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MEMBERS' HANDBOOK
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Handbook Update No. 333 relates to the issuance of Amendments to HKFRS 19 Subsidiaries without Public Accountability: Disclosures. The amendments help eligible subsidiaries by reducing disclosure requirements for the following new HKFRS Accounting Standards and amendments:
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- HKFRS 18 Presentation and Disclosure in Financial Statements;
- Supplier Finance Arrangements (Amendments to HKAS 7 Statement of Cash Flows and HKFRS 7 Financial Instruments: Disclosures);
- International Tax Reform—Pillar Two Model Rules (Amendments to HKAS 12 Income Taxes);
- Lack of Exchangeability (Amendments to HKAS 21 The Effects of Changes in Foreign Exchange Rates); and
- Amendments to the Classification and Measurement of Financial Instruments (Amendments to HKFRS 9 Financial Instruments and HKFRS 7).
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With these amendments, HKFRS 19 reflects the changes to HKFRS Accounting Standards that take effect up to 1 January 2027, when HKFRS 19 will be applicable.
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Handbook Update No. 334 relates to the (i) issuance of HKSA 240 (Revised), The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements Including Conforming and Consequential Amendments to Other Hong Kong Standards and (ii) the accompanying Key Impacts document.
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Institute live webinar: Accounting and auditing considerations for digital assets
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Digital assets are evolving rapidly, and are increasingly acquired not only by individuals for investment or speculative purposes, but also by corporate entities for various business purposes such as settlement or investment. As a result, these assets appear more frequently in financial statements.
During the webinar on 10 December, the speakers will share key accounting and auditing considerations for digital assets, focusing on the following areas:
- Common accounting issues — classification, measurement, presentation and disclosure.
- Auditing considerations — key audit risks, evidence and confirmation challenges, and valuation.
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Reminder: Institute Virtual Conference: Annual Accounting and Sustainability Update 2025: Shedding light on evolving complexities
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The growing complexities and uncertainties in today's business world are impacting various sectors. Recently, global tariff measures, evolving climate risks, and the development of various digital assets along with their regulatory regimes have become popular discussion topics. These developments are likely to complicate financial reporting for many entities. Join us at the Annual Accounting and Sustainability Update Conference on 22 November to learn how to navigate these uncertainties.
Topics covered include:
- HKFRSs amendments that are effective for 2025 and beyond;
- Application issues of HKFRSs and common pitfalls identified through the recent regulators’ inspections;
- Emerging topics for financial reporting - global tariffs, virtual assets, and climate related and other uncertainties; and
- Update on recent developments in sustainability reporting, including the exposure drafts on amendments to the IFRS Sustainability Disclosure Standards.
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Reminder: Upcoming live webinars on financial reporting
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Join the upcoming live webinars to stay updated on the latest developments in financial reporting standards and to help you prepare for the year-end closing of 2025.
- 17 November: Tackling Common Financial Reporting Issues for Financial Instruments
- 26 November: Navigating the accounting for the abolition of the MPF-LSP offsetting mechanism and related subsidy scheme
- 4 December: HKFRS 18 In Focus: What insurers and other financial institutions need to know
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The Institute’s Financial Reporting Standards Committee meeting minutes
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Minutes of the September 2025 meeting is now available.
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IASB October 2025 podcast & update
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The International Accounting Standards Board (IASB) podcast, highlighting preliminary decisions of the IASB at its October 2025 meeting, and a summary of the meeting, are now available.
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Q3 2025 IFRS Interpretations Committee podcast
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In this podcast, the IFRS Interpretations Committee’s Chair Bruce Mackenzie and member Mark Mahar highlight the two tentative agenda decisions discussed during the Committee's September meeting:
- Classification of a Foreign Exchange Difference from an Intragroup Monetary Liability (or Asset) (IFRS 18); and
- Economic Benefits from Use of a Battery under an Offtake Arrangement (IFRS 16).
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AFRC video: Audit Uncovered
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The AFRC video Audit Uncovered Ep. 1 explores how audit reports can help users of financial statement assess credibility of those statements, identify significant risks, and build investor confidence.
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Live webinar: Auditing Accounting Estimates and Related Disclosures
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During the webinar on 12 December, the speaker will share insights on the following aspects of HKSA 540 (Revised), Auditing Accounting Estimates and Related Disclosures:
- A refresher on the key requirements of HKSA 540 (Revised);
- In-depth exploration of key aspects of the standard, with practical illustrations focusing on impairment of non-current assets and expected credit loss calculations based on examples developed by the International Auditing and Assurance Standards Board (IAASB); and
- Insights from recent inspections by the Accounting and Financial Reporting Council (AFRC), highlighting best practices for planning and performing audit procedures related to accounting estimates and common pitfalls to avoid, ensuring compliance with HKSA 540 (Revised) and robust audit quality.
This webinar encourages interactive learning, with a Q&A session included to allow
participants to ask questions and explore the topics in more detail.
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Industry specific webinars in November
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Register now to receive updates and insights on the following topics:
- Industry Update Relating to Licensed Corporations (12 November): Speakers from the Securities and Futures Commission will discuss the regulatory framework for centralized virtual asset trading platforms and the proposed regulatory frameworks for virtual asset dealers and custodians. They will also provide an overview of the consultation on draft amendments to the Securities and Futures (Financial Resources) Rules (FRR) and related guidelines for implementing a set of internationally comparable capital requirements for licensed corporations (LCs) engaged in over-the-counter derivative activities (OTCD capital requirements).
- Industry Update Relating to Investment Funds (24 November): This session will feature insights from speakers at the Securities and Futures Commission and the Mandatory Provident Fund Schemes Authority. They will provide an overview of the Proposed amendments to the Code on Unit Trusts and Mutual Funds, the progress of the eMPF Platform, and a discussion of audits of MPF schemes and investment funds.
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On the Margins: Insights from the IESBA Ethics & Independence Conference 2025
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Filmed during the International Ethics Standards Board for Accountants (IESBA)'s recent Ethics & Independence Conference in Lisbon, “On the Margins” features speakers sharing personal reflections on the conversations shaping the future of ethics, independence, and the public trust in the accountancy profession.
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IESBA meeting summary
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The highlights and decisions from the IESBA meeting held in September 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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HKICPA Technical Bulletin: Environmental, Social and Governance (ESG) Assurance Reporting
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The Institute has updated Technical Bulletin AATB 5 to reflect amendments to the HKEX ESG Reporting Code, which came into effect in January 2025. This revised AATB 5 will be applicable for assurance engagements on ESG information prepared under the requirements of the HKEX ESG Reporting Code. It will become effective for periods ending on or after 31 December 2025.
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A Sustainable World: The role of Ethics and Accountants
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Gabriela Figueiredo Dias, Chair of the IESBA, delivered a keynote speech at the 20th International Congress on Accounting and Auditing (CICA) themed “Accounting in a Sustainable World.” The presentation slides are now available.
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ISSB October 2025 update
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The update that highlights International Sustainability Standards Board (ISSB)’s preliminary decisions at its October 2025 meeting is now available.
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Initiative to facilitate the role of ISSB Standards as a global passport announced at IFRS Sustainability Symposium
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At the IFRS Sustainability Symposium on 30 October, ISSB Chair Emmanuel Faber announced the expansion of the Jurisdictional Working Group. This initiative aims to support multilateral discussions among regulators on using ISSB Standards as a global passport—enhancing capital markets and addressing cross-border sustainability disclosure challenges.
As more jurisdictions introduce sustainability-related disclosure requirements, the risk of fragmentation grows. Passporting provisions—where jurisdictions accept ISSB-compliant reports with local adaptations—can reduce costs for preparers and improve efficiency and comparability across markets.
The renamed and expanded Jurisdictional Adopters Working Group reflects the growing interest from around 40 jurisdictions and provides a platform for discussing global passporting arrangements.
A new Jurisdictional Rationale Guide for the adoption or other use of ISSB Standards and accompanying tool, unveiled at the Symposium, outline the objectives behind jurisdictions adopting ISSB Standards. The guide reflects on jurisdictions’ experiences and their reasons for introducing ISSB Standards.
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A Plus article: The investor effect: What’s really driving sustainability reporting?
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Read the article from the latest issue of A Plus to hear from investors, including the Principles for Responsible Investment, about what matters most to them when looking at sustainability information, and what constitutes as “meaningful” disclosure.
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HKFRS S1 and S2 Implementation Platform
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You are welcome to submit technical questions related to the implementation of HKFRS S1 and S2. Questions that meet the submission criteria will be considered for discussion at the upcoming meeting.
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Best Corporate Governance and ESG Awards 2025
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The Institute successfully concluded its Best Corporate Governance and ESG Awards 2025 (Awards), marking the 25th anniversary of the competition. The presentation luncheon ceremony took place at the JW Marriott Hotel on 31 October, in a celebratory and enjoyable atmosphere. Visit the dedicated webpage for details. You can also access the Judges’ Report, which contains the full list of award winners, observations on current standards of corporate governance and environmental, social and governance (ESG) practices in Hong Kong, explanations of new features in the 2025 Awards, and other relevant information, including 25th anniversary messages to the Institute from some of Hong Kong’s most prominent listed companies and public sector organizations.
Additionally, you can view more photographs from the presentation ceremony in our gallery.
Alongside the Awards, the Institute conducted a brief study on carbon emissions reporting by the 105 constituent companies of the Hang Seng Composite LargeCap Index, to understand about their preparedness for the new climate-related reporting requirements in the ESG Code under the listing rules. Please refer to the report for our findings.
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Implementation of the iCMS for personal injuries cases of the HC
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Following the implementation of integrated Court Case Management System (iCMS) to cover civil appeal cases in the High Court and commercial cases, construction and arbitration cases and intellectual property cases in the Court of First Instance of the HC (CFI), the Judiciary Administration has issued a further letter to the Institute, advising that iCMS has been extended to cover personal injuries cases in the CFI with effect from 30 October 2025.
Insolvency practitioners, members, and court users can refer to the relevant Implementation Notice and the Judiciary’s dedicated webpage for user guides, demonstration videos clips, and answers to frequently asked questions etc.
If you have any questions about the phased implementation of the iCMS, please contact José Yam at 2825 8412, Vivian Ngan at 2825 4438 or Dicky So at 2867 2661, all from the Judiciary Administration.
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Announcements by the Inland Revenue Department
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Members may wish to be aware of the following matter:
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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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FATF publication on high-risk and other monitored jurisdictions
On 24 October, 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 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, referring to other jurisdictions that have been identified to have strategic deficiencies in their AML/ counter-terrorist regimes and that are working with the FATF to address these deficiencies. The FATF generally calls for the application of a risk-based approach, rather than enhanced due diligence, towards these jurisdictions. The full list of such jurisdictions and their current status can be found in the FATF notice.
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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.
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Other AML news
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Publications from other organizations:
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Disclaimer: Some sections contain information from outside sources. We endeavour to link to reputable sources but the Institute is not responsible for the accuracy of the content and the content does not necessarily represent the views of the Institute.
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