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MEMBERS' HANDBOOK
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Handbook Update No. 335 relates to the revised Statement 1.500 Continuing Professional Development, prescribing the following additional CPD requirements:
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- All members to undertake a minimum of 2 verifiable hours annually on ethics-related CPD activities.
- Practising Certificate holders and Responsible Persons of registered Public Interest Entity auditors to undertake a minimum of 5 verifiable hours annually on accounting or auditing-related CPD activities.
- All members to undertake a minimum of 50% of the required 60 verifiable CPD hours on structured learning activities in each rolling 3-year period.
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These changes will take effect in the CPD cycle starting on 1 December 2026, except for the ethics CPD requirement for Responsible Persons of registered PIE auditors and Practising Certificate holders, which will take effect on 1 December 2025.
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HKICPA releases HKFRS S1 and S2 Guidance – Part 2
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The Institute has released HKFRS S1 and S2 Guidance – Part 2 (the Guidance), building on Part 1 released in August 2025, which addresses key foundational topics.
Part 2 continues this effort by offering clear, actionable steps to overcome implementation challenges on hot issues, complemented by practical examples and insights informed by prevailing market practices. It features:
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- A step-by-step approach to addressing implementation challenges;
- Practical examples and insights from market practices; and
- Coverage of key areas, including climate-related scenario analysis, anticipated financial effects, greenhouse gas emissions, transition plans and connected information.
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This latest release reinforces the Institute’s commitment to supporting both sustainability and non-sustainability professionals in applying HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures (HKFRS SDS).
Join the Institute’s free webinar on 27 November to gain insights and practical tips for applying Part 1 and Part 2 of HKFRS S1 and S2 Guidance.
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Live webinar on Year-end Financial Reporting Reminders for 2025
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To get well prepared for the year-end closing of 2025, enrol in this live webinar on 12 January 2026, which will cover:
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- HKFRS Accounting Standards/Amendments that are effective in 2025 and beyond;
- IFRS Interpretations Committee agenda decisions that are relevant to Hong Kong;
- Common application issues identified by regulators; and
- Other issues relevant for closing out 2025.
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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.
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- 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
- 10 December: Accounting and auditing considerations for digital assets
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New educational material to support implementation of the IFRS for SMEs Accounting Standard
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To support SMEs in applying the third edition of the IFRS for SMEs Accounting Standard, the IFRS Foundation has published an educational module for Section 9—Consolidated and Separate Financial Statements.
This updated module is 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 International Accounting Standards Board (IASB).
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The Institute’s Financial Reporting Standards Committee meeting minutes
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Minutes of the October 2025 meeting is now available.
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HKICPA Audit Practice Manual (2024 edition) – Application workshop
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The Institute’s Audit Practice Manual (APM) serves as a reference tool featuring customizable documentation templates and example audit files. It allows users to tailor their audit approaches and procedures to the specific circumstances of an audit client, and assists them to comply with relevant Hong Kong Standards on Auditing (HKSAs).
The current 2024 edition features updated guidance notes, audit programmes, and checklists that align with HKSA 600 (Revised), Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors).
Join the Institute’s workshop on 18 December, where the speaker will guide participants step-by-step through the use of the APM 2024, from audit planning to completion. The speaker will also demonstrate the manual’s methodology for performing an audit of financial statements, highlight the application of selected audit programmes, and explain how these materials address specific HKSA requirements. The session aims to refresh participants’ auditing knowledge and promote effective use of the APM.
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Reminder: 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:
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- 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.
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This webinar encourages interactive learning, featuring a Q&A session to allow participants to ask questions and explore the topics in more detail.
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AFRC publishes global audit regulation study, reinforcing dedication to world‑class standards
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The Accounting and Financial Reporting Council (AFRC) has released a study titled “Global Developments in Audit Regulation: Key Insights for Hong Kong”. The study aims to ensure that Hong Kong’s audit regulation actively upholds the integrity of its evolving capital market. As the market expands with cross-border listings, new financial products, and digital assets, the regulatory framework must provide robust oversight to maintain investor confidence.
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AFRC concludes successful Regional Regulatory Forum 2025
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On 10 November, the AFRC hosted the Regional Regulatory Forum (RRF) 2025 in Hong Kong. Distinguished guests included Paul Chan, Financial Secretary of the Hong Kong SAR, Guo Tingting, Vice Minister of Finance of the People's Republic of China and Wang Songmiao, Secretary General of the Liaison Office of the Central People’s Government in the Hong Kong SAR. The Forum brought together a total of more than 400 esteemed attendees.
This year’s Forum, themed “Accounting for the Future", examined evolving developments in financial reporting and auditing and their implications for the wider financial ecosystem. Panel discussions addressed corporate governance and culture, audit quality, artificial intelligence, and sustainability assurance, highlighting the need of the profession to be purposeful, progressive, and resilient amid changing regulatory, environmental, and technological landscapes, to secure the long-term integrity and competitiveness of capital markets.
Following the main Forum, a closed-door regulatory roundtable and specialized workshops were held the next day.
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Updated: Technology-related Catalog of Issues and Potential Actions
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The International Auditing and Assurance Standards Board (IAASB) has released an updated version of its technology-related Catalog of Issues and Potential Actions, building on the initial edition published in May 2025. This update introduces a new theme "Transparency through Communication and Auditor Reporting" and highlights significant events and developments related to ongoing projects and initiatives.
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IESBA Engagement - Strengthening partnerships and advancing ethics in Hong Kong
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The International Ethics Standards Board for Accountants (IESBA) Vice Chair and the Program and Senior Director recently had a productive visit to Hong Kong, where they engaged with key stakeholders to advance collaboration on ethics, sustainability, and governance. Highlights from their visit are now available.
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The Institute’s Ethics Committee meeting minutes
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Minutes of the 270th 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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The investor effect: What’s really driving sustainability reporting?
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Read the latest A Plus feature covering investor voices on what matters most to investors when looking at sustainability information, and what constitutes as “meaningful” disclosure.
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Leading the way: A value-creation ethics framework for sustainability reporting and assurance
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Read the latest A Plus article by Ken Siong, IESBA's Program and Senior Director, about why it's important for practitioners to follow clear ethical and independence requirements when preparing or assuring sustainability information.
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A new chapter – Ethics in sustainability assurance
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In October, the Institute issued the Ethics Standards for Sustainability Assurance and Other Revisions to the Code Relating to Sustainability Assurance and Reporting (Sustainability Ethics Standards) to address critical risks affecting the integrity, quality, and effectiveness of sustainability reporting and assurance. These risks include bias, conflicts of interest, pressure to act unethically, fraud such as greenwashing, non-compliance with laws and regulations (NOCLAR), and threats to practitioner independence.
The Sustainability Ethics Standards establish fundamental ethical principles that must be adhered to during sustainability reporting and assurance engagements. Read the latest A Plus article highlighting the key features of the new Sustainability Ethics Standards.
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New FAQ for ISSA 5000
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The IAASB has released a new Frequently Asked Questions (FAQ) publication to our catalogue of adoption and implementation resources for ISSA 5000, General Requirements for Sustainability Assurance Engagements.
The FAQ explores the relevance of ISSA 5000 to sustainability assurance engagements in the European Union, providing a comprehensive overview of how the standard supports consistent, high-quality assurance, thereby enhancing confidence in sustainability information prepared in accordance with the European Sustainability Reporting Standards (ESRS).
It also outlines how ISSA 5000 could be applied in assurance engagements required under the Corporate Sustainability Reporting Directive (CSRD) and highlights key EU-specific considerations, including double materiality, scalability, and interoperability with other frameworks.
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ISSB welcomes TNFD's support as it advances nature-related disclosures
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The International Sustainability Standards Board (ISSB) made a statement welcoming the announcement by the Taskforce on Nature-related Financial Disclosures (TNFD) stating it will complete its current technical work by the third quarter of 2026 and pause the commencement of any further technical guidance efforts.
The TNFD’s announcement follows the ISSB’s decision to advance its own work to meet investors’ information needs through disclosures about nature-related risks and opportunities, drawing on the TNFD framework. In response to identified investor needs, the ISSB will undertake standard-setting to introduce incremental disclosure requirements on nature-related risks and opportunities that are not currently covered by existing IFRS S1 and S2 standards. The ISSB will agree on its approach to standard-setting in the coming months, considering options such as a mix of application guidance or amendments to existing ISSB Standards, industry-based guidance, additional resources, or a new standard. This work will be subject to public consultation in line with the IFRS Foundations’ due process.
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IFRS Sustainability Symposium 2025—key takeaways
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The IFRS Sustainability Symposium 2025 took place in October in London, bringing together preparers, investors, and other global market leaders from 48 jurisdictions to discuss the implementation of ISSB Standards.
Under the theme “Pathways to Adoption”, the Symposium focused on practical experiences with both regulatory and voluntary application of the ISSB Standards.
Registered participants can access the Symposium replay here to learn more about the key takeaways:
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- ISSB Standards are becoming the global passport for companies to meet sustainability disclosure regulations.
- The EU Omnibus provides an opportunity to further align ESRS with ISSB Standards.
- International standards enable a level playing field for companies.
- Quality is more important than quantity.
- Strong market demand exists for industry-specific disclosures.
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ISSB November 2025 podcast & update
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In this podcast, the ISSB Chair and Vice-Chair share insights into key ISSB updates, including how the ISSB will draw on the TNFD framework to address investors' common information needs as it proceeds with standard-setting for disclosures related to nature-related risks and opportunities. In addition, a summary of the November 2025 meeting is now available.
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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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Exchange issues disciplinary action
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On 11 November, the Stock Exchange of Hong Kong Limited (the Exchange) issued a disciplinary action against KWG Group Holdings Limited (Stock Code:1813), six current directors, and a former company secretary. The case reflects serious lapses in compliance and governance, including significant delays in issuing required circulars and failures in communication with the Exchange. The action underscores the Exchange’s firm stance that directors and senior management must proactively uphold their duties, maintain effective internal controls, and ensure timely responses to regulatory enquiries. From the regulator’s perspective, a strong compliance culture and robust corporate governance are not only essential for fulfilling Listing Rule obligations, but also for safeguarding public interest and market integrity.
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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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Announcements by the government
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Members may wish to be aware of the following matters:
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Anti-money laundering (AML) notices and news
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AML notices:
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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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