Hong Kong sets clear timeline for ISSB Standards adoption to boost transparency and sustainability in the financial sector.
Roadmap for Sustainability Disclosures
The Hong Kong Government has taken a significant step towards promoting sustainability disclosures in the region. The new roadmap sets out a clear timeline for the adoption of the International Financial Reporting Standards – Sustainability Disclosure Standards (ISSB Standards) by publicly accountable entities (PAEs).
HKICPA is also working on the implementation of the IFRS 17 insurance core principles, which will be effective from 1 January 2024.
HKICPA’s Progress on the Hong Kong Listing Rules
HKICPA, the Hong Kong Institute of Certified Practising Accountants, has been actively working on the Hong Kong Listing Rules (HKS) since 2020. The HKS are a set of rules that govern the listing of securities on the Hong Kong Stock Exchange (HKEX). The rules are designed to ensure that listed companies comply with international accounting standards and provide transparency to investors.
Key Objectives of the HKS
HKICPA has been working closely with the HKEX and other stakeholders to develop the HKS. The Institute has also been engaging with listed companies and other market participants to gather feedback and input on the proposed rules.
Progress Update
HKICPA is on track to finalise the HKS by the end of this year, aiming for an implementation date of 1 August 2025.
The Council will also support the development of a new sustainability reporting framework, which will be designed to meet the needs of Hong Kong’s unique business environment.
The Importance of Sustainability Assurance in Hong Kong
Sustainability assurance is a critical component of Hong Kong’s regulatory regime, and the Accounting and Financial Reporting Council (AFRC) plays a vital role in advancing this area. The AFRC is responsible for promoting high-quality financial reporting and ensuring that companies provide accurate and transparent information to stakeholders. In the context of sustainability assurance, the AFRC works closely with various stakeholders, including regulators, industry associations, and companies, to develop and implement effective standards and guidelines.
Enhancing Sustainability Disclosures
The AFRC is committed to enhancing sustainability disclosures and data quality through various initiatives.
The ISSB Comprehensive Plan: A Global Effort
The International Sustainability Standards Board (ISSB) has developed a comprehensive plan to ensure the adoption and support of its standards globally. This plan is the result of collaboration between the ISSB and the Hong Kong Institute of Certified Public Accountants (HKICPA), with the guidance of the Steering Group.
The Role of the Steering Group
The Steering Group plays a crucial role in the development and implementation of the ISSB comprehensive plan. The group provides guidance and oversight to ensure that the plan is effective and aligned with the ISSB’s objectives.
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