Historical news and updates on:
  

• Financial Reporting

• Audit and Assurance

• Consulting

• Taxation

Intermediate Financial Reporting: An IFRS Perspective, 2009, 1st Edition  (Available in HK by end of Oct. 2008)
Mr. Nelson Lam and Dr. Peter Lau, McGraw-Hill Education Asia.

(Covering common financial reporting on individual company level (i.e. intermediate level) and to be distributed over Asia Pacific, including Hong Kong, and around the world)   
 
  - Introduction and book available in McGraw-Hill Education Asia.

  - Introduction in Amazon.com.

IASB publishes educational guidance on the application of fair value measurement when markets become inactive (31 October 2008)

Hong Kong Adopts International Accounting Amendments for Reclassification of Financial Instruments - "Breathing room" for banks in financial crisise (15 October 2008)

IASB amendments permit reclassification of financial instruments (13 October 2008)

The Financial Accounting Standards Board has published a clarification on the application of "fair value" accounting where there is no market for a security, but it declined to suspend the fair-value rule entirely, as some had urged. Under the change, when an active market for a security doesn't exist, companies will be allowed to use their managers' estimates of value, taking into account expected future cash flow and risk discount rates. A spokesman for the FASB said the guidance gives companies "a wider range of options and input to get to fair value. Read the FASB staff position paper. (10 October 2008)

Closing the gap: The American securities regulators vote to ditch their own accounting standards - An article in Economist explains the latest development in the US Securities and Exchange Commission's plan envisages American-based multinationals switching to the standards voluntarily in 2010. (28 August 2008)

SEC Proposes Roadmap Toward Global Accounting Standards to Help Investors Compare Financial Information More Easily - The Securities and Exchange Commission (SEC) of the United States voted on 27 August 2008 to publish for public comment a proposed Roadmap that could lead to the use of International Financial Reporting Standards (IFRS) by U.S. issuers beginning in 2014. Currently, U.S. issuers use U.S. Generally Accepted Accounting Principles (U.S. GAAP). The Commission would make a decision in 2011 on whether adoption of IFRS is in the public interest and would benefit investors. (27 August 2008)

IASB response to the credit crisis  (3 July 2008)

AICPA Calls for Three to Five Year Timeline for Reasonable Transition to IFRS  (17 June 2008)

The AICPA publicly announced a new website, www.IFRS.com, which was officially launched on May 15. to help its members and financial professionals learn about and stay informed on International Financial Reporting Standards.  (20 May 2008)

Do you want what is XBRL? 
That will affect or indeed is affecting our financial reporting. SEC of US has just recommended to require all U.S. companies to provide financial information using interactive data beginning next year for the largest companies, and within three years for all public companies. Know more about XBRL at www.XBRL.org. (17 May 2008)

"Consultancy on The Impact of the HKFRS Convergence Project: A Review of the Hang Seng Index Constituent Stocks – Final Report" - A research paper commissioned by HKICPA to assess the effect of adopting HKFRSs on Hang Seng Index Constituent Stocks (May 2008)

IASB publishes a discussion paper as first step towards reducing complexity in reporting financial instruments, Press release. (19 Mar. 2008)

IFRS and Sustainable Internation Control (English Conference in Seoul, Korea): In Korea, all listed companies will be required to prepare their annual financial statements under Korean equivalents of IFRSs (K-IFRSs) beginning in 2011. Nelson has been invited to speak and share the experience of IFRSs in Hong Kong in a conference in Seoul of Korea on 4 April 2008.

If you have a huge loss for the year, how will you do to reduce its impact on the year's result? Learn from Societe Generale and see "how creative they are in interpreting accounting rules ......". (International Herald Tribune, 6 Mar. 2008)

Is fair value accounting really fair? Some investors are starting to question an accounting method used to put a market value on hard-to-price assets as the credit crunch has caused their markets to evaporate. (Reuters, 26 Feb. 2008)

Subprime and Credit Crunch - A technical Q&A on financial reporting and auditing issues issued by HKICPA on 21 Feb. 2008.

In Jan. 2008, IASB has completed the second phase of its business combinations project by issuing a revised version of IFRS 3 Business Combination and an amended version of IAS 27 Consolidated and Separate Financial Statements.  The new requirements take effect on 1 July 2009. (Press Release and Project Page)

On last day of 2007, HKICPA issued the revised HKAS 1 Presentation of Financial Statements (Members' Handbook Update No. 046).

The U.S. Securities and Exchange Commission approved rule amendments under which financial statements from foreign private issuers in the U.S. will be accepted without reconciliation to U.S. Generally Accepted Accounting Principles only if they are prepared using International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. (Press Release as of 15 November 2007)

Development and Update of International and Hong Kong Accounting and Auditing Standards Impacting SMEs and SMPs (Joint Cantonese seminar of SCAA and ACCA - one of the speakers) (27 November 2007)

EU rejects IFRS for SMEs.

One more change - IAS 1 has been revised!
Formal title of a balance sheet becomes "Statement of Financial Position" while a profit and loss account or an income statement becomes "Statement of Comprehensive Income".  Fortunately, they are not mandatory so far .......  Press release can be found in IASB's website.

Sample accounting and auditing documents developed for SME and SMP in Hong Kong

Leaders of US and EU agreed in April 2007 to establish the Transatlantic Economic Council and to ensure conditions for the US-GAAP and IFRSs to be recognized in both jurisdictions without the need for reconciliation by 2009 or possibly sooner. (White House release)

IASB's Annual Improvement Project (finalised in April each year from 2008 - Project Summary)

Exposure Draft of the IFRS for SMEs (freely available now) published by IASB

Do you want to lodge your comment? (comment deadline - 1 October 2007)

Accounting Cases in Hong Kong: The First HKSA Accounting Case Competition (2004)
The collection of the award-winning cases of the first Hong Kong Society of Accountants Case Competition in 2001. It contains Nelson's case which got the Championship (Gold Award) in this competition and is now available in Amazon.com.

New IAASB Audit Practice Alert Focuses on Fair Value Accounting Estimates (6 October 2008)

In Jan. 2008, IFAC's SMP Committee released a new implementation guide (Guide to Using ISAs in the Audit of Small- and Medium-sized Entities) to assist SMPs and other practitioners in applying International Standards on Auditing (ISAs). It may be helpful to you!

In Sep. 2007, the Auditing Practices Board in UK has issued a practice note on smaller entity audit documentation, "Guidance on Smaller Entity Audit Documentation", which serves a reference for HK practitioners.

IAASB has revised its proposed effective date (15 December 2009) for its its full set of revised and redrafted International Standards on Auditing. Press release can be found in IAASB's website. (Project Update)

IAASB targets to have an effective date of 15 December 2008 for its full set of revised and redrafted International Standards on Auditing. Update can be found in IAASB's website.

Sample accounting and auditing documents developed for SME and SMP in Hong Kong

The PAIB Committee released new guidance on the use of discounted cash flow analysis and net present value in evaluating investments. Entitled Project Appraisal Using Discounted Cash Flow, this guidance is part of the committee's new program to develop International Good Practice Guidance on financial and management accounting topics. (25 July 2008)

HKBU students win CFA Global Investment Research Challenge Championship - Defeating teams from six local universities and three Mainland universities in Nov. 2007, the HKBU team won the championship in Greater China and then scooped the Asia Pacific championship, which was held last month, to represent the Asia Pacific region to win the global championship (6 May 2008)

New Challenges for Foreign Producers: ‘China’s Manufacturing Competitiveness Is at Risk’. (26 Mar. 2008)

A Board of Review case (D43/06) may affect your 50:50 offshore claim (subject to appeal). HKICPA's A-Plus has an article on this case - "Tax Exemptions for Manufacturing Firms" in October 2007.

SCAA's Seminar on HK Tax Updates for SMEs and SMPs spoken by Mr. Fergus Wong on 30 Oct. 2007 (Enrolment Form)

A recent Court of Appeal ruling may change our tax practice. HKICPA's A-Plus has an article on this case - "Tax Panelties" in August 2007. (Full case)