documents:
- Subsidiaries without Public Accountability: Disclosures
- Post-implementation Review of IFRS 9 – Classification and Measurement
Accounting Considerations for a Special Purpose Acquisition Company
The Institute has issued the publication Accounting Considerations for a Special Purpose Acquisition Company (SPAC) which highlights certain key accounting considerations relevant to a typical SPAC throughout its lifecycle.
Webcasts: IASB’s Exposure Draft Supplier Finance Arrangements
In these webcasts, an IASB member introduces the background to reverse factoring and other supplier finance arrangements. He then illustrates how the IASB’s proposals aim to enhance the transparency of supplier finance arrangements and why it is important for stakeholders to respond to these proposals.
January IASB podcast and updates
The IASB podcast, with its chair and vice-chair highlighting the projects discussed during the January meeting, and a summary of the January meeting, are now available.
January IFRS Interpretations Committee podcast
The IFRS Interpretations Committee podcast, highlighting the committee’s key activities during the last quarter of 2021, is now available. Topics discussed include economic benefits from use of a windfarm, principal versus agent: software reseller, negative low emission vehicle credits, and lease liability in a sale and leaseback.
Auditing and assurance
The Institute has submitted its comment letter on the International Auditing and Assurance Standards Board’s (IAASB) proposed standard for audits of financial statements of less complex entities.
Institute’s live virtual workshops
The New Quality Management Standards Series in March and April begins with a workshop on 8 March, covering key requirements and applications in practical scenarios, and illustrated with examples on how small and medium practitioners implement resources to meet the new requirements.
Preparing for the new quality management standards
The last article of the series issued by the International Federation of Accountants on International Standard on Quality Management (ISQM) 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements sets out factors to be considered when designing and performing monitoring activities. For example, assessments given to the quality risks, design of risk responses, and any changes that may have occurred in the system of quality management. The article also emphasizes that it is important for firms to evaluate findings and identify deficiencies for designing and implementing remediation measures to establish and maintain an effective quality management system.
The IAASB latest eNews is now available, highlighting various activities going on in and around the IAASB.
IAASB conforming and consequential amendments resulting from new and revised quality management standards
The IAASB released further conforming and consequential amendments to the IAASB’s standards resulting from the new and revised quality management standards. The conforming amendments remove actual or perceived inconsistencies between the IAASB’s suite of standards and the quality management standards, effective from 15 December 2022.
IAASB head on audit’s role
An article on Compliance Week explores the IAASB’s current and future efforts to improve audit quality, the biggest challenges to audit confidence today, and what emerging issues might be around the corner.
IAASB digital technology market scan
The second market scan from the IAASB’s Disruptive Technology team explores application programming interface (API) access to external data sources for enriched analysis. It discusses what an API is and why it is important, as well as the latest developments on this topic and possible implications for the IAASB.
Common threads across audit committees
Despite pandemic-related concerns about the ability of auditors to work effectively, most audit committee members said in a survey by the Centre for Audit Quality and Deloitte that audit quality either increased or stayed the same over the past year. The survey results also reveal top areas of focus on the audit committee’s agenda, and where audit committees are when it comes to environmental, social and governance issues.
ICAEW audit and assurance resources
The Institute of Chartered Accountants in England and Wales (ICAEW) has the following resources that may be of interest to members:
- New resource hub on articles, helpsheets and other practical resources and tools to support the implementation of International Standard on Auditing 540 (Revised).
- Audit and Beyond February for technical articles on the new quality management standards etc.
- An online event series titled Implementing ISQMs designed to help small and medium practices to implement the new quality management standards.
Institute members can also subscribe to ICAEW’s International Standards for free to access a wide range of resources on auditing and ethics.
Institute’s webinar on revised non-assurance services and fee-related provisions of the code of ethics
Join the webinar on 9 March, which will deep dive into specific provisions of the revised non-assurance services and fee-related independence standards of the code of ethics. The revisions significantly strengthen the guardrails around auditor independence in two important areas that have the potential to create incentives influencing auditor behaviour – non-assurance services provided to audit clients and fees. They will come into effect in December 2022.
Institute’s code of ethics webpage
Visit the Institute’s new webpage on the code of ethics which is designed to help members uphold professionalism. The page includes links to educational material and other relevant resources.
FAQ on revised fee-related provisions of the code of ethics
The staff of the IESBA released a set of frequently asked questions (FAQ) on the recently revised fee-related provisions of The International Code of Ethics for Professional Accountants (including International Independence Standards). It highlights, illustrates or explains aspects of the revised fee-related provisions and thereby assists in their proper application.
Ethical technology in the workforce
An article by Deloitte shares how organizations should prioritize ethical technology in the workforce, and why it’s not just a “big tech” company prerogative.
Appointment of the ISSB Vice-Chair
The Trustees of the IFRS Foundation announced the appointment of Sue Lloyd as Vice-Chair of the International Sustainability Standards Board (ISSB), effective 1 March. Lloyd will step down from her current role as Vice-Chair of the IASB. In addition, Janine Guillot, current Chief Executive Officer of the Value Reporting Foundation, has been appointed as a special advisor to the ISSB Chair, effective 1 February.
Interview with the ISSB Chair
Emmanuel Faber was appointed as the inaugural Chair of the ISSB in December 2021. In an interview, he discusses what attracted him to the role and his ambitions for the ISSB.
HKEX finalizes operational model for derivatives holiday trading
On 6 January, Hong Kong Exchanges and Clearing Limited (HKEX) published its consultation conclusions on derivatives holiday trading, finalizing the underlying operational model for non-Hong Kong dollar denominated futures and options trading and clearing services on Hong Kong public holidays.
New online service for creditors: Submission of Proof of Debt
For bankruptcy/winding-up cases in which the Official Receiver (OR) acts as the trustee/liquidator, creditors can use the online service to submit proof of debt to the OR by completing the proof of debt form, uploading documents to substantiate the debt, signing the proof of debt form by “iAM Smart” or recognized digital certificates, and settling the prescribed fee by credit cards or PPS online. Please refer to the Official Receiver’s Office’s website for details.
Institute announces proposals for the 2022-23 budget
The Institute held an online media briefing on 18 January, hosted by the President, the chair of the Taxation Faculty Executive Committee (TFEC) and the convenor of the TFEC’s Budget Proposals Sub-committee, to announce its tax policy and budget proposals for 2022-23. Under the title, Building a Sustainable Future for Hong Kong, its Economy and Community, the proposals include a range of different measures, aimed at revitalizing the economy, providing community and targeted relief measures and aligning Hong Kong’s tax system with international rules, as well as environmental measures to help support the goal of a carbon neutral Hong Kong.
Announcements by the Inland Revenue Department
Members may wish to be aware of the following matters:
- A letter to tax representatives, extending the due date for filing 2020/21 Profits Tax returns for loss cases with Accounting Date Code “M” from 31 January to 28 February.
- A notice from the Inland Revenue Department (IRD) to request employers to inform the change of their postal address, if any, in view that “Employer’s Return of Remuneration and Pensions” will be issued on 1 April.
- Latest arrangements for IRD’s public services.
- Stamp Duty statistics as of January 2022 are now available.
Legislation and other initiatives
Announcements by the government
Members may wish to be aware of the following matters:
- Financial support for catering, commercial bathhouse and places of public entertainment sectors under fifth round of Anti-epidemic Fund.
- Expansion of special work arrangements for government employees and suspension of non-essential public services.
- Latest arrangements for public services of Land Registry.
- Latest arrangement for postal services.
- Airmail services to Australia, Canada, Mexico, United States and certain other destinations suspended.
- Financial results for the nine months ended 31 December 2021.
- Statement by Secretary for Home Affairs Caspar Tsui.
- The Secretary for the Civil Service appeals to public to receive COVID-19 vaccination early.
The list of terrorists and terrorist associates designated by the United Nations Security Council, published pursuant to the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575), was gazetted on 5 January.
The list of individuals, groups, undertakings and entities published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) was updated on 5 January.
The list of terrorists and terrorist associates designated by the UNSC, published pursuant to the United Nations (Anti-Terrorism Measures) Ordinance (Cap. 575) was gazetted on 25 January.
The list of individuals, groups, undertakings and entities published under section 25 of the United Nations Sanctions (ISIL and Al-Qaida) Regulation (Cap. 537CB) was updated on 25 January.
The list of individuals and entities published under section 43 of the United Nations Sanctions (Libya) Regulation 2019 (Cap. 537CF) was updated on 29 January.
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.
Please refer to the full versions of Technical News on the Institute’s website: www.hkicpa.org.hk