GAA Accounting

The Journal of the Global Accounting Alliance

18/04/2016
by GAA Accounting
Comments Off on A new life on leases

A new life on leases

By George W. Russell

Implementation of IFRS 16 Leases will have a dramatic impact on Hong Kong’s extensive property, shipping and aviation businesses, as well as increase balance-sheet transparency for investors, as George W. Russell reports.

For many Hong Kong companies, corporate balance sheets will look a lot busier from 1 January 2019, when IFRS 16 Leases goes into effect. This is a global standard, but Hong Kong, with its heavy leasing culture in key sectors such as property, shipping and aviation, will be particularly affected. Continue Reading →

18/04/2016
by GAA Accounting
Comments Off on New kid on the blockchain

New kid on the blockchain

By Vikram Kumar

If blockchain is essentially just a database, has its potential impact been overestimated?

In 2015, blockchain had all the frothy bubbles of a new wave crashing. Headlines called it the next big thing. Venture capital fuelled start-ups at a record rate. Patent applications flooded in. Big name companies jumped on the bandwagon with their own version of the potential. Continue Reading →

18/04/2016
by GAA Accounting
Comments Off on Debate heats up as auditors cool off

Debate heats up as auditors cool off

The International Ethics Standards Board for Accountants has issued proposed changes to Code of Ethics in an effort to address concerns relating to the long association of personnel with an audit or assurance client.

The International Ethics Standards Board for Accountants (IESBA) is in the midst of a second consultation in its efforts to reinforce global independence rules to address public concerns about the threats to auditors’ independence created by their long association with audit clients. While a number of jurisdictions such as the European Union (EU), Brazil and India have chosen to introduce mandatory firm rotation (MFR) to address these concerns, IESBA determined that the evidence concerning the effectiveness of MFR was inconclusive. Instead, IESBA will seek to further strengthen the partner rotation requirements in its Code of Ethics for Professional Accountants (the Code). Continue Reading →

18/04/2016
by GAA Accounting
Comments Off on The voice of reason

The voice of reason

By Stephen Tormey

Éilish Finan has enjoyed much success in her career – both in practice and business. She is now putting her knowledge and experience to good use as a non-executive director on the boards of some of the best-known organisations in the country, writes Stephen Tormey.

Éilish Finan’s career has spanned practice, business and – most recently – the boardroom. While her success can be contributed in part to her willingness to embrace opportunities, as a student of electronic engineering at Trinity College Dublin Éilish took a measured approach to professional life that has stood her in good stead. Continue Reading →

18/04/2016
by GAA Accounting
Comments Off on Improving audit quality control

Improving audit quality control

By Julia Morris

The Engagement Quality Control Review is a pivotal means of safeguarding audit quality in audit firms, writes Julia Morris.

The Engagement Quality Control Review (EQCR) is a key internal quality control used by audit firms on audits of financial statements. However, in a recent review, the Financial Reporting Council (FRC) found that EQCR is not applied as consistently as it could be to support the delivery of high-quality audits. Continue Reading →

18/04/2016
by GAA Accounting
Comments Off on HKICPA and IFAC roundtable report: 10 principles for good global financial regulation

HKICPA and IFAC roundtable report: 10 principles for good global financial regulation

HKICPA, in partnership with International Federation of Accountants, held the first in a series of global financial regulatory roundtables last December in Hong Kong. The roundtable report, From Crisis to Confidence: A Call for Consistent, High-Quality Global Regulation, has just been published.