The Hong Kong4 ACCOUNTANT MAY 2002

SOCIETY NEWS

HKSA Standard SettingStrategy

Since 1994, the Hong Kong Societyof Accountants (HKSA) has embraceda policy of harmonisation withInternational Accounting Standards(IAS). That policy has been workableup to a point, and has led to Hong KongStatements of Standard AccountingPractice (SSAPs) that are similar, butnot identical, to IAS.

But with the recent radical restruc-turing of the International AccountingStandards Committee into the beefedup International Accounting StandardsBoard (IASB), the IASB’s new aim –which the Society enthusiasticallyendorses – is to achieve convergenceon a single set of internally consistent,high-quality accounting standards. Andinstead of IASs, new internationalstandards that are promulgated will becal led Internat ional FinancialReporting Standards (IFRSs).

The IASB’s move to a single setof international standards is sup-ported by the US Securities andExchange Commission, the EuropeanCommission, and the Canadian Securit-ies Administration. Hong Kong’sSecurities & Futures Commission andthe Stock Exchange of Hong Konghave also taken the step of allowingall listed companies the option of usingIAS.

Federation of Accountants (IFAC) andwe have an obligation to followinternational standards, or to encouragetheir use. Second, Hong Kong is aninternational financial centre. Weshould be seen as using the mostrigorous sort of standards. Otherwise,I don’t think we can retain our positionas a leading financial centre.”

The critical difference betweenharmonisation and convergence is thatthe Society and other national standardsetting bodies might have to bite thebullet on occasion for the sake of globalconvergence, and accept the majoritydecision regarding the adoption ofIASB and IFAC standards even if itcauses local ructions.

“However, this does not mean blindadopt ion of the in terna t iona lstandards,” says Winnie Cheung, theSociety’s Senior Director. “Quite thecontrary, the Society will step up itsinvolvement in the development stageof the international standards in allthree areas of accounting, auditing andassurance, and ethics. Under our newconvergence due process, the Societywill publish almost immediately upontheir release the same internationalexposure drafts and discussion papersissued by the IASB or IFAC forcomment by local stakeholders.” Ms

The Council approved the following nominations/appointments:

1. Mr Alvin Wong, the Society’s President as a memberof the Selection Panel of the Sanford Yung ScholarsProgramme for the 2002 Awards,

2. Mr David Sun as the Society’s representative on thePanel of Judges for the Directors of the Year Awards2002 organised by the Hong Kong Institute of Directors,and

3. Mr Michael Chan as the Society’s representative onthe Working Group and the Editorial Board of the ITRelated Business Ethics Programme.

The Council approved the Society’s sponsorship for theSeventh Regional Asia-Pacific Case Writing Competition2002 organised by the Management Development Centre ofHong Kong of the Vocational Training Council.

Council AnnouncementsThe Council approved/ratified the following submissions,

giving comments on:1. The proposal of the Official Receiver’s Office to

contract out bankruptcy work to the private sectorpractitioners and expressing the Society’s seriousreservations on the proposal,

2. The Consultation Document titled “The DraftSecurities and Futures (Accounts and Audit) Rules”to the Securities and Futures Commission, and

3. The Government’s proposed Closer EconomicPartnership Arrangements in relation to the servicesprovided by the Society’s members, to the FinancialServices Bureau.

“Shifting to a convergence policyis seen by the Society as a logical andnecessary evolution for internationalstandards, one that can help pave theway for true standardisation globallyand one in which Hong Kong shouldactively participate,” said PM Kam,chairman of the Society’s StandardSetting Strategy Task Force. “It isagainst this background that theStandard Setting Strategy Task Forcewas formed by the Council to reviewthe strategy and direction of HKSA’sstandard-setting role, the scope ofwhich includes accounting standards,auditing and assurance standards, andethics standards.” The Task Forcecompleted this review and filed a reportto the Council in July 2001 with themain proposal to move from thestrategy of standards harmonisation, apolicy that has been followed since1994, to adopting a new convergencedue process, that will lead to the long-term objective of full adoption of newand revised IAS/IFRS, InternationalStandands on Auditing (ISA) and theIFAC Code of Ethics. The proposalswere endorsed by the Council in theJuly 2001 Council meeting.

Commenting on the Task Force’sproposed strategy, Kam said there aretwo overriding considerations “HKSAis a member of the International

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SOCIETY NEWS

Cheung said this process seeks to achieve three aims: (1)formulate views on the ED and feed them back to theinternational standard-setters so that standards are adoptedin Hong Kong only after giving the local stakeholdersopportunities to make their views known during the standards-setting due process; (2) identify conflicts with local lawand other local issues and deal with them (seeking lawchanges or seeking changes to the proposed internationalstandard); (3) provide application guidance to members andthe local financial community. “We will also as far aspossible align our standard setting agenda with theinternational standards setters so that we take part in thediscussion process even before the international ED is issued,” Ms Cheung added.

The new system promotes greater transparency andvisibility in the standard setting process. In that same spirit,Mr Kam says the Society has decided to open themembership of its standard-setting committees –the Financial Accounting Standard Committee, the Auditingand Assurance Standards Committee and Ethics Comittee– to non-members. “We would like to includerepresentatives from different sectors – for instance,regulators, bankers, academics and the like,” he says.

The IASB’s mandate also includes a partnershiparrangement with national standard setting bodies in sevenjurisdictions – Australia and New Zealand, Canada, France,Germany, Japan, the US and the UK. Hong Kong will haveinput into the international standard setting process throughMarvin Cheung, chairman and CEO of KPMG in Hong Kongand China, whom the Society chose as its representative onthe IASB’s newly created Standards Advisory Council (SAC).The SAC is a body consisting of approximately 45 individualsfrom different countries and backgrounds whose task is toadvise the IASB on its agenda, priorities and projects.

Mr Cheung regards his role as that of a vital middlemanbetween the IASB and Hong Kong’s accounting and businesscommunity. “This is the only avenue for us to properly airour views on issues,” he says, “so that the IASB will takethem into account when making their final decision onstandards.”

The Big ThreeThe Society’s policy on convergence and its accompanying

standard setting strategy primarily covers three broad areas– accounting, auditing and assurance, and ethics. Of thethree, bringing Hong Kong’s accounting standards intoconvergence with the IASB has proved to be the mostproblematic.

Perhaps the biggest issue involving a potential conflictwith HK SSAPs so far relates to leases (IAS 17). “Everythingbar one or two properties in Hong Kong is on a lease. Theleases standard issued by IASB would require people torecognise them not as property but as leases,” says RogerBest, chairman of the Society’s Financial Accounting

Standards Committee and deputy chairman of the AccountingStandards Advisory Panel. “There is a totally differentaccounting treatment for leases compared to the accountingtreatment currently in place for property, especially in-vestment property.”

Switching from the current Hong Kong SSAP 14, whichallows leased property to be capitalised and re-valued, tothe IAS model could seriously impact the balance sheets ofHong Kong companies, he adds.

Mr Best says the leasing issue affects not only HongKong, but places as disparate as Britain, Singapore andMainland China as well: “This needs to be addressed andthe IASB is aware of it. We are expecting them to come upwith some sort of change to the lease standard later thisyear.”

The issue is so contentious that Mr Kam weighs in andraises the possibility that unless there is relief Hong Kongmay have to depart from its policy of convergence on thisspecific point. “We may not be able to get [the new standard]accepted by our members and the property industry, so wemay be forced, because of pressure from the public, to havea standard that is different from IAS,” he maintains.

Otherwise, the Society is moving ahead with mappingexercises to identify accounting areas in which convergencehas yet to be achieved, including accounting standards onfinancial instruments (IAS 32 and 39), investment property(IAS 40), agriculture (IAS 41) and income taxes (IAS 12).

Similar mapping exercises are being conducted forauditing and assurance standards and standards that relateto ethics. Much of the groundwork for convergence onauditing and assurance standards has already beencompleted, according to David Sun, chairman of the Society’sAuditing and Assurance Standards Committee. “There are37 international auditing standards and we have equivalentHong Kong standards for 35. At this stage, we are prettymuch aligned with the exception of a couple of standards,”he says.

Auditing now also encompasses assurance, which meansthat new international assurance standards will fall underthe auditing category. “Many clients such as securitiesdealers, bankers, insurers and government agencies wantan auditor to check on certain compliance issues,” he says,“so the international standard addressed the needs of thosecompanies and then developed this framework for assurancestandards in order to regulate what auditors should do whenproviding these services.”

The Auditing and Assurance Standards Committee is alsoengaged in developing five new standards that address theauditing side of fund-raising exercises, such as initial publicofferings. “They will apply to those types of exercises whichrequire a reporting accountant to prepare an accountant’s

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report. These standards will address the accounting issuesassociated with restructuring companies, including thoseunder common control, for the fund-raising exercises,” hesays. “The standards will also regulate the comfort areporting accountant may provide to underwriters andsponsors.”

Regarding ethics, few arguments are expected to erupt overinternational standards. “Ethics is a lot easier because it is alot more generic, so convergence should in theory be easier,”notes Mark Fong, chairman of the Society’s Ethics Committee.

The Society currently has 17 Professional Ethics State-ments which are of UK origin.The IFAC has proposed aconceptual approach toindependence which takesinto account threats toindependence, acceptedsafeguards and the publicinterest. “We like [the ethicscode] very much because it isconceptual and providesguidelines, compared to theAmerican style which is veryprescriptive,” says Mr Fong.“It gives examples of the typeof work where the threat [ofa loss of independence] is toohigh, in which case the workmust be denied.”

The IFAC Code systematically outlines five categoriesof threats to be avoided so as to maintain auditorindependence, among them self-interest, self-review,advocacy, intimidation and familiarity. “Auditors arerequired to look at every threat and to ask themselves whatthey can do to minimise those threats,” he adds.

SME QuestionWhile many agree that the development of international

standards is proceeding at a satisfactory pace in a numberof categories, some feel that for others there is room forimprovement. One which has special significance for HongKong concerns different reporting standards forsmall- and medium-sized enterprises (SMEs).

“Hong Kong is full of SMEs and we are keen to developa set of standards for these entities. We would certainlylike IASB to give us guidance, but they are not putting thaton their priority list and that has obviously caused us aproblem,” asserts Mr Kam. “We may either go ahead anddevelop standards ourselves as a ‘quick fix’ or wait fortheir long-term solution. If we develop something and thenIASB come up with an exposure draft which is very different

from ours, that would be very embarrassing.”

Mr Kam argues that the 12-month timetable the IASBcurrently provides to standard setting bodies in outlining itsfuture plans is inadequate. “Our objective is to try andfollow IAS/IFRS but they need to give us a longer timeframe [of what they plan to do] than just for the next 12months,” he says.

Convergence ScheduleThe European Commission has set a target date of 2005

for convergence to take place in Europe. Hong Kong isexpected to reach its goal earlier. “If we don’t have the

standards in place by then, wewill certainly have theexposure drafts out to themarketplace by the end of thisyear,” says Mr Best.

Convergence may haveboth advantages and dis-advantages, but the scaleappears to have tipped infavour of one set of standardsfor all. “It makes a lot ofsense. You don’t have toprepare different sets offinancial statements fordifferent users and markets,and financial statements

prepared in different markets are more comparable. That’sthe good side,” observes Mr Sun. “The challenge, however,is that any one set of interna-tional standards probably wouldnot be able to cater to 100 per cent of the local needs of allcountries. Cultural differences and legislative differencesmay require certain transactions to be accounted fordifferently.” He believes the best way to overcome thesestumbling blocks is to ensure that standard setting bodiesare given ample time in order to identify and address theproblems. “At the end of the day, alternative accountingtreatments may still be needed to allow for thesedifferences.”

Mr Kam predicts that legal conflicts with internationalstandards could be a major obstacle hindering the con-vergence process. “Harmonisation is fine but if you wish tohave convergence, the local laws will have to be in line.Complete convergence will be difficult because it will taketime for local laws to change,” he says.

Nevertheless, the Society intends to forge aheadoptimistically because convergence is, in the end, amore efficient, more sensible approach to dealing withthe increasingly globalised nature of business andcommerce.

(from right) PM Kam, Winnie Cheung, David Sun, RogerBest and Mark Fong commenting on the Society’s standardsetting strategy

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Reaching out to Set World Best Standards :Exposure Draft SSAPs in Hong Kong

In the April 2002 edition of The Hong Kong Accountant,readers would have seen an announcement of the new dueprocess operated by the Society’s Financial AccountingStandards Committee (FASC) in setting Hong Kong’saccounting standards.

A copy of the due process has also been posted on theSociety’s web site at http://www.hksa.org.hk/professional.

One of the Society’s roles is to approve high qualitystandards of financial reporting for application in HongKong. A key element in the standard setting due processis that views on proposed accounting standards are soughtat various stages. The publication of an exposure draft(ED) is one such important stage.

With the new approach to setting the financial reportingstandards in Hong Kong, changes have been made to theprocess by which an ED is published and views on proposednew or revised accounting standards are sought from theconstituency1 . This article explains further.

An increasing number of the FASC’s projects will beconverged with projects being undertaken by theInternational Accounting Standards Board (IASB) – thatis to say, the FASC will be considering project issuesvirtually concurrently with the IASB. Tapping into theglobal standard setting processes has a number ofadvantages for Hong Kong, not only for listed companiesthat may wish to comply with both International FinancialReporting Standards (IFRS) and Hong Kong Statements

The Professional and Technical Department (P&TD) ofthe HKSA Secretariat plays a key role in ensuring that HongKong’s convergence with international standards stays on trackand is up-to-date.

Winnie Cheung, senior director and head of the P&TDsaid, “We have a divisional head in charge of each of themajor standard-setting areas.” Simon Riley is deputy director(accounting) in charge of accounting standards and StephenChan, deputy director (assurance) heads the division onauditing, assurance and ethics. “They are key members ofthe HKSA standards setting team and have the important taskof keeping abreast of the international and local standardsdevelopments, acting as technical advisors to the Society’sstandard setting committees and keeping them apprised ofinternational standards issues. They also act as a communicationbridge between the Society, its stakeholders and theinternational standard setting bodies in matters relating to HongKong standards’ development.”

“We look upon the whole issue of convergence ascomprising two parts – one is product convergence and theother is process convergence,” says Riley. “In February, anew Statement of Due Process was approved for the HKSA’sFinancial Accounting Standards Committee (FASC). The dueprocess covers a number of key areas and should providegreater transparency to the setting of standards in Hong Kong.The FASC will have a project agenda that is harmonisedwith the IASB and the issues discussed at the most recentIASB meeting will also be considered by the FASC. Asummary of the FASC’s discussion will be posted on theHSKA website shortly after each meeting. The FASC hopesto provide all users of accounting standards in Hong Kongwith an ongoing opportunity to tap into the Hong Kongstandard setting process and thereby tap into the IASB’sstandard setting process. Evidence that the FASC’s processesare converged with the IASB’s will not only be demonstratedafter each FASC meeting but also when the IASB issues anexposure draft. Going forward, the IASB’s exposure draftwill typically be accompanied by an Invitation to Commentfrom the FASC so that comments on the one set of proposalscan be taken up by both the IASB and FASC when setting

Keeping Convergence on Trackstandards.”

Another initiative is developing local auditing and assuranceguidance for auditors and professional accountants. “There is anever increasing demand for the issuance of local auditing andassurance guidance as a result of increasing regulatory requirements,changing business environment, and assistance and cooperationsought from the government departments for the Society to issueguidance to professional accountants,” Chan explains.

The Society is also setting in motion the process for adoptingthe International Federation of Accountants’ (IFAC) Code of Ethicsand expects to produce an exposure draft by the fourth quarter ofthe year. “We need to do a mapping exercise to compare theIFAC Code with our existing Professional Ethics Statements andthen decide whether we need to provide additional localinterpretation or guidance to cover areas that are not included inthe IFAC Code,” says Chan.

Relevant legislative developments are monitored as well, suchas the recent passage of the Securities and Futures Bill, whichreplaces 10 securities and futures ordinances and brings HongKong into line with international practice. The new legislationempowers the Securities and Futures Commission (SFC) to requestaccess to the working papers of auditors of listed companieswhere such companies are under investigation by the SFC. “Weneed to come up with guidance to auditors setting out the protocolbetween auditors and SFC in the event the SFC decides to exertthat statutory power,” Chan adds.

The Society has also begun examining a proposed frameworkfor differential reporting standards for SMEs, sometimes alsoreferred to as the “Small GAAP” Project. “We hope to releasethat as an exposure draft in mid-year. It sets out how we proposeto treat the application of accounting standards for smallercompanies,” Riley says.

Though the issue may be taken up by the IASB, Riley hopesthat the IASB will recognise the Society’s work as a valuablecontribution. “This gives us an important opportunity to tap intothe process and to influence the IASB when they are formulatingtheir standards,” he says.

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of Standard Accounting Practice (SSAP) but also generallyfor maintaining the overall standard of financial reportingin Hong Kong. One important implication from the policyof setting Hong Kong’s accounting standards on a basisvirtually concurrent with the IASB is that, when the IASBissues for comment an ED, the Hong Kong constituencyneeds to be ready to comment on that ED:

• As if it is a Hong Kong ED; and• Provide comment to the FASC and/or IASB before

the comment closing date.

The IASB now publishes its EDs not only in traditionalbooklet form but also on its web site http://www.iasb.org.uk. The IASB releases its exposure drafts for commentperiods of typically no more than three months. The FASCrecognises that time is of the essence if commentators inHong Kong are to be permitted sufficient time to commenton what for them is essentially both an International and aHong Kong ED.

To ensure that the Hong Kong constituency has themaximum possible time to comment on an exposure draftthe FASC will typically, with the least possible delay,issue the IASB document together with a document that isknown as a Hong Kong “wrap around” which will:

• Advise that the IASB has issued an ED2 ;• Request comments on the exposure draft for con-

sideration as part of the FASC’s response to theIASB;

• Confirm the FASC’s intention to both not issue aspecific Hong Kong ED on the matter, and to considera proposed new or amended SSAP, following fromthe IASB’s final approved standard; and

• State that comments received will be acknowledgedand may be made available for public review unlessotherwise requested by the contributor.

When considered necessary, the FASC will also includein the wrap around any particular concerns on the ED oradditional areas where comments are requested.

At the time of writing, the IASB has so far publishedone ED since it came into existence last year – namely aproposed limited revision to IAS 19, Employee Benefits.The ED was released for comment during March 2002.The FASC issued this exposure draft in Hong Kong togetherwith its own invitation to comment.

Going forward, every ED will be published in HongKong in both of two ways:

Electronically:• To those who receive electronic copies of the

Members’ Handbook and for whom the Society hasan e-mail address;

• To those who receive copies of the HKSA TechWatchelectronically; and

• On the Society’s web site, at http://www.hksa.org.hk/professional.

On paper:• To those who receive paper copies of the Members’

Handbook (the ED will not, however, be includedas part of a Member’s Handbook supplement); and

• Listed companies and various regulatory and otherinstitutions.

EDs will continue to be published by the Society inpaper form but, because time is of the essence and becausean ED has a limited shelf life, EDs will now no longer bepublished as part of a Members’ Handbook supplement.For those Members’ Handbook subscribers who have paperversions of an ED and who may want some advice as towhat to do with the document now that EDs will no longerbe issued as a Handbook supplement, we encourage youto comment on each and every ED. Paper versions ofEDs, which will be typically in A4 size, can be foldedand hole punched and filed at the back of a Members’Handbook binder, at the discretion of the Handbooksubscriber.

Being a part of the global standard setting process willenable Hong Kong to keep its standards of financialreporting comparable with world best practice.

The Society is reaching out to set standards for HongKong that reflect practices considered to be world bestthat have, in addition to being issued for comment in HongKong, have gone through the robust due process operatedby the IASB.

We encourage all members and others to make sureyou are tapped into the standard setting process.

1 For the purpose of this article, the term “con-stituency” collectively describes all those whohave an interest in the requirements of accountingstandards, including, but not necessarily limitedto: Members of the HKSA, financial statementpreparers, financial statement users, auditors,regulators, and academia.

2 Electronic versions of the wrap around willprovide a link to the IASB website and paperversions of the wrap around will accompany theED and IASB’s Invitation to Comment.

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New Practical Experience RequirementsThe Society has drawn up new practical experience

guidelines for prospective members. The guidelines aredesigned to “strengthen the effectiveness of the practicalexperience component” of its requirements for member-ship.

The Exposure Draft on the new guidelines, issued on 20April 2002, proposes that they take effect on a voluntarybasis from 1 September 2002. The document provides

prospective members with adetailed checklist for ascer-taining the competency stan-dards they must achievebefore they can qualify asmembers of the Society. Thescheme becomes mandatoryon 1 January 2005.

“We hope to make therequirements clearer forstudents who want to becomemembers so they have anadvance view of what expe-rience is appropriate. Inthe past, students have cometo us when they think theyhave met the experience re-quirement but occasionallythere may be a gap in ex-

pectations,” says Georgina Chan, the Society’s Director ofEducation and Training.

The competency standards along with other related topics,such as length of service requirements, the role of employersin the training process, and the inter-relationship betweencandidates, employers and the Society, are outlined in theExposure Draft entitled “Prospective Members’ TrainingGuidelines”, issued by the Society last month. The ExposureDraft is based on the outcome of the “Consultation Paperon the Practical Experience Requirements for MembershipAdmission” issued in September 2000.

Under the new guidelines, both technical or accounting-related and broader generic competencies, such ascommunication skills, are defined.

“Provision is made for the widest possible range ofeligible practical experience, while still retaining a com-mon core in the fundamentals of accounting,” the ExposureDraft says.

Practical Experience ComponentsThe Practical Experience components are divided into

two levels – Basic and Principal. Both categories includeprescribed competencies in financial reporting, auditing,financial management and taxation.

The Basic category incorporates a common core –fundamentals of accounting. The Principal category requiresmore advanced competencies and contains additionalcomponents on management accounting, informationmanagement and technology and insolvency.

Generic competencies are grouped into the following skillareas:

• creative thinking, reasoning and analysis• communications and interpersonal relationships• organisation-specific competencies• personal and behavioural• the business environment and• information technology.

Number of Working Days Per AnnumDefined

The new guidelines do not change the period of practicalexperience required by law, which ranges from three tofive years of full-time employment. However, the Societyhas more precisely defined the duration of experiencerequirement as a minimum of 200 working days per year.Applicants will need to complete a minimum of 600, 800 or1,000 working days’ experience to satisfy their three, fouror five-year practical experience requirement. However,300 working days’ experience must be obtained in each ofthe Basic and Principal categories. Applicants may choosefrom different components within each category as long asthey gain a minimum of 100 days’ working experience inthe competencies of that component.

Enhanced Tripartite RelationshipAnother important aspect of the guidelines aims to enhance

the “key tripartite relationship” between candidates,employers and the Society. The current system advisescandidates to obtain their practical experience under theclose supervision of a qualified accountant. But unlike thepractices that are in place at other professional bodies aroundthe world, no formal system of employer/supervisorauthorisation exists here.

Therefore, the new framework calls for a structuredsystem of supervision of practical experience and guidanceby Authorised Employers or Authorised Supervisors.

Authorised Employers are corporate bodies which havean established training structure in place. “They wouldgenerally be organisations that recruit a number ofaccounting trainees annually”, says Ms. Chan. Employerswho wish to register as Authorised Employers will have toappoint a liaison officer or contact person as a direct channelof communication with the Society. In addition, AuthorisedEmployer should have members of the Society or a recognisedaccountancy body, who will be responsible for the overallsupervision and progress of the prospective members in thefirm’s employ.

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An Authorised Supervisor is an individual registered totrain. He or she should be a qualified accountant workingin public practice, commerce or industry, whose companyis not registered as an Authorised Employer.

Both Authorised Supervisors and Employers areencouraged to monitor the progress of staff in terms of theirdemonstrated competencies annually.

“With this programme, prospective accountants shouldreceive more guidance in training, and know where theystand and in which areas they need more coaching,” saysPM Kam, Chairman of the Society’s Practical ExperienceTask Force (PETF). “Employers will have a more structuredsystem in place in which to train their employees. Theycan measure the progress their employees are making againstthe prescribed competencies laid down by the Society. As aresult, I believe the quality of the staff will be higher.”

The new scheme also calls upon applicants to judge forthemselves when they have achieved the requiredcompetencies by completing the Prospective Member’sRecord of Practical Experience. It provides a checklist ofpractical experience components. Under the current system,applicants have to describe the competencies they haveachieved in detail in their own words. Under the new system,the competencies are listed. Applicants need just to checkoff their achievements, and then fill in details on the durationand have that work experience certified by their supervisors/employers. However, applicants who consider theirexperience relevant but not listed in the competencies, cansubmit the related information for the society’s assessmenton a case-by-case basis.

Overseas ExperienceFor those whose working experience was acquired

overseas, the current policy of recognition will continue toapply until 31 December 2004. Under that policy, workingexperience gained in countries whose accountancy professionis under the jurisdiction of an accepted accountancy bodymay be fully accepted. Those countries include Australia,Canada, New Zealand, South Africa, the United Kingdom,the US and Zimbabwe. Other overseas working experiencemay be accepted if certain conditions are met. Startingfrom 1 January 2005, however, overseas experience will berecognised only if it is gained under an Authorised Employer/Supervisor.

International RecognitionAlong with the introduction of the Society’s Qualification

Programme (QP) in 1999, the Practical Experienceguidelines are seen as another element helping to strengthenthe Society’s bid for international recognition of itsprofessional credential.

“The strategic direction taken in the guidelines is consistentwith the recommendation of an independent team from theInstitute of Chartered Accountants of Scotland (ICAS) toreview the Society’s QP (see March 2002 President’sMessage),” says Lee Kai-fat, the Society’s Registrar andSecretary-General. The Council plans to make a formalapproach to the Chartered Accountants Group for mutualrecognition, through the ICAS review team, during the year.

A Better Professional“This [scheme] is good for Hong Kong primarily because

it brings our practical experience requirements in line withleading accounting organisations globally,” maintains RogerBest, Chairman of the Society’s Registration and PractisingCommittee.

Mr Best believes the new guidelines will provideaccountants with a broader, more well-rounded base oftraining. “By introducing the QP we were trying to upgradethe quality of our professional qualification. The secondstep was tightening up on some of the peripheral issues, oneof which was the Practical Experience requirement,” headds. “We believe that what we are doing is going to producea better accountant at the end of the day.”

Reply Slip Fax No.: 2147 3293To:Director of Education & Training, Hong Kong Society of Accountants

1. Briefing Session on New Practical Experience Requirements(no admission ticket will be sent)

I would like to attend the Briefing Session on 23 May 2002 from6:00 to 7:30pm at Rooms 406-407 of the Hong Kong Convention& Exhibition Centre.

Mr/Dr/Prof/Ms*________________________________________

I am an HKSA member a Registered Student

Others. Please specify: ______________________

HKSA Membership/Student No: ______________________

Contact Tel: _____________Fax No: __________________

2. Exposure Draft on Prospective Members’ TrainingGuidelinesI would like to have a copy of the above Exposure Draft. Pleasepost it to me. My mailing label is completed as follows:

Name: _____________________________________________

Address: ___________________________________________

__________________________________________________

__________________________________________________

* delete as appropriate

Mr PM Kam, Chairman ofthe Practical ExperienceTask Force

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Administration Charge for Withdrawn or Rejected ApplicationsIn view of the volume of administration work involved in processing registration applications, the Council has recently

reviewed and resolved that with effect from 1 July 2002, a $500 administration charge will be levied for applicationsrejected by the Society or withdrawn subsequently by the applicant. This administration charge will be deducted from thefees paid before they are refunded to the applicants. This policy does not apply to retired membership applications,change of particulars of firms and corporate practices, i.e. Forms R-6, RF-3 and RCP-3A/3B.

New Council Ruling

The 16th World Congress of AccountantsKnowledge–based Economy and the Accountant (18-21 November 2002 at

Hong Kong Convention & Exhibition Centre)Press Conference in Beijing

A press conference was successfully held at the China WorldHotel in Beijing on 27 March 2002 to promote the 16th WorldCongress of Accountants, the event of the Society. More than 70guests from major enterprises in Beijing and media representativesattended.

Speakers in the press conference included Dr Liu Yu Ting,Deputy Director-General of the Ministry of Finance, PRC;Dr Jesse Wang, Deputy Secretary General of the China SecuritiesRegulatory Commission; Dr Chen Yu Gui, Secretary-General ofthe CICPA; Mr Alvin Wong, the Society’s President; and Mr PeterWong, Chairman of the Organising Committee of the Congress. (From left) Guest speakers Dr Liu, Dr Wang and

Dr Chen

(From left) Mr Lee Kai-fat, Registrar; Mr Peter HYWong, the OC Chairman; Mr Wong Tak Wai, Alvin,President; and guest speakers

Over 30 reporters attended the press conference

China Economy and Finance ForumsChina’s accession to the WTO signified its determination

to participate in the global market and the knowledge-basedeconomic development, tackling challenges presented bythe trend of globalisation. The accession has also acceleratedthe opening up of China’s investment and trading marketswith a level playing field for international investors. China’scommitment to reform its regulatory systems for both itsaccounting and capital markets regulatory systems will havegreat influence on the pace of its national economicrestructuring. As such, China will expedite theharmonisation process of its accounting and corporategovernance systems with international practices.

In view of this, the Society has planned to organise twospecial China Economy and Finance Forums during the 16thWorld Congress of Accountants. The forums will offer anopportunity for participants to access the latest reports anddiscussions on specific topics, including China’s economicand financial status, accounting regime, as well as the latestdevelopments in the corporate governance framework andregulation of the securities market, etc. Speakers at theforums will include chief officials from the Ministry ofFinance and the China Securities Regulatory Commission.

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SOCIETY NEWS

Discount OffersThe Society has negotiated a number of discount offers for members, registered students and member practices. To

enjoy the offers, you are requested to present your Affinity Credit Card / Membership Card, or in some cases quote yourmembership / studentship number (or CPA practice registration number for member practices), to the merchants uponmaking purchases or placing orders.

For more details, please contact the merchants directly or go to the Member Services column of the Society’s web siteat www.hksa.org.hk/membership.

Enquiries Tel

Academic & Professional Book Centre 2774 3740 / 2398 3044• 15% discount off all regular books (except special and net price items).

Castle Fine Wines # 2904 7788• Up to 12% discount off wine purchases and special discounted wine packages. (Sabrina Lee)

RegistrationRegister now and you can enjoy the US$50 early-bird

discount. On-line registrat ion is available atwww.wcoa2002.com; or contact the Congress Manager,Swire Travel Limited at (852) 2917 0820 / 2968 0222,fax (852) 2590 0099, email: info@wcoa2002.com.

SponsorshipShow your support and position your corporation by

sponsoring this premier event.

For package details, please contact us at (852) 22877219 or Ms Irene Chiu of IDG WORLD Expo (Asia) Ltd

Call for Action

Congress UpdateNew Sessions

Two special Forums on China are added to the afternoonson 19 and 20 November. The Forums will focus on theeconomy, securities and accounting developments in theMainland.

Study ToursFive study tours will be available for Congress delegates

and their accompanying persons. All study tours will becomplemented with attractive sightseeing programmes anddining experience. Most of the tours will depart on 22November 2002:3 night / 4 day Beijing Study Tour(22 – 25 November 2002)

HighlightsIncludes site visit to the National Accounting Institute.

3 night / 4 day Shanghai & Suzhou Study Tour(22 – 25 November 2002)

HightlightsIncludes site visits to the Shanghai Stock Exchange andShanghai National Accounting Institute.

at (852) 2233 9361, email: sponsorship@wcoa2002.com.

ExhibitionDon’t miss the unique opportunity to promote your

products or services by participating in the CongressExhibition. Please contact us at (852) 2287 7001 orMs Irene Chiu of IDG WORLD Expo (Asia) Ltd at(852) 2233 9361, email: exhibition@wcoa2002.com forfurther information.

General InformationCongress website at http://www.wcoa2002.com or contact

the Congress Secretariat at (852) 2287 7016.

1 day Dongguan Study Tour(22 November 2002)

HighlightsIncludes visits to two leading hi-tech factories in Dongguancity, which are Hong Kong based companies.

1 day Shenzhen Study Tour(22 November 2002)

HighlightsIncludes site visits to the Shenzhen Stock Exchange and theShenzhen Institute of CPA.

1 night / 2 day Guangzhou Study Tour(21 – 22 November 2002)

HighlightsIncludes site visit to the Guangzhou Institute of CPA.

CPD HoursHKSA members will earn 18 CPD hours upon completion

of all the Technical Programme of the Congress.

The Hong KongACCOUNTANT 17MAY 2002

SOCIETY NEWS

Reception for December 2001 GraduatesA reception for graduates who completed their professional examinations in December 2001 was held at the YMCA,

Hong Kong, on 3 April 2002. The reception was organised by the Student Training and Development Committee (STDC)and provided graduates with an opportunity to network and share experiences. Almost 140 graduates from the HKSAQualification Programme and the HKSA/ACCA Joint Examination Scheme, their guests and Committee membersattended the function.

The reception kicked off with a welcome speech by Dr Stella Cho, Chairperson of the STDC. She discussed recentdevelopments at the Society, including the provision of e-learning courses, a new delivery medium of the ContinuingProfessional Development programme, etc. Dr Cho’s remarks were followed by a speech by Mr Mark Fong.

Mr Fong, a Managing Partner of Moores Rowland, discussed hispersonal achievements and shared his view on the attributes needed tobecome a successful professional accountant. He has been activelyinvolved in the HKSA’s activities and is currently one of the Society’sCouncil members, Chairman of Ethics Committee, Deputy Chairmanof the Registration and Practising Committee and Deputy Chairman ofSmall and Medium Practitioners Committee. Mr Fong is also a MooresRowland International Executive Committee member and an Asia PacificChairman of Moores Rowland International.

The reception closed with a Q&A session during which the HKSAstaff answered graduates’ questions relating to applications formembership and Practising Certificates.

China INFOBANK Ltd * 2877 6388• 10% discount off the normal retail price on subscription to Mainland business information database service and products.

Gilman Home Appliances 2418 3239• 20% - 30% discount off the listed prices for brand-name electrical appliances. (Steve Tsui)

Jardine Travel Ltd * 2311 8887 / 2844 9669• 4% - 6% discount off normal published airfares (except CAAC). (Man Wong)/(Eve Chan)• Special airfares, hotel rates and tour packages.

The Professional Bookshop 2110 9828• 10% discount off all business books (except special price items).

Note:- Save with the offer marked with a pound (#), all offers are also available to registered students.- The offers marked with an asterisk (*) are available to member practices.

Mr Mark Fong sharing his thoughts on careerdevelopment with the audience

Over 140 graduates and guests attended the reception Dr Stella Cho, Chairperson of Student Training &Development Committee, presenting a souvenir to guestspeaker, Mr Mark Fong

The Hong Kong18 ACCOUNTANT MAY 2002

SOCIETY NEWS

The final adjudication and prize presentation of the 3rd HongKong & Macau Management Case Analysis Competition, organisedby the Management Development Centre of the Vocational TrainingCouncil, was held on 28 February 2002. As one of the major sponsorsof the competition, the Society was invited to nominate two membersto serve on the adjudication panel, namely Council member ProfJudy Tsui and Director of Education & Training Ms Georgina Chan.Both attended the adjudication for the shortlisted teams on the day ofthe event, while the Society’s Registrar, Mr Lee Kai-fat, was one ofthe officiating guests who presented prizes to winners.

The winners of the competition were:Champion : Team B (Messrs Yung Chun Hing, Chu Mun

Chung and Lo Yip Kwong)1st Runner Up : Team A (Mr Fung How Wing, Tommy)2nd Runner Up : Team C (李穗寧小姐、原樂怡小姐、高斌先生)

The purpose of the competition was to enhance the analytical anddecision-making ability of management through case analysis. HKSAhas been a major sponsor of this competition since 1999.

Management Case AnalysisCompetition

Mr Lee Kai-fat (first right), Prof Judy Tsui(second right) and Ms Georgina Chan (thirdleft) together with other members of theadjudication panel

Mr Lee Kai-fat presenting the award to thecompetition champion

Mr Cheng Chi-hung, Edward (鄭治洪) has beenappointed the Inspection Officer of the Non-local Higherand Professional Education Courses with effect from20 March 2002.

Mr Lui Tim-leung, Tim, JP (雷添良) has been appointeda member of the Standing Committee on DirectorateSalaries and Conditions of Service for two years witheffect from 1 April 2002.

The Hon Eric Li Ka-cheung, JP (李家祥) has beenappointed a member of the Vetting Committee of theProfessional Services Development Assistance Schemefor two years with effect from 1 April 2002.

Mr Andy Ngan Yu-loong (顏裕龍) has been appointed amember of the Marine Fish Scholarship Fund AdvisoryCommittee for two years with effect from 1 April 2002.

Public ServiceAppointments

The Society has lost contact with Chan Chi Ming(membership No: A09171).

If you can help locate this member, please call CPDSection on Tel 2287 7098.

Lost Contact

Statistics UpdateAs of 15 April 2002, the Society’s statistics were as

follows:

19,375 Members

3,026 Practising Certificate Holders

1,047 Firms

104 Corporate Practices

The Hong Kong20 ACCOUNTANT MAY 2002

SOCIETY NEWS

In recent years, a number of market reforms have beentaking place in China. In addition, China’s recent accessionto WTO has accelerated the pace of such reforms. Againstthis background, the Financial Services Interest Group(FSIG) organised a study trip to Shanghai from 27 Februaryto 1 March 2002.

This trip was led by Mark Ho, convenor of FSIG, AlexChu and Henry To. A total of 17 members with interest inthe financial services sector participated in this trip. Thepurpose of this trip is to provide FSIG members with anopportunity to gain a fuller understanding of the currentdevelopment of various policy issues and initiatives in thefinancial services sector in China through interactivediscussions with relevant officials and market practitioners.During the trip, the group visited the following organisations:

• China Securities & Regulatory Commission• People’s Bank of China• The Shanghai Stock Exchange

FSIG’s Trip to Shanghai

• China Foreign Exchange Centre• Ministry of Finance & Taxation• Ministry of Foreign Trade & Economic Affairs• Shanghai Small-sized Enterprises Trade Development

Service Centre• Two securities companies

The group was impressed by the presentation made byofficials at the organisations and through discussions, gaineda more in-depth understanding of the policies and marketdevelopment. A few members currently working in Shanghaialso participated in this trip, thus providing the group withsome valuable insight of doing business in China generallyand Shanghai specifically. The group is particularly gratefulfor the hospitality of the officials and friends met in Shanghaiand their treats during the visits.

The FSIG considers this trip to be fruitful and wellreceived and will continue to organise similar trips thatwill serve the needs of its members.

Staff of the Shanghai Small-sized Enterprises TradeDevelopment Service Centre explaining their operation tothe group

Group members and the representatives of the ChinaForeign Exchange Centre

A group photo taken in front of the Ministry of Finance &Taxation

Mr Mark Ho (left), Convenor of the FSIG ExecutiveCommittee and representative of the China Securities &Regulatory Commission

The Hong Kong22 ACCOUNTANT MAY 2002

SOCIETY NEWS

香港會計師公會與香理工大學會計學系，於2002年1月5日合辦了一次中國會計專題研討會。中國財政部馮淑萍部長助理、中國證監會汪建熙副秘書長和證監會首席會計師張為國，在會上作了重要報告。此報告已刊載於本會刊2002年2月號。以下是馮淑萍部長助理就研討會後參加者所提問題之答復意見。

問題一：在制定金融企業會計準則時，遇到的主要核算問題是甚麼？例如壞賬準備等的計提，在很大程度上取決於主觀判斷，是否容易被銀行利用虛增利潤？

答：中國內地在制定金融企業會計制度時，遇到的主要核算及披露問題有兩個：

一.是貸款利息收入的確認和計量問題。原金融企業會計制度對貸款利息收入是在有關貸款發放後按貸款的積數定期確認的，對於部分無法收取或收取可能性較低的貸款利息，無論借款單位是否具有實際還息能力，均作為收入加以確認。按新的企業會計制度和「收入」準則的規定，收入確認的重要條件之一是「與交易相關的經濟利益能夠流入企業」。如何在權責發生制的基礎上，強調收入確認的謹慎性原則，注重提高資產和會計信息的可靠性，是我們考慮對貸款利息收入進行確認和計量的基本出發點。

二.是關於貸款損失準備的計提及不良資產的認定問題。隨著中國經濟體制改革步伐的加快，國有商業銀行過去發放的部分貸款因宏觀經濟環境的變化而面臨著損失風險，相應部分資產的賬面價值與可收回金額存在差異。因此，如何參照國際上通行的對貸款進行五級分類的方法，對金融企業的信貸資產進行分類，並在此基礎上，計提相應的損失準備，是我們制定金融企業會計制度時主要考慮的問題之一。

金融企業會計制度規定計提呆

中國會計專題研討會之問題解答賬準備的方法由金融企業自行確定，但其計提呆賬準備的範圍、提取方法、賬齡的劃分及提取比例，按照法律、行政法規的規定應報有關方面備案。同時規定在確定呆賬準備的計提比例時，企業應當根據以往的經驗、債務單位的實際財務狀況和現金流量等相關信息予以合理估計。這是我們在總結原有金融企業會計制度實施經驗的基礎上，結合國際通行做法制定的，世界上其他國家對金融企業呆賬準備的處理方法也基本類似。至於企業在運用該政策時，能否根據自身情況提足相應的準備、是否會運用該政策來虛增利潤，我們將提供執行國家統一會計制度的具體指南，指導企業具體運用相關會計政策，同時通過強化政府有關部門的會計監督職能，確保相關政策的貫徹實施。

問題二：金融企業會計制度中的披露要求與其他企業準則主要區別在哪裡？

答：《金融企業會計制度》規定的有關披露要求與《企業會計制度》及相關企業會計準則的規定基本一致，比如，對或有事項、關聯方關係及其交易的披露等，《金融企業會計制度》要求對已承兌商業票形成的或有負債、未決訴訟、仲裁形成的或有負債、為其他單位提供債務擔保形成的或有負債進行披露。考慮到金融企業的特點及金融業務的特殊性，制度中增加了對重要金融事項的披露要求，如對不同期限貸款的披露、涉及保險及信托業務等的披露等。再如，銀行為企業開立信用證、開立保函、簽發銀行承兌 票過程中承擔擔保責任等的披露。對於衍生金融工具， 於目前國內這方面的交易還很少，《金融企業會計制度》沒有對衍生金融工具的確認和計量作出規定，只是參照國際慣例，規定了有關衍生金融工具的披露。此外，《金融企業會計制度》要求按貸款風險分類的結果披露貸款的期初數

和期末數，同時披露有關貸款損失準備的相關數額。

問題三：您對國內現有專業會計師水平的看法。若與需要還有距離，未來的解決方案是甚麼？關於國內一些會計師事務所收費標準偏低，在一定程度上限制了某些審計程序的運用等問題，您的看法如何？

答： 中國內地是在上個世紀80年代初恢復和重建注冊會計師制度的，經過20多年的建設，目前已形成了一支擁有近6萬名執業注冊會計師的專業會計隊伍，所有的注冊會計師要通過嚴格的考試，並接受後續教育才能執業。在逐步壯大會計專業隊伍的同時，我們還狠抓了執業規範的建設，從1994年至今，我們先後制定了四批包括獨立審計準則、職業道德準則、質量控制準則和後續教育準則在內的40多個執業準則項目，基本形成了以獨立審計準則、獨立審計實務公告和審計指南為主要內容的獨立審計執業規範體系，這對於統一和規範注冊會計師的執業行為，提高整個專業會計隊伍的執業水平起到了積極的作用。我們所制定的會計準則和獨立審計執業規範在最大程度上遵循了國際通行的做法，並充分考慮到中國內地的實際情況以及會計改革和發展的方向。

我國的會計專業隊伍目前仍處在發展和完善的階段，在從計劃經濟向市場經濟過渡的過程中，需要一個逐步積累經驗的過程。目前注冊會計師行業在隊伍整體素質、執業規範、職業道德等方面都還存在一定的差距。為此，在今後相當長的一段時期內，我們要在推進注冊會計師制度建設，完善行業法律規範和獨立審計規範體系，加強執業人員素質教育，積極應對加入WTO後會計行業面臨的機遇和挑戰的同時，通過加大行業監管力度，嚴懲弄虛作假行為，促進執業質量提高，全面提升行業的社會公信

The Hong KongACCOUNTANT 23MAY 2002

SOCIETY NEWS

力。同時還要順應行業管理體制改革的大方向，循序漸進，逐步實現行業自律化管理。隨著我國市場經濟的進一步發展，我國的注冊會計師行業將逐步發展、壯大和走向成熟。

審計收費與注冊會計師實施的審計範圍和方法有著直接的關係。目前，國內的審計收費水平基於各種原因，普遍偏低。有些是根據成本效益原則，客戶付費與要求獲得的服務是相當的。當然，低廉的審計收費在一定程度上限制了注冊會計師審計查證的範圍，約束了審計方法的創新和利用，因此，像計算機審計這一類的審計方法，目前還局限在一個很小的範圍之內，得不到充分的利用和發揮。對於會計師事務所等中介機構的收費問題，目前有些地方政府根據當地情況對收費標準作出了規定，指導會計師事務所與客戶就有關審計等中介業務的定價。我認為，獨立審計是注冊會計師提供的一種專業服務，與其他商品一樣，除取決於所提供服務的質量外，還受市場供求關係等諸方面的影響。隨著市場經濟的進一步發展，審計收費將與審計範圍和方法等一起逐步完善起來，這有利於提高執業質量，並保持較高的專業水平。

問題四：財政部作為制定全國會計制度的機構，吸收國外會計專業人員非常重要，請問財政部會否考慮聘用海外會計專業人員作顧問？

答： 借助國際力量制定我國會計準則，一直是我國會計改革堅持的一種工作方式。1992年開始著手建立會計準則體系時，在世界銀行的幫助下，我們聘請了德勤國際會計公司的有關專家為準則起草過程中的有關問題提供意見和建議，確保我國的會計準則制定工作在高起點和充分借 國際慣例的基礎上進行，目前德勤國際會計公司仍是我們的諮詢顧問。同時，在有關準則的制定過程中，還多次召開國內外專家（包美國財務會計準則委員會、日本會計準則委員會、國

際會計準則委員會及其他國家準則制定機構的代表）參加的準則國際研討會，充分聽取國內外專家對準則徵求意見稿的意見。同時我們還分批派出工作人員到國外會計準則制定機構和國際會計公司培訓、實習，了解國外有關會計準則制定的經濟環境和背景。到目前為止，我們已陸續派出工作人員到美國、英國、澳大利亞、加拿大等國家學習和培訓，並將學習到的有關經驗應用到我們的會計準則制定過程中。另外，在中國加入世界會計師聯合會後，我們又被吸收作為國際會計準則委員會的觀察員及國際會計準則委員會改組後的諮詢委員會成員。在此過程中，我們積極參與國際會計準則的制定並加強與其他國家會計準則制定機構的交流與合作，對於國際上通行的做法，只要是適合我國實際情況的，我們就採用。

問題五：有六個部門監管企業執行會計準則和會計制度的情況，其中一個是財政部。請簡單介紹財政部怎樣會同其他部門進行監管？不同的監管機構，如MOF，CSRC，SAT等，它們對會計準則/制度的解釋有所不同，口徑不一。你認為企業怎樣才可確保適當使用會計準則，同時，又達到該些機構的要求？

答：《中華人民共和國會計法》賦予財政部管理全國的會計工作、制定國家統一的會計制度的職能，同時負責解釋國家統一的會計制度。依照《會計法》，財政部門對各單位依法設置賬簿的情況、會計資料真實完整性的情況、會計核算情況、會計人員從業資格制度執行情況、會計師事務所出具審計報告的內容和程序等實行監督，對違反《會計法》行為的單位和相關責任人員給予行政處罰。《財政部門實施會計監督辦法》規定了財政部門實施會計監督的程序。

審計、稅務、人民銀行、證監管、保險監管等部門依據

《審計法》、《稅收徵收管理法》、《中國人民銀行法》等法律，在法定範國內履行審計監督、稅務監督等法定職責，上述政府部門依法實施的監督包含了對特定單位會計資料的監督檢查。上述部門的會計監督與財政部門會計監督相比，目的、範圍、內容都有區別。為避免上述部門出現多頭監督、重複檢查的情況，《會計法》第三十三條規定，政府部門對有關單位的會計資料依法實施監督檢查後，應當出具檢查結論。有關監督檢查部門已經作出的檢查結論能夠滿足其他監督檢查部門履行本部門職責需要的，其他監督檢查部門應當加以利用，避免重複查賬。對企業違反國家有關會計法規的行為，財政部門有權予以查處，情節嚴重的，按《會計法》的規定移送司法機關處理。其他有關部門如稅務部門對於企業由於會計信息不真實而影響到合法計稅的，稅務部門按照國家有關稅收徵收管理法規的規定，可以予以處罰。

應該指出的是，《會計法》明確規定，由財政部門制定國家統一的會計制度，其中包括對有關制度的解釋。按照這一規定，財政部門制定國家統一的會計制度及對制度進行解釋是法律賦予的職能。財政部門對有關制度及規定的解釋與制度本身一樣，具有法律效力，其執行受到國家法律的保護。其他有關監管部門在不違反國家統一會計制度及有關解釋的前提下，可以要求企業提供基於特定行業或監管需要的會計信息，但是，這行為也要受到《會計法》中相關規定的約束。

問題六：講稿中提到香港會計界可以協助國內會計準則的制定過程，香港會計師在國內就業是否會獲得一定的優待？

答： 我國加入WTO後，承諾對外國直接投資的事務所和中介機構實行「國民待遇」原則。這一規定也適用於香港會計師到

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內地執業的情況。香港作為亞洲重要的金融中心和貿易中心，在發展市場經濟方面積累了很多成功的經驗。香港許多熟知國際會計慣例並具有豐富經驗的會計、審計人才，基於地緣優勢，特別是對內地情況的了解，相對於其他國家專業人才，在內地開展業務更具有競爭優勢。因此，我認為，加入WTO後，香港會計職業界在內地的執業空間會更大，我們歡迎香港會計界人士到內地參與會計人才教育和培訓，促進香港和內地會計業的交流和發展。

問題七：中國會計改革對今後國內企業到海外上市集資是否有幫助？最近在港上市的內地民營企業因會計或公司透明度不高，導致股票市場極為波動，亦引起市場高度關注，當局會否加強有關方面的監管？

答： 中國近十幾年來的會計改革已使現行會計標準在很大程度上與國際會計慣例接近，新的企業會計制度和會計準則體系增加了對企業會計信息充分披露的要求，提高了企業會計信息的透明度。應該說，我國的會計改革及會計標準國際化，降低了國內企業到海外籌資的成本，增加了會計信息的透明度與可比性。

到香港上市的內地民營企業，按照屬地原則，應遵循中國《會計法》的規定，其會計核算應按照中國統一會計制度及有關會計準則的原則進行。同時，為了適應香港上市地關於證券上市管理的要求，企業應以按照中國會計制度編制的報表為基礎，按照香港會計準則的要求對部分項目進行調整編報。對於其信息披露不充分的部分，香港證券監管部門及證交所有權要求其進行改進，以保護投資者利益。

問題八：財政部所制定的會計準則

等，在地方並未得到完全執行，稅務機構很多時候要求企業及注冊會計師更改審計報告以配合稅法規定，財政部對這一做法有何對策。財政部有沒有舉辦關於會計的研討會給稅務機構官員，以幫助他們了解及增加對中國會計最近發展的認識？

答： 關於會計與稅務的關係問題，兩者是基於不同目的的報告體系。會計信息的主要服務對象是投資者、債權人及其他使用者，幫助他們對企業的財務狀況和經營成果作出合理評估；稅收主要是基於國家財政收入的角度，確保有關收入的實現。因此，會計標準的規定與稅法的規定存在一定的差異是必然的。企業在實際交稅時，在根據會計標準計算出應稅利潤的基礎上，還要適應稅法的要求進行相應調整，從而計算出按照稅法規定的實際納稅數額。這一情況在其他很多國家也存在，比如美國，在從會計利潤向稅務利潤轉化時，應調整的項目更多，這也是在西方國家的會計公司納稅會計服務佔很大比例的重要原因。至於問題中提到的稅務部門要求企業和注冊會計師更改審計報告的問題，我們並沒有得到任何查證。實際上，按照稅法從會計利潤向應稅利潤的調整，並不涉及到注冊會計師出具的審計報告，如果這種現象確實存在，也屬個人行為，並不符合《會計法》和《稅收徵收管理法》的規定。

在會計改革的過程中，我們一直注意與稅務部門的溝通和配合，使雙方互相了解各自的政策，盡量減少會計規定與稅收規定的差異，避免企業出現納稅調整事項日益增長的情況，國家財政部門出台的相關政策法規定期以文告形式予以刊登，幫助稅務人員和企業及時了解情況。同時在有關政策出台前，我們也注意聽取包括稅

務部門在內的方方面面的意見。相關法規發佈後，我們也與國家稅務總局及其他各級稅務部門一起，組織宣傳會計法規制度，促進稅收徵管人員對會計規定的了解。如《企業會計制度》發佈後，我們為稅務人員舉辦專門的講座，幫助稅務人員了解會計制度的規定及與稅法中相關規定的差異。

問題九:中國雖已建立起比較完整的企業會計核算法規體係，但是市場不斷變化，以致很多地方未被列入會計準則的考慮範圍之內。在這種情況下，我們應該（1）以企業會計準則的內容為基礎作出解釋，或是（2）尋求國際認可的會計準則？

答： 根據《會計法》規定，「國家實行統一的會計制度。國家統一的會計制度由國務院財政部 門 根 據 本 法 制 定 並 公佈」，因此直接採用國際會計準則不符合我國現行法律的要求。我國目前已經建立起一個包括《會計法》、《企業財務會計報告條例》、國家統一會計制度及各項具體會計準則在內的比較完整的會計核算法規體系，但市場情況千變萬化，新的業務和交易不斷出現，會計處理需要對這些紛繁複雜的經濟業務作出快速反應，以規範企業的核算。對於那些以前沒有作出明確規定的新興業務，我們將充分借 國際慣例，制定出既符合國際慣例，同時又考慮我國的具體情況，切實可行的處理辦法。根據以往的經驗，對這類問題的會計處理我們將以暫行規定或問題解答的方式予以發佈，指導企業的實踐。對於企業提出的問題，我們力求做到有問必答。根據《會計法》的規定，暫行規定或問題解答等是國家會計法規的一部分，在有關正式準則出台前，對企業具有約束效力。

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The Small and Medium Practitioners Committee (SMPC) of the Society and the Hong Kong Trade DevelopmentCouncil (TDC) co-organised an Accounting Services Mission to Guangzhou and Shunde on 9 and 10 April 2002.

Led by the President, Mr Wong Tak Wai, Alvin, Mr David Tak-kei Sun, Vice President, and Mr Paul MP Chan,Council member and Chairman of SMPC, the HKSA delegation was comprised of representa tives from 20 memberpractices. The TDC Chairman, Mr Peter Woo, and several TDC Council members also attended part of the two-dayevent.

Accounting Services Mission to Guangzhou and Shunde

Courtesy VisitsApart from promoting the professional services of Hong

Kong CPAs to Guangzhou and Shunde enterprises, thedelegation a lso took this opportunity to meet with someMainland authorities to gain a better understanding of theirpractices.

In this connection, the delegation visited the GuangdongState Administra tion of Taxation (廣東省國稅局), theGuangdong Provincial Local Taxation Bureau (廣東省地稅局) and the Shunde Economy & Trade Bureau (順德市經濟貿易局).

Mission HighlightsTwo conferences entitled “Turn in to International Prac-

tices through Hong Kong’s Accounting Services 香港會計專業服務︰協助內地企業與國際接軌研討會” wereheld on 9 and 10 April in Guangzhou and Shunderespectively. Around 350 participants from Guangzhou andShunde enterprises attended.

Participants flooded the consultation kiosks

Chaired by Mr Paul MP Chan, three panel speakersfrom the Society addressed the conferences on the followingtopics:

Mr David Tak-kei Sun企業管治及內部監控制度的建立與運作

Mr Mark C Fong企業競爭能力及效率

Mr Eugene PC Fung資產併購及項目評估

There was also an on-the-spot consultation session heldin Shunde in which free consultation services were offeredto participants by the HKSA delegation. The response wasoverwhelming.

The delegation pictured with the representatives of theGuangdong State Administration of Taxation

During the visits, the delegation was warmly receivedby the authorities and the following topics were discussed:

Guangdong State Administration of Taxation (GSAT)Ms Tan Huijian, Chief Accountant of the GSAT, briefed

the delegates on:a. Import and export tax reimbursement policy 進出口退稅政策

b. Foreign investment policy外商投資政策c. Information and infrastructure policy訊息化建設政策

Guangdong Provincial Local Taxation Bureau (GPLTB)Mr Huang Yanguang, Deputy Director-General of

GPLTB, gave delegates a brief introduction on the followingissues:

a. A new registration programme for certified practisingtaxation professionals (註冊稅務師) will be launched.

b. The introduction of electronic immigration clearanceprocedures between the borders has created practicaldifficulties for the PRC tax authorities to ascertainwhether travellers should be subject to IndividualIncome Tax (IIT) 《個人所得稅》in that under thenew procedures, the Mainland immigration authoritieswill no longer impress a chop on the Mainland Re-entry Card (回鄉咭) of travellers. In the absence ofsuch record travellers will find it difficult to provetheir length of residence to the PRC tax authority.

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Mr Wong Tak Wai, Alvin, the President, addressing at theShunde conference

Board’s Shenzhen VisitThe Association organised visits to the OUHK Consultants (Shenzhen) Limited, Shenzhen Institute of Certified Public

Accountants (深圳市註冊會計師協會), Caritas Centre (深圳市明愛中心), Guangshou Progress Consultany Services CoLtd, Shenzhen Shenxin Certified Public Accountants, and Chan, Wong, Chung Consultant Service (Shenzhen) CompanyLimited, all of which took place on 11 January 2002.

The trip was led by the China LiaisonCommittee’s Chairman Mr James Kong.Attendees were President Mr George Ho,together with four Board membersincluding Dr Joseph S W Yau, MessrsDennis Chung, Joseph Y K Yau and JackNg. Also joining the group were theDirector of Education and Training ofHKSA Ms Georg i na Chan, t heAssociation’s Secretary-General andAssistant Administrative Officer.

The visit aimed at exploring thepossibility of introducing the Association’sAccounting Technician Examinations andBook-keeping and Accounts Examinationin Shenzhen, and to establish relationships with the relevant institutions. The group was well received by all the institutions,and there was an interesting and lively exchange during the various meetings. Plans for future co-operation, in particularoffering the Association’s courses and examinations in Shenzhen, formed a major part of the discussions, and all partieswere keen to take these matters forward.

HKAAT News

HKAAT delegates pictured with the officials of Shenzhen Institute ofCertified Public Accountants

Shunde Economy & Trade Bureau (SETB)Professor Zhou Guanxiong, Director of the SETB, briefed the delegates of the recent economic development in Shunde

and held an insightful discussion with the delegation on the future of the Hong Kong economy.

The Hong Kong delegation was deeply impressed by the warm hospitality extended by the Mainland participants duringthe entire visit and our delegates believed that the mission had helped our profession establish its business links withenterprises at the Pearl River Delta region.

Panel speakers respond to questions from the floor at theGuangzhou conference

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SOCIETY NEWS

Chinese New Year Activity: Tour to Produce Green GardenOn 3 March 2002, around 48 participants joined the Association’s Chinese New Year activity to enjoy a “green”

Sunday. A tour bus was arranged and we started our journey at Tsimshatsui.

Around 9:00 a.m. we arrived at Sheung Shui Produce Green Garden “綠田園”. Most of the participants joined afarming course. We were able to experience what it’s like to do basic farming activities, like ploughing, seeding, seedpreparation and watering. After a dry winter, it was not easy to loosen the soil for seeding! After that we had the chanceto walk around in the garden, feeding the rabbits and goats. Some of us also bought fresh vegetable harvested by thefarmer.

The group then had a delicious vegetarianluncheon at a temple in Tuen Mun. Finally,we set out on the last stop in our journey: theFung Hang family walk in Luk Keng. The familywalk is designed for family members to enjoylight hiking along gentle slopes. We enjoyedthe fresh air and beautiful scenery of Sha TauKok and Shenzhen during this 45 minute walk.

In the late afternoon, we started to makeour way back. We all greatly enjoyed taking aday’s break from the busy life of the city totour around the countryside. Group photo after the visit to Produce Green Garden

The Council recently approved the registration of the following firm and corporate practices with effect from April2002:

Firm Name of Sole Practitioner

APACT CERTIFIED PUBLIC ACCOUNTANTS Chan Sek Kwan, Rays安博會計師行

New Registrations

Corporate Practice Name of Directors

LEUNG & PUEN CPA LIMITED Leung Nai Chau, Jesse, Puen Wing Fai梁潘會計師事務所有限公司

ORIENTAL LINK CPA LIMITED Ho Chiu Fan, Law Fuk Chuen, Wong Tak Chuen華盈會計師事務所有限公司

December 2001 Accounting Technician Examination Top StudentsPaper Name of Top Student

Financial Accounting I Miss Ha Wing Lan 夏詠蘭

Management and Economics Mrs Yiu Lai Sin 姚麗倩

Cost Accounting Miss Chow Shing Sze, Kathy 周成詩

Statistics and Information Technology Mr Lau Yan Wing 劉恩榮

Hong Kong Taxation Mr Lo Ka Ki 盧家麒

Hong Kong Business Law Mr Lo Ka Ki 盧家麒

Financial Accounting II Mr Au Yeung Chun Kit 歐陽俊傑

Auditing Miss So Ngai Kwan 蘇藝君