Home' A Plus Magazine : Feb 2013 Contents 4 February 2013
Institute makes submission
on Hong Kong’s budget
In its 2013-14 budget proposals, the Institute
called on the government to offer more help
to families and to increase the city’s inter-
national competitiveness. According to the
Institute’s submission, one of the main con-
cerns of the city’s taxpayers is keeping up
with rising costs.
The proposal suggests a range of mea-
sures to help families and individuals, includ-
ing widening the marginal tax bands from
HK$40,000 to HK$50,000, increasing child
allowances from HK$63,000 to HK$70,000,
allowing deductions for voluntary Mandatory
Provident Fund contributions with an annual
cap of HK$60,000 and allowing deductions
for private healthcare insurance premiums
with an annual cap of HK$12,000.
The Institute also advocated offering a rent-
al payment deduction as an alternative to the
home loan interest deduction, adjusting the
price thresholds of different stamp duty rates
in line with property price inflation, providing
a waiver on property rates of up to HK$2,500
per quarter and introducing an electricity sub-
sidy of HK$1,800 for the coming year.
Au Ping-lam, CPA (Practising)
Complaint: Failed or neglected to observe,
maintain or otherwise apply Hong Kong Fi-
nancial Reporting Standard for Private Enti-
ties and Hong Kong Standard on Auditing 500
Audit Evidence during the audit of the finan-
cial statements of a private company in Hong
Kong for the year ended 31 March 2010. Au ad-
mitted the complaints.
Decision: Au was reprimanded. He was
ordered to pay the Institute a penalty of
HK$46,000 and costs of the disciplinary
proceedings amounting to HK$59,882.
Details of the disciplinary findings are available
at the Institute’s website: www.hkicpa.org.hk.
The Institute notes with regret the passing
of Lee Yim-wan, Penny, Ng Yin-ping and Wu
Along with the IFRS Foundation Trustees, who were in tow n to hold a meeting,
the Hong Kong Institute of CPAs last month co-hosted an evening devoted to the
future of financial reporting.
The first event was a press conference featuring Michel Prada, chairman
of the IFRS Foundation Trustees, Hans Hoogervorst, chairman of the Interna-
tional Accounting Standards Board, Ronald Arculli, an IFRS Foundation trustee
representing Hong Kong, and Clement Chan, vice-president of the Institute and
a managing director of BDO.
Prada described Hong Kong as an “extremely important ” venue for the trustee
meetings because of its full adoption and full support of IFRS. He said the two-
day visit included discussions about strategy, funding, the establishment of the
Accounting Standards Advisory Forum and the operations of the IFRS Asia-Oce-
ania office in Tokyo.
Hooger vorst said the Asia-Pacific region was vital to the future of financial
reporting. “It’s the happening place to be in terms of economic development and
the avid adoption of our standards.”
He said he remained optimistic that the United States – the last major holdout
on IFRS – would eventually adopt the single set of international standards. How-
ever, he added, convergence with IFRS must pave the way. “ We cannot have this
bilateral relationship with the FASB. We are a mature full-grown organization
with 100 members and they have to come first.”
The IASB chairman said he expected IFRS to enter a “period of calm” follow-
ing the issuance of a standard on revenue recognition, which would occur very
soon. A leasing standard is in the process of exposure.
The press conference was followed by an evening of discussion on “ The fu-
ture of global financial reporting.”
Hong Kong’s financial secretary, John Tsang, welcomed delegates by noting
that IFRS has long been associated with global financial stability. “However, the
financial tsunami and related events of recent years have highlighted the diffi-
culties of aligning different financial systems in our era of globalization,” he said.
With the rapid diversification of business and integration of companies
across different borders, a robust financial reporting regime has become a pre-
requisite for the healthy development of the global economy, Tsang noted.
“ To strengthen the regulatory framework for auditors, we are working with
the Institute and the Financial Reporting Council on ways to further enhance
the independence of Hong Kong’s auditor oversight regime,” Tsang said.
Arthur Yuen, deputy chief executive of the Hong Kong Monetary Authority,
gave the keynote address, “The importance of IFRSs in promoting a healthy eco-
Yuen noted the increased risk aversion of investors since the global financial
crisis began five years ago. “ That was partly due to the insufficient and inconsis-
tent disclosure of financial risk information by financial institutions,” he said.
IFRS Foundation Trustees
get together in Hong Kong
Heavyweights from business, government and the
profession take stock of financial reporting agenda
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