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IFRS Foundation Conference 2025 - Key highlights
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The conference held in June, themed ‘Knowledge in Practice’, explored how standard-setting, stakeholder perspectives and real-world application work together to enhance high-quality and globally comparable financial and sustainability reporting.
In addition to the keynote speeches by Erkki Liikanen, Chair of the IFRS Foundation Trustees; Andreas Barckow, Chair of the International Accounting Standards Board (IASB) and Emmanuel Faber, Chair of the International Sustainability Standards Board (ISSB), the conference featured sessions focusing on the current projects and priorities of both boards. These sessions also addressed how IFRS Standards are being understood, applied and supported in different contexts.
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Invitation to comment
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The Institute is seeking comments on the following tentative agenda decisions published by the IFRS Interpretations Committee by 25 August:
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E-learning: Financial reporting considerations for evolving tariff
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The recent tariffs imposed by the US government, along with the resultant market volatility, have become critical factors for entities preparing their financial statements, particularly those with June year-ends or interim reporting periods. This e-learning session is designed to provide timely and practical guidance on the financial reporting implications of these evolving tariffs.
In this e-learning, the speaker will focus on how to assess and reflect the impact of tariff changes on various aspects of financial reporting, including:
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- going concern considerations;
- impairment of non-financial assets;
- recoverability of deferred tax assets;
- assessment of onerous contract;
- inventory valuation; and
- disclosure requirements.
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Join us to gain essential insights that will help you navigate these complex challenges in financial reporting.
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E-learnings: archived webinars on financial reporting
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The Institute hosted a series of live webinars in the last quarter, covering a range of hot topics in financial reporting. These sessions have been archived for member access. Enrol now if you missed any of these webinars.
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Reminder - Institute roundtable discussion: IASB RFI on PIR of IFRS 16 Leases
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The Institute will host a roundtable on 13 August to obtain views from stakeholders on the IASB Request for Information (RFI) regarding the Post-implementation Review (PIR) of IFRS 16 Leases.
IFRS 16, which took effect in January 2019, was introduced to improve the information that companies provide about their lease arrangements to investors and other users of financial statements. The implementation of IFRS 16 (equivalent to HKFRS 16) has significant implications for many lessees in Hong Kong affecting various industries and influencing how investors assess entities’ financial performance, financial position and cash flows.
This PIR will evaluate whether IFRS 16 is working broadly as intended for investors, companies, auditors and regulators. Members and other interested parties are highly encouraged to join the roundtable to share your experiences and perspectives on applying the Standard. Your feedback may lead to further actions by the IASB. Register by 8 August to reserve your place.
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New educational materials to support implementation of the IFRS for SMEs Accounting Standard
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The IFRS Foundation has published the following updated educational modules to support SMEs in applying the third edition of the IFRS for SMEs Accounting Standard:
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- Section 1 Small and Medium-sized Entities;
- Section 2 Concepts and Pervasive Principles; and
- Section 7 Statement of Cash Flows.
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These updated modules are also relevant for entities applying the revised HKFRS for Private Entities Accounting Standard, issued by the Institute in April, which is equivalent to the third edition of the IFRS for SMEs Accounting Standard published by the IASB.
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IFRS Interpretations Committee June 2025 Update
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The IFRS Interpretations Committee Update provides a summary of discussions at its June 2025 meeting.
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HKICPA technical training on auditing and assurance
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Join the Institute’s upcoming technical training workshop designed to enhance your auditing knowledge.
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E-learning: Navigating Assurance and AUP Standards
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Register for the e-learning that:
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- Explains HKSAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information (“HKSAE 3000R”) and HKSRS 4400 (Revised), Agreed-Upon Procedures Engagements (“HKSRS 4400R”);
- Delves into the key requirements and practical applications; and
- Offers insights on how to address the common pitfalls encountered in practice.
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AFRC issues 2024-25 Annual Report
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The Accounting and Financial Reporting Council (AFRC) has published its 2024-25 Annual Report for the fiscal year ended 31 March 2025. Following its strategic priorities set out in March, the report outlines the AFRC’s initiatives on regulation, governance, development and organizational effectiveness.
During the reporting period, the AFRC issued 15 publications and conducted 54 stakeholder engagement activities, reaching over 25,500 stakeholders and raising awareness on critical issues related to audit quality, corporate governance, and regulatory compliance.
The report underscores the AFRC's commitment to advancing the accounting and audit profession through various initiatives such as the first Regional Regulatory Forum, strengthened industry collaboration, a knowledge and guidance video series designed for small to medium practices, and timely guidance on emerging issues via various channels.
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New FAQ for the ISA for LCE
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The IAASB has published a new Frequently Asked Questions document for the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), which is tailored for financial audits of smaller and less complex entities. This new FAQ replaces the previous version and addresses common questions received during webinars and outreach following the standard’s publication in December 2023, providing timely and practical clarifications.
This release is the final component of the International Auditing and Assurance Standards Board’s (IAASB) planned implementation support package to facilitate the effective implementation of the standard. It complements the previously released adoption guide, fact sheet, first-time implementation guide, and other supplemental materials.
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International Standard on Auditing 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements
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The IAASB has revised ISA 240 (Revised), which responds to global scrutiny and stakeholder concern regarding the auditor’s role in detecting fraud. The revised standard incorporates the following elements:
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- Clearer auditor responsibilities: Strengthens and clarifies what auditors are expected to do when addressing risks relating to fraud.
- Reinforced professional skepticism: Introduces new requirements to elevate the consistency and effective practice of professional skepticism across all stages of the audit.
- Sharper fraud risk assessment: Requires a focused “fraud lens” for identifying and addressing risks, with stronger connections to related standards.
- More effective fraud responses: Establishes a new section with clearer, enhanced requirements to guide auditors in responding to identified or suspected fraud.
- Improved transparency and communication: Emphasizes the importance of timely communication with management and those charged with governance, along with clearer disclosures in the auditor’s report.
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The revisions also align with ISA 570 (Revised 2024), Going Concern, recognizing that fraud and financial distress are often interrelated risks that must be addressed together to bolster corporate transparency and resilience. ISA 240 (Revised) will be effective for audits of financial statements for periods beginning on or after 15 December 2026. The Institute will follow its due process for the convergence and adoption of the standard.
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The Institute’s Ethics Committee meeting minutes
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Minutes of the 269th meeting are now available.
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HKICPA ethics resource centre
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Access resources and publications at the Institute’s Resource Centre to the Code where you can stay informed about the latest ethics pronouncements. Watch this video to learn how to easily access these valuable resources.
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Invitation to comment
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The Institute is seeking comments on the following ISSB Exposure Drafts by 14 October:
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HKICPA trainings on sustainability-related topics
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The Institute is committed to enhancing the capabilities of relevant stakeholders by equipping them with the professional knowledge necessary to navigate the dynamic landscape of sustainability. Our technical training sessions are specifically designed to equip our members to apply the Institute’s professional standards to sustainability-related topics:
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- 20 August: Groups Sustainability Assurance Engagements
- 3 September: Risk Identification and Assessment
- 17 September: Responding to Risks of Material Misstatement
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- Fundamental principles and concepts
- Engagement acceptance and continuance
- Group sustainability assurance engagements and the use of the work of others
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Educational material about using ISSB Industry-based Guidance when applying ISSB Standards
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The IFRS Foundation has published educational material to help companies understand the role of the ISSB industry-based guidance—which collectively refers to the SASB Standards and the Industry-based Guidance on Implementing IFRS S2—when applying ISSB Standards.
The ISSB industry-based guidance is a useful resource for companies applying ISSB Standards, as it sets out disclosure topics and metrics that are typically relevant with specific industries.
The educational material covers the following:
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- requirements in ISSB Standards that companies ‘shall refer to and consider the applicability of’ the ISSB industry-based guidance;
- considerations related to applying the ISSB industry-based guidance; and
- disclosure requirements about how a company has used the ISSB industry-based guidance.
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Webinar: Accelerate your career with the FSA Credential
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The FSA® Credential is the most advanced qualification related to ISSB Standards for sustainability or accounting practitioners. In the webinar on 23 July, the speakers will cover the following topics:
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- Introduction to the FSA Credential: Learn more about this two-part credential—comprising Level I (principles and practices) and Level II (application and analysis)—and how it can strengthen your professional capabilities.
- Panel discussion with credential holders: Hear first-hand experiences from two distinguished FSA Credential holders. Learn how the credential has advanced their careers and enabled them to lead in their day-to-day jobs.
- Resources for getting started: Learn how to register, how to prepare and what study resources are available.
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Click here to register or watch the on-demand recording later.
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IFRS Sustainability Symposium 2025 - Pathways to adoption
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The IFRS Sustainability Symposium 2025 will take place on 30 October in London. Members of the ISSB, technical staff and guest experts will explore the implementation of the ISSB Standards, featuring breakout sessions offering tailored insights to guide you on your implementation journey. Topics for the symposium include:
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- the progress of the ISSB’s mission and what to expect next;
- the global momentum of sustainability disclosure and how corporate leaders can leverage it;
- the practical application of global standards and how leading companies are navigating the early phase;
- disclosure of information throughout the global value chain; and
- disclosure of nature-related financial information.
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In addition to in-person attendance, there will be an option to participate virtually for those interested. Book by 12 September to receive an early bird discount. Click here to register or to find out more.
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IESBA and IAASB establish expert groups to support global implementation of sustainability standards
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The International Ethics Standards Board for Accountants (IESBA) and the IAASB have formed two expert implementation groups that will play important roles in supporting the effective implementation and application of the Boards’ recently released global sustainability standards:
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- The IESBA’s IESSA Implementation Monitoring Advisory Group (IIMAG) will support the implementation of the International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and revisions to the IESBA code for sustainability reporting.
- The IAASB’s ISSA 5000 Technical Implementation Contact Group (TICG) will support implementation of the ISSA 5000.
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Each group comprises a diverse and globally representative set of professionals who are well-acquainted with the standards and actively involved in implementation-related activities. The IIMAG and TICG will provide regular feedback to the Boards to ensure that emerging issues related to the implementation of the standards are identified and addressed timely, and that implementation support resources remain relevant and practical.
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Announcements from the Hong Kong Exchange and Clearing Limited (HKEX)
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HKEX has adopted a new Stock Settlement Fee (SSF) structure for Exchange Trades. Under this structure, a fee rate of 0.42 bps (0.0042%) applies to all Exchange Trades, with no minimum or maximum fee thresholds. This new fee structure aims to achieve equitable costs of Exchange Trades across all trade sizes while still aligning with the historical average paid by the market. Additionally, HKEX has prescribed an SSF fee rate of 0.2 bps (0.002%) for eligible Exchange Traded Product market making trades.
On 30 June, HKEX announced the launch of interest rate swap contracts with a maximum tenor of 30 years to trade on Northbound Swap Connect. This Swap Connect enhancement will extend the connectivity between Mainland China and Hong Kong's interest rate derivatives markets, and further support the diversified risk-management needs of both Chinese and international institutions by aligning the swaps tenor with the duration of their long-term bond holdings. The extension will also enable international investors to adopt more sophisticated trading strategies in their cross-border investment.
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Secretary for Financial Services and the Treasury's response to Legislative Council
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On 2 July, in response to a Legislative Council question raised regarding the passing of the Stablecoins Bill, the Secretary for Financial Services and the Treasury described the initiatives taken by the Government for the development of stablecoins in Hong Kong. Key initiatives include:
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- a current public consultation conducted by Hong Kong Monetary Authority (HKMA) on the detailed guidelines for implementing the Stablecoins Ordinance, which will take effect on 1 August;
- the launch of a stablecoins issuer sandbox to help understand and develop business models based on fiat-referenced stablecoins, regulatory guidance and practical use cases;
- the issuance of Policy statement 2.0 on the development of digital assets in Hong Kong relating to digital asset use and the exploration of stablecoins as a payment tool;
- proactive communication undertaken by the Financial Services and the Treasury Bureau and HKMA with local and overseas stakeholders on the regulation and development of stablecoins in Hong Kong; and
- keeping the licensing regime for stablecoin issuers in Hong Kong flexible and open under the principle of "same activity, same risks, same regulation", allowing issuers from around the world to apply for licence and peg their stablecoins to different fiat currencies for issuance.
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Best Corporate Governance and ESG Awards 2025
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The Best Corporate Governance and ESG Awards (Awards) 2025 is now open for entries.
The Awards highlight the continuing importance of good corporate governance (CG) and environmental, social and governance (ESG) reporting and practices for listed companies and public sector/ not-for-profit organizations (PSOs), and their investors and stakeholders, and they encourage organizations to integrate CG and ESG considerations into their values, strategies and operations.
Listed companies and PSOs seeking recognition from their peers and the wider market for their commitment to high-quality, sustainable practices and reporting are encouraged to enter the Awards. Participation is free. Interested organizations are invited to join this prestigious and sought-after awards competition, by submitting an entry form by 24 July.
Click here for more information.
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Announcements by the Inland Revenue Department (IRD)
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Members may wish to be aware of the following matters:
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Annual Taxation Conference 2025
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We’re excited to announce the upcoming Annual Taxation Conference 2025, which will be held in a live webinar format. Join us to hear from some of Hong Kong’s leading taxation experts and gain valuable insights into the latest developments in Hong Kong and international tax.
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Announcements by the government
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Members may wish to be aware of the following matter:
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Anti-money laundering (AML) notices and news
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AML notices
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Reminder: FATF list of high-risk and other monitored jurisdictions
On 13 June, the Financial Action Task Force (FATF) published a statement regarding high-risk jurisdictions subject to a call for action, calling on its members and all jurisdictions continue to apply specific measures and actions on Iran, the Democratic People's Republic of Korea and Myanmar.
The FATF also issued a notice on jurisdictions under increased monitoring, identifying jurisdictions with strategic deficiencies in their AML/ counter-terrorist and proliferation financing regimes and that are working with the FATF to address these deficiencies. The British Virgin Islands and Bolivia are new entries on the list. Other jurisdictions under review include Angola, Bulgaria; Burkina Faso, Cameroon, Côte d’Ivoire, Croatia, Democratic Republic of the Congo, Haiti, Kenya, Mali, Monaco, Mozambique, Namibia, Nigeria, South Africa, South Sudan, Tanzania, Venezuela and Vietnam, have had their progress reviewed by the FATF since February 2025 and updated statements are provided for these jurisdictions. Algeria, Lao PDR, Lebanon, Nepal, Syria and Yemen chose to defer reporting.
The FATF does not call for the application of enhanced due diligence measures in relation to the above jurisdictions under increased monitoring. The FATF standards do not envisage de-risking, or cutting-off entire classes of customers, but call for the application of a risk-based approach. The FATF encourages its members and all countries to take into account the information provided in their risk analysis. As they consider actions based on their risk analysis, they should ensure that flows of funds for humanitarian assistance, legitimate non-profit organization activity and remittances are neither disrupted nor discouraged. Registered practices of certified public accountants and other members of the Institute subject to AML regulations should take note of the above considerations in their business and client relations.
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Other AML news
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Publications from other organizations:
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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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