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Issue 7 Volume 17 July 2021 DRIVING BUSINESS SUCCESS PLUS: PROFILE Deniz Güven, Chief Executive Officer of Mox Bank ACCOUNTANT PLUS NiQ Lai FCPA, Chief Executive Officer of Hong Kong Broadband Network Group SECOND OPINIONS How can common standards combat greenwashing? BEST IN CLASS How the Institute’s specialist training programmes are helping to raise industry standards

PRESIDENT’S MESSAGE APLUS July 2021 1 Congratulations to Hong Kong’s two Olympic medallists! Fencing gold medallist Edgar Cheung Ka-long, and swimming two-time silver medallist Siobhan Haughey – who is the daughter of two of our members, Darach Haughey and Canjo Leung. Both medallists have proudly represented Hong Kong on the highest international stage, and shown the excellence and diversity of our people. Three medals means this is now the best Olympics Hong Kong has ever had and hopefully is the start of more medals over the remaining events. Their achievements are inspirational for the next generation of Hong Kong – showing that we can lead the world – and we should seek to emulate them in our working lives. While the Olympics, like the UEFA EURO 2020 championship in June-July, were delayed by a year, the fact that they’ve been able to go ahead (albeit, with restrictions on attendances) shows that life is adjusting to the COVID-19 situation. Hopefully in the next few months we will return to more normality. I’m sure many of you are ready to travel again, I know I am keen to meet with my clients and business partners. As well as our sporting stars, this month we are also celebrating the achievements of past and current Council members, and Institute members who were awardees on the Hong Kong government’s Honours List for their distinguished service. Congratulations go to past Council lay member Chow Chung Kong (Grand Bauhinia Medal); Ex-officio Council member Charlix Wong (Silver Bauhinia Star); Institute members Chan Ngai Sang, Kenny, Ho Jock Chu, and Ayesha Macpherson (Bronze Bauhinia Star); and Past President Wilson Fung and past elected Council member Wong Hin Wing, Simon (Medal of Honour). The Institute has been hard at work since last month’s announcement by the government on its proposal to further reform the regulatory regime of the profession. At the start of the month we held the second members’ forum with the Financial Reporting Council, where speakers discussed how they planned to regulate the profession in the future. A recording of this forum, alongside the first featuring the Financial Services and the Treasury Bureau is available on the reform webpage – also launched this month. As well as the webpage, which brings together relevant information on the proposals and the potential consequences for the Institute and its members, this month we also released a survey. The survey is our way of carrying out wider consultation on the proposal to ensure that all views are collected and considered. I encourage you to take the time to complete the survey so that we can effectively represent them when commenting on the draft legislation and discussing transitional arrangements. There’s not much time left to complete the survey, as it closes on 4 August. If you have already shared your views with us, thank you. The revamped Best Corporate Governance and ESG Awards are open for entries. Now in its 21st year, the awards have seen significant improvements in corporate governance disclosures over the years. This year, the awards have been renamed and refocused this year to reflect the increasing importance of environmental, social and governance (ESG) reporting, and to encourage companies and organizations to integrate the oversight and implementation of their corporate governance and ESG, as well as uplift the standards of disclosure and practices in both areas. You can’t have good corporate governance without good ESG, and you can’t have good ESG without having a good corporate governance structure in place, which is why we have placed increased emphasis on ESG this year. As the market demands more accurate and reliable ESG information from companies, assurance on ESG reports will become increasingly important in helping to build stakeholders’ trust in the quality of the information disclosed. Please enter your company or organization into the awards by 9 August. It’s a special issue of A Plus this month, as we focus on the Institute’s five specialist training programmes. Read the two articles, featuring course directors and programme graduates discussing the programmes, how they help specialists to develop, and why specialist training is so important. The Institute offers a wide range of training, in-house and in partnership with others, so please do check out how we can help you to develop in your career. August would typically be a month off of Council meetings, however this year we have given ourselves so many tasks to complete that we will be holding a Council meeting. As we approach the end of summer and autumn, there’s still plenty for us to be getting on with in order to prepare the profession and the Institute for the future, the results of the reform survey, and how we will work with the government on the implementation of the regulatory reform. Raymond Cheng FCPA (practising) President Dear members, “Fencing gold medallist Edgar Cheung Ka-long, and swimming two-time silver medallist Siobhan Haughey – who is the daughter of two of our members, Darach Haughey and Canjo Leung. Both medallists have proudly represented Hong Kong on the highest international stage, and shown the excellence and diversity of our people.”

CONTENTS Issue 7 Volume 17 July 2021 NEWS 01 President’s message 04 Institute news 06 Business news FEATURES 08 The experts The Institute’s specialist training programme course directors on how their courses equip CPAs with the right knowledge to add value 14 The future specialists The Institute’s specialist training programme students on how the courses have prepared them for the next stage of their careers 20 Second opinions How can common standards combat greenwashing? 23 Thought leadership Findings from the Institute’s survey about the opportunities available in the GBA for CPAs 24 Leadership: Deniz Güven The Chief Executive Officer of Mox Bank on how virtual banks will change the way we spend 31 How to Roger Lo, Senior Manager of Risk Advisory, BDO, on the steps companies can take to prevent cyberattacks 32 Accountant Plus: NiQ Lai FCPA The Chief Executive Officer of Hong Kong Broadband Network Group on how success comes from being a self-starter and looking at the bigger picture 38 Meet the speaker What to expect from an e-learning course on investing in Asian high-yield bond markets SOURCE 39 Accounting for share options granted by holding companies to employees of subsidiaries Findings from the Institute’s practice review programme 40 Impact of the Inland Revenue (Amendment) (Miscellaneous Provisions) Ordinance on tax practitioners A look at the Institute’s response 24 Banking on the future 14 The future specialists Students of the Institute's specialist training programmes on the satisfaction that comes with learning from like-minded professionals and advancing in their careers

DRIVING BUSINESS SUCCESS About our name A Plus stands for Accounting Plus. It represents a profession that is rich in career options, stays relevant amid rapid changes, and adds value to business. This magazine strives to present the global mindset and varied expertise of Institute members – Accountants Plus. Editor Gerry Ho Email: gerry.ho@mandl.asia Managing Editor Jemelyn Yadao Junior Copy Editor Jeremy Chan Associate Editor Nicky Burridge Contributor Erin Hale Registered Office 2/FWang Kee Building, 252 Hennessy Road, Wanchai, Hong Kong Advertising enquiries Advertising Director Derek Tsang Email: derektsang@mandl.asia ISSN 1815-3380 President Raymond Cheng Vice Presidents Rosalind Lee Ken Li Chief Executive and Registrar Margaret W. S. Chan Director of Corporate Communications Dr Wendy Lam Associate Director of Corporate Communications Paul Smith Editorial Coordinator Maggie Tam Office Address 37/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Tel: (852) 2287-7228 Fax: (852) 2865-6603 Member and Student Services Counter 27/F, Wu Chung House, 213 Queen’s Road East, Wanchai, Hong Kong Website: www.hkicpa.org.hk Email: hkicpa@hkicpa.org.hk A Plus is the official magazine of the Hong Kong Institute of Certified Public Accountants. The Institute retains copyright in all material published in the magazine. No part of this magazine may be reproduced without the permission of the Institute. The views expressed in the magazine are not necessarily shared by the Institute or the publisher. The Institute, the publisher and authors accept no responsibilities for loss resulting from any person acting, or refraining from acting, because of views expressed or advertisements appearing in the magazine. ©Hong Kong Institute of Certified Public Accountants July 2021. Print run: 7,180 copies The digital version is distributed to all 46,505 members, 16,821 students of the Institute and 2,358 business stakeholders every month. to the bill and the new penalty provisions 43 Technical news WORK-LIFE BALANCE 46 Teaching from experience Facilitators of the Institute’s Qualification Programme on the joy that comes with nurturing the next generation of CPAs 52 Young member of the month Jackson Li CPA, Internal Audit Manager at the Hong Kong Productivity Council 54 Leisure Plus Spotlight on the best cycling paths in the city, and what members are currently reading and listening to 56 Let’s get fiscal Your home office will never truly replace the real thing, says Nury Vittachi 32 Connecting the city NiQ Lai FCPA, Chief Executive Officer of Hong Kong Broadband Network Group, on how he overcame hardships to qualify as an accountant and work his way up to then growing one of the city’s largest Internet providers 54 46 Teaching from experience Leisure Plus

NEWS The Institute has set up a dedicated webpage on the Further Reform of Regulatory Regime of Accounting Profession, which brings together relevant information to help members understand the proposals and the potential consequences for the Institute and its members. The government gazetted the Financial Reporting Council (Amendment) Bill 2021 on 16 July. On 23 July, the Legislative Council’s House Committee decided to form a Bills Committee to study the bill. The webpage will help members and Qualification Programme (QP) students keep track of the developments. It can be found in the “Governance” section of the Institute’s website. A survey has also been developed to gauge the views of members and QP students about the reform proposals so that the Institute can effectively represent them when commenting on the draft legislation and discussing transitional arrangements. Members and students are encouraged to complete the survey by 4 August. Capstone webpage launched The Capstone, which is the final level of the Institute’s Qualification Programme, will be held for the first time in the coming December examination session. Ahead of the enrolment deadline, a dedicated webpage has been launched featuring information on the Capstone including its focuses, the objectives of the Capstone workshops and what students will gain after completing this level. Council meeting minutes The abridged minutes from the June special Council meeting are now available for members to read. They can be found in the “Members’ area” of the Institute’s website. Institute news Business news Institute launches webpage and survey on the further reform of the regulatory regime of the profession 4 July 2021 Settlement Hong Kong Institute of CPAs settles regulatory proceedings involving two CPAs The Hong Kong Institute of CPAs has settled regulatory proceedings concerning alleged non-compliance with its professional standards involving two CPAs, namely Jimmy Siu who is a practising CPA, and Yip Kai Yin. The complaint concerns audit deficiencies identified in a practice review conducted on Elite Partners CPA Limited. The Practice Review Committee of the Institute raised a complaint pertaining to the audit of the consolidated financial statements of a Hong Kong-listed entity and its subsidiaries for the year ended 30 June 2017, on which Elite issued an unmodified opinion. The entity was principally engaged in manufacturing and sales of chemical products, although some of the production lines had been intermittently suspended since 2012. Siu was the engagement director and Yip was the engagement quality control reviewer of the audit. Although there is no evidence to suggest that the deficiencies below resulted in the wrong audit opinion, the committee found that: 1. The entity’s financial statements included material amounts of construction-in-progress, and plant and machinery. In assessing impairment of these assets, Siu failed to obtain sufficient appropriate audit evidence on certain judgemental areas, including assessment of the underlying assumptions and data used by the independent valuer engaged by the entity. 2. Siu also failed to perform adequate audit procedures in relation to other material items in the financial statements including bonds payable, government grants repayable, contingent liabilities in relation to a litigation, exchange reserve, and deferred income taxes. 3. The auditor’s report disclosed a material uncertainty related to going concern, and the entity’s financial statements contained disclosures pertaining to this matter. However, Siu failed to obtain sufficient appropriate audit evidence to support his conclusion on the appropriateness of the entity’s use of the going concern

APLUS basis of accounting in the preparation of the financial statements. 4. In response to the practice review findings, Elite submitted certain documentation to the Institute which had not been included as part of the audit file. Elite also claimed that certain audit procedures had been performed. However, they were not documented in the audit working papers. 5. Financial statements disclosure of the principal amount of corporate bonds issued after the year end could not be reconciled to the audit working papers, demonstrating Siu’s lack of sufficient due care and diligence. Yip failed to perform an effective engagement quality control review in that he did not identify any of the irregularities in 1 and 3 above. He also did not perform an effective, objective evaluation of the significant judgements and conclusions made by the audit team. As a result of the above: (a) Siu failed or neglected to observe, maintain or otherwise apply the following professional standards: • Hong Kong Standard on Auditing (HKSA) 230 Audit Documentation. • HKSA 500 Audit Evidence. • HKSA 570 (Revised) Going Concern and • The fundamental principle of professional competence and due care in sections 100.5(c), 130.1 and 130.4 of the Code of Ethics for Professional Accountants (code of ethics). (b) Yip failed or neglected to observe, maintain or otherwise apply HKSA 220 Quality Control for an Audit of Financial Statements, and the fundamental principle of professional competence and due care in sections 100.5(c) and 130.1 of the code of ethics. Settlement agreement: The Council of the Institute has agreed with Siu and Yip that: 1. Siu and Yip acknowledge the facts of the case and areas of non-compliance with professional standards; 2. The Institute will cease regulatory proceedings against Siu and Yip; 3. Siu and Yip be reprimanded; and 4. Siu and Yip jointly pay a financial penalty to the Institute of HK$300,000 and make a contribution to the costs of the Institute in the amount of HK$200,000. The Council considers that dealing with the matter by way of this settlement will achieve an appropriate resolution without incurring additional expenses and tying up resources in disciplinary proceedings. Therefore, it has agreed to withdraw the complaint. Disciplinary findings Kwok Chi Sun, Vincent CPA (practising) Complaint: Failure or neglect to observe, maintain or otherwise apply the fundamental principle of integrity in sections 100.5(a), 110.1 and 110.2 of the code of ethics, the fundamental principle of professional competence and due care in sections 100.5(c) and 130.1 of the code of ethics and Hong Kong Standard on Quality Control 1 Quality Control for Firms that PerformAudits and Reviews of Financial Statements, and Other Assurance and Related Services Engagements, and being guilty of professional misconduct. Kwok was the sole proprietor of Vincent Kwok & Company (practice) and was responsible for the practice’s quality control system and the quality of its audit engagements. A practice review was conducted on the practice in December 2018, which revealed significant deficiencies both in the quality control system and in a number of audit engagements. Furthermore, the practice reviewer found that Kwok had created certain audit documents for the practice review. Those audit documents were created after the audits had been completed and the relevant file assembly periods had passed. Decisions and reasons: The Disciplinary Committee reprimanded Kwok and ordered cancellation of his practising certificate, with no issuance of a practising certificate to him for six months, with effect from 24 June 2021. In addition, Kwok was ordered to pay a penalty of HK$100,000 and costs of the disciplinary proceedings of HK$69,464. When making its decision, the committee took into consideration the particulars of the breaches committed in this case, Kwok’s conduct throughout the proceedings and his pleas of mitigation. Han Heli CPA Complaint: Failure or neglect to observe, maintain or otherwise apply the fundamental principle of integrity under sections 110.1 A1(a), R110.2, and R111.2 under Chapter A of the code of ethics. Han provided copies of two medical certificates purportedly issued by a hospital in support of her sick leave applications to her employer. The employer subsequently discovered that the medical certificates were not issued by the hospital and Han had not attended the hospital or any of its polyclinics. The employer referred the matter to the Institute. Han was not very cooperative with the Institute during its investigation. Decisions and reasons: The Disciplinary Committee ordered the name of Han Heli be removed from the register of CPAs for five years with effect from 9 July 2021. In addition, Han was ordered to pay costs of the disciplinary proceedings of HK$44,590. When making its decision, the committee noted that this is a very serious case involving dishonesty and breach of trust. The committee also considered the mitigating factor that Han admitted the complaint at the beginning of the disciplinary proceedings, which saved the parties from incurring further costs. Details of the settlement and disciplinary findings are available at the Institute’s website. July 2021 5

NEWS Business Accountants are confident the global economy will recover and reach pre-pandemic levels during the second half of the year, according to Global Economic Conditions Survey Report: Q2, 2021, a quarterly survey by the Association of Chartered Certified Accountants and the Institute of Management Accountants. The study was released on 13 July and polled over 1,000 senior accountants and finance professionals. Despite seeing a slight dip in confidence in the second quarter, the survey found that continued vaccinations worldwide will be key to growth during the remainder of the year. Factors such as inflation, the persistence of the coronavirus and the spreading Delta variant, however, have dampened confidence this quarter, compared to the first quarter. KPMG SCRUTINIZED BY U.K. WATCHDOG FOR SUBSTANDARD BANK AUDITS HKEX TO LAUNCH NEWDIGITAL PLATFORM TO SPEED UP IPO PROCESS FORMER HKEX CHIEF JOINS BOND-TRADING PLATFORM BASED IN THE U.S. Hong Kong’s unemployment rate dropped to 5.5 percent for the three-month period ending in June, reaching a level not seen in more than a year as the economy recovers amid relaxed socialdistancing rules and lowCOVID-19 case numbers. The figure, revealed by the Census and Statistics Department on 20 July, is down from 5.9 percent seen during theMarch toMay period and the record 7.2 percent high seen between December 2020 and February this year, the worst figure since 2004. The underemployment rate also decreased from 2.8 percent to 2.5 percent. The economy will continue to recover, bolstered by the HK$5,000 consumption voucher scheme, according to Secretary for Labour andWelfare LawChi-kwong. HONG KONG UNEMPLOYMENT RATE FALLS TO The Hong Kong Stock Exchange (HKEX) will launch a new digital platform next year to speed up the initial public offering (IPO) process and to ensure the bourse remains a global leader for new listings. The Fast Interface for New Issuance (FINI) will supersede current paper subscriptions and slash the IPO process to two business days, down from five. The move was announced on 6 July and follows a consultation process that took place last November, with 90 percent of respondents supporting FINI, which will be introduced in the fourth quarter of 2022. The new platform will “shorten the cycle between IPO pricing and the start of trading, driving market efficiency and reinforcing Hong Kong’s position as the world’s premier IPOmarket,” according to HKEXChief Executive Officer Nicolas Aguzin. The Financial Reporting Council (FRC) in the United Kingdom has criticized KPMG for failing to meet required standards in its audits of banks. KPMG was singled out among the other Big Four firms and mid-sized competitors such as BDO and Mazars, with only 59 percent of the firm’s audits meeting requirements, according to the FRC’s annual review of audit quality. The regulator found “significant weaknesses” in the firm’s audit procedures for companies’ expected credit losses, valuation of financial instruments and the testing of settlement and clearing accounts. “While these results show some improvement on last year’s results, this improvement is marginal and significant change still needs to happen to meaningfully improve audit quality,” said Sir Jon Thompson, Chief Executive Officer of the FRC. ACCOUNTANTS ANTICIPATE GROWTH DURING SECOND HALF OF THE YEAR Charles Li, the former chief executive officer of HKEX has joined MarketAxess, a bond-trading platform listed in the United States, as a non-executive director. Li told the South ChinaMorning Post that he started his new role on 13 July and will join board meetings to give advice to the Nasdaq-listed fixed-asset trading platform. The new role, which is his first since stepping down fromHKEX last December, comes as Mainland China is expected to announce the launch of the southbound leg of the Bond Connect scheme, which will allow those inMainland China to invest in international bonds via Hong Kong. “Ever since my involvement with the launch of Bond Connect, I have closely followed the development of the leading global fixed-income trading platforms, such as MarketAxess, and believe that they will play important roles in the internationalization of the Asian bond markets,” Li told the SCMP. 5.5% 6 July 2021

Li Auto, the Chinese electric-vehicle (EV) maker, received approval from the HKEX for a listing in the city, following its debut in New York a year ago. The Beijingbased start-up will join XPeng, the first Chinese EV company to list in Hong Kong via a dual primary listing following its US$1.8 billion fundraising this month. Li Auto, which raised US$1.1 billion from its Nasdaq initial public offering last July, could raise US$1 billion to US$2 billion in the listing, according to Bloomberg News, which cited people with knowledge of the matter. Li Auto has been public for less than two years, meaning it can’t pursue a secondary listing like other Chinese companies that have completed so-called homecoming share sales. As of June, Li Auto had delivered over 63,000 Li One SUVs, its first and only production model. The cross-boundaryWealthManagement Connect scheme will generate US$700 million in fee-based income a year for banks in Hong Kong andMainland China, according to Bank of China Hong Kong, the South ChinaMorning Post reported. The scheme, announced last year, will allow residents of Hong Kong andMacau to invest in wealth management products distributed byMainland banks in the Greater Bay Area (GBA), and residents of cities in the GBA to invest in wealth management products distributed by banks in Hong Kong andMacau. LI AUTO TO LIST IN HONG KONG APPLE, ALPHABET AND MICROSOFT SEE PROFITS SURGE The Financial Conduct Authority in the United Kingdom has put in place proposals to ensure women hold at least 40 percent of board seats, amid growing interest among investors in broadening representation on listed company boards. The watchdog said that at least one senior board position, including chief executive or chief financial officer, should be held by a woman. Under the new plans, companies will need to either “comply or explain” why they have missed new board diversity targets. While the targets are not mandatory, they will provide a way to measure companies’ success in bringing greater diversity to their senior management, the Financial Times reported. U.K. FINANCIAL WATCHDOG PUSHES TO INCREASE FEMALE DIRECTORS APLUS The European Commission (EU) this month outlined plans to impose a Carbon Border Adjustment Mechanism, or CO2 tariff, on polluting goods, forcing some companies importing into the European Union to pay carbon costs at the border on carbon-intensive products such as steel, aluminium, cement, fertilizers and electricity. The border levy will be phased in from 2026, the EU said. Under the proposal, importers will be required to monitor and report their emissions during a transitional phase from 2023-25. They will also need to buy digital certificates representing the tonnage of carbon dioxide emissions embedded in the goods they import. “If importers can prove, based on verified information from third country producers, that a carbon price has already been paid during the production of the imported goods, the corresponding amount can be deducted from their final bill,” the EU said in a factsheet. The three U.S.-based tech giants – Apple, Alphabet and Microsoft – raked in combined after-tax profits of US$56.8 billion during the latest quarter, almost double the year before and 30 percent more than some Wall Street observers had predicted. The earnings, announced on 27 July, signals the continued demand for digital services and gadgets. It also showed that the digital boom sparked by lockdowns during the pandemic would continue long after the crisis had passed, according to tech executives and investors, the Financial Times reported. “I think the takeaway is, all the digital habits that we picked up over the past 12 months, they’re going to stick with us when we come out of this,” Jim Tierney, a portfolio manager at AllianceBernstein, told the FT. IN FEES FOR LENDERS US$700 MILLION EU PROPOSES WORLD’S FIRST CARBON BORDER TAX WEALTH MANAGEMENT CONNECT TO GENERATE July 2021 7

SPECIALISM Specialist training course directors THE EXPERTS Photography by Calvin Sit The Institute offers a range of specialist training programmes to help members hone their skills, accelerate their careers or move into new areas of practice. In the first part of this special series, Nicky Burridge talks to the course directors of these programmes about how they help CPAs excel in specialized fields and promote best practices THE COURSE DIRECTORS: (From left) MAT NG FCPA Professional Diploma in Insolvency GLORIA YUNG FCPA Financial Controllership Programme STEPHEN LEE FCPA Specialist Programmes in Taxation GUY NORMAN CPA Professional Enhancement Programme in Forensic Accounting WILEY PUN CPA Business Valuation Programme 8 July 2021

APLUS July 2021 9

SPECIALISM Specialist training course directors In an increasingly complex business world, there is a growing trend for accountants to become more specialized, points out Guy Norman CPA, Partner, Deloitte Advisory, and Convenor of the Hong Kong Institute of CPAs’ Forensics Interest Group Management Committee. “To have these specialisms properly supported by education programmes, not only enables accountants who specialize to do so with credibility and qualifications, but it keeps standards high for the profession and the wider business community,” he says. This is, in part, why the Institute established its five specialist training programmes. “The Institute’s specialist training programmes provide an opportunity for members to acquire in-depth training and knowledge in specific areas, such as liquidation, taxation and financial controllership, at a more advanced level than what is required to pass its Qualification Programme (QP),” says Stephen Lee FCPA, Course Director of the Specialist Programmes in Taxation. In some cases, such as for insolvency and business valuations, where there is no statutory licensing regime, completing one of the programmes acts as a benchmark for professional competency. Wiley Pun CPA, Director, Savills Valuation and Professional Services Limited, says the Institute is considered by many people to be the gold standard in specialist training programme providers, and completing one of its courses can be seen as an entry ticket when pitching for a project in the absence of other licensing requirements. He points out that the specialist training programmes should not only be taken by CPAs who work in the particular field they cover, but also those in general practice. “Today’s CPAs need a big toolbox given the diversity of matters they may need to deal with. Completing a specialist training programme can be a handy tool for a generalist member when the situation demands it.” Mat Ng FCPA, Managing Director, Grant Thornton Recovery and Reorganization Limited, and Course Director of the Institute’s Professional Diploma in Insolvency, adds that members should also continue to invest in themselves and consider taking one of the programmes to keep their knowledge up to date in line with recent developments. Financial controllership The Institute’s Financial Controllership Programme (FCP) provides participants with insights into the work of a financial controller and how to add value to a business. It covers the core technical knowledge and skills accountants need to work as a chief financial officer, finance director or regional or global treasurer. Gloria Yung FCPA, Course Director of the FCP, explains: “It is the ideal programme for accounting professionals who want to evolve their career fromworking at a firm in taxation or audit, to a commercial 10 July 2021

APLUS “ We select very highquality speakers, industry leaders who are either insolvency practitioners or lawyers, to share their experience with students.” environment. It is also aimed at existing financial controllers who want to refresh their skills or take their career to the next level.” The programme has five core modules, three of which cover accounting for performance and decision making, strategic finance, and risk management and corporate governance. Another module looks at management competency development, covering the soft skills needed by someone in a financial controller position, such as leadership and communication skills, while the fifth module focuses on business ethics, highlighting the important role a financial controller plays in setting the culture and code of ethics in a company. Yung explains that the programme is structured to offer comprehensive coverage of all of the main areas in which a financial controller needs to be competent, while it is also flexible, enabling people who are unable to complete the whole course in one year to instead do it as individual modules. She points out that the instructors all come from industry backgrounds, enabling them to pass on their personal professional experience to people taking the programme. “The market is changing very quickly, but the instructors are able to give candidates up-to-date, first-hand market intelligence,” she says. “The programme is very interactive, involving a lot of discussions with other students and the instructors themselves. It gives students a real insight into what the day-to-day work of a financial controller is like, and enables them to build up a good network.” The Institute launched the programme in response to market demand and to create an avenue for CPAs who want to move their careers away fromworking at a professional firm and instead become a financial controller or equivalent professional. The programme fills an important gap in the market, says Yung. “There is no other programme in Hong Kong that is so comprehensive and practical that brings CPAs up to the level of a CFO,” she says. Insolvency As Hong Kong has no formal licensing scheme for insolvency practitioners, the Institute launched its insolvency programmes to ensure high standards among its professionals working in this area. It offers three separate insolvency training courses, namely Insolvency Preparatory I and Insolvency Preparatory II, which lead up to the Professional Diploma in Insolvency – the Institute’s Specialist Qualification for insolvency practitioners. While the Professional Diploma in Insolvency was launched some time ago, a number of structural changes have recently been made to it to reflect the changing professional environment. Course Director Ng says: “It covers all aspects of the work undertaken by an insolvency practitioner, including liquidation, personal insolvency, corporate rescue and restructuring, and crossborder insolvencies, as well as the relevant legal concepts and ethics.” He adds that the first lecture of the diploma is on ethics due to the strong emphasis the programme places on high ethical standards for insolvency practitioners. The diploma, which consists of 56 contact hours, is taught using real-life examples and case studies. “We select very high-quality speakers, industry leaders who are either insolvency practitioners or lawyers, to share their experience with students,” he says. “We try to ensure that in each session there is one accountant and one lawyer, or someone from the Official Receiver’s Office or a bank to share their expertise.” He adds that students are not only able to learn from the experience of these lecturers, but the programme also creates a good networking opportunity for them. Ng believes taking the programme can help CPAs advance their career through obtaining a specialist qualification that is recognized by the market. “By completing this difficult course, you show an employer that you have a high level of problemsolving skills, and it demonstrates that you are up-to-date with recent developments in the legal environment and in insolvency practice. More importantly it shows your commitment to the industry.” He adds that completing the diploma counts as contributing 50 hours of insolvency work under the experience requirement for the Official Receiver’s Office’s Panel A Scheme. “Doing the insolvency diploma can help accountants advance their career or improve their business in a very practical way by helping them get on to the Official Receiver’s panel,” Ng says. Unsurprisingly, there is high demand for the programme, particularly as the volume of insolvency work is increasing, due to the economic downturn triggered by the COVID-19 pandemic. The diploma course is aimed at accountants and lawyers who want to move into insolvency, as well as those who want to refresh their knowledge, or advance in their career. In the past, it has also been taken by people working in government departments and professionals from financial institutions and banks, particularly those who deal with loan defaults. The diploma course is open to both members and non-members who have at least 24 months’ relevant experience or who have completed the Institute’s Insolvency Preparatory II course. “It is a very high-level, demanding course, so students must have relevant experience. For those thinking of moving into insolvency, the programme will give them a clear picture of what it is like. For those already in this area, it will give them the skills and perspective to consider cases in a much broader way,” Ng says. July 2021 11

SPECIALISM Specialist training course directors Taxation The Institute’s Specialist Programmes in Taxation are aimed at members who want to increase their tax knowledge and practical experience in a field as rapidlychanging as tax. Course Director Lee explains that in the past, qualified accountants who were interested in pursuing a career as a tax advisor relied on selflearning, continuing professional development (CPD) events, seminars and conferences to acquire the relevant knowledge. The Institute launched its two tax diplomas in 2012 in order to offer a more systematic way of acquiring the in-depth knowledge taxation advisors required. Lee says: “Over time, taxation has developed into many different specialty areas, like transfer pricing, transaction services, advocacy, and investigation etc. There is also demand for international taxation experts. Accountants with advanced taxation knowledge are the ideal choice for clients needing such services.” Lee points out that proficient tax advisors in Hong Kong not only need to be knowledgeable about Hong Kong taxation, but they also need to understand international and China taxation, due to Hong Kong’s role as a gateway for international companies moving into Mainland China, and Chinese companies going out into the rest of the world. As a result, the Specialist Programmes in Taxation are built around three core tax modules, namely its Advanced Hong Kong Tax Course, China Tax Course and International Tax Course, as well as a workshop on ethics. Students can choose between the Professional Diploma in Hong Kong Tax and the Professional Diploma in China Tax, both of which include modules on international tax and ethics. Members who do not want to complete a whole diploma can attend any one of the three tax modules as part of their CPD. The modules are delivered through workshops, followed by tutorials run by facilitators from professional, commercial or academic backgrounds to enable the sharing of practical experience. Lee says the workshops make the Institute’s programmes stand out from other purely academic courses and online programmes. “Students are able to gain a full picture of different topics during the workshops and then apply what they learned in the tutorial sessions. Discussions with classmates and the facilitators during the tutorial sessions enable them to understand the topic from different angles,” he says. The programme is only open to Institute members. Students wanting to take the Advanced Hong Kong Tax Course are also required to have completed module D taxation of the Institute’s QP. Lee adds that practical experience is also highly desirable, and preference may be given to applicants who have experience or who are members of the Institute’s Taxation Faculty. The programme has had consistently high feedback from students, receiving an average rating of 4.5 out of 5 since it was first launched. “Members of the Institute who wish to extend and advance their tax knowledge and practical experience to become competent tax advisors in an increasingly complex business environment should consider taking the Specialist Programmes in Taxation,” Lee says. Business valuation Business valuation is of paramount importance in today’s financial reporting landscape, and accountants in both business and practice need to acquire knowledge in this area to know how to understand, review and interpret business valuation reports, according to Pun, Course Director of the new Business Valuation Programme. He says that changes, such as the introduction of International Financial Reporting Standard (IFRS) 13 Fair Value Measurement, and IFRS 9 Financial Instruments, has led to an increased need for valuers on both the preparer and reviewer side. At the same time, there is also a growing demand for valuers to act as advisors on how to increase a company’s value. But Pun points out that there is no qualification requirement for a practising business valuer in Hong Kong in connection with financial reporting engagements or public filing purposes. As a result, the Institute launched its new Business Valuation Programme, in collaboration with Savills Valuation and Professional Services (S) Pte Limited, earlier this year to fill a gap in the market. The programme is divided into four parts. The first two parts cover the fundamentals of valuation and the three primary valuation approaches, namely the market, income and cost approaches. The third part covers major financial reporting valuation areas, such as purchase price allocation, intangible asset valuation and asset impairment. There are also a number of electives covering the valuation of financial instruments, biological assets, properties, and plant and equipment. The final part of the programme covers the application of what students have learned through looking at three case studies. Pun says the programme incorporates International Valuation Standards (IVS), the most frequently cited standards for business valuations after IFRS, which are not taught to students during the Institute’s QP. The programme is not only aimed at CPAs who want to work as business valuers, but also users of business valuation reports, including audit professionals, directors of boards, preparers of financial statements, and fund managers. “This programme can give participants the tools to assess valuations more systematically,” Pun says. The programme has proved to be highly popular. When it ran for the first time in April to June this “ There is also demand for international taxation experts. Accountants with advanced taxation knowledge are the ideal choice for clients needing such services.” 12 July 2021

APLUS year, it received more than 100 enrolments. Around 70 percent of respondents who completed the post-course survey rated it as being excellent or good. Forensic accounting The Institute’s Forensics Interest Group launched the Professional Enhancement Programme in Forensic Accounting earlier this year in response to increasing demand for forensic accounting and fraud investigation-related work. It is the first time the Institute has offered a formal programme in forensics. Norman explains: “We were keen to have a programme that would enhance learning, standards and quality in forensic accounting in Hong Kong. This city is a leading financial centre, and the Institute is a leading accounting association, so the long-term goal is to have our own forensic accounting qualification programme. This introductory course is the beginning of that.” The course is run as eight training sessions, around two hours each. It covers investigations, interviewing witnesses, securing evidence, the technology used in forensic accounting, giving expert witness testimony, and the basic structure of international legal systems where forensic accountants are needed for proceedings. “The course offers an introduction to forensic accounting, not just in terms of accounts and numbers, but we also have two leading lawyers who give us a good understanding of the basic structure of international and Hong Kong legal systems, and where forensic accountants fit in,” Norman explains. The course is designed to appeal to a broad spectrum of people, ranging from first and second year trainees who want a good foundation in forensic accounting, to those who have five or six years’ experience in the area and want to refresh their skills. It is open to all Institute members and members of the Forensics Interest Group. Norman says: “It sometimes isn’t that easy to get into forensic accounting. I think this course will be a great enabler for people who want to get involved to do so with credibility, or to change gear in their career, whether within an accounting practice or for members in business who want to focus on something interesting.” He adds that there is high demand in the market for people with forensic accounting skills. Take up of the programme has been strong, with more than 120 people signing up for the first course that ran in March and April, leading to a second course being offered this September. “We definitely see it filling a gap in the Hong Kong market and there is an obvious need for it. It is a very good way for practitioners to start off developing a specialism,” he says. To anyone thinking of taking one of the Institute’s specialist training programmes, Pun says they act like a “coat of arms” for practice, signalling a level of ability, seriousness and sincerity in committing to the field. Lee agrees, saying: “These programmes are a reliable and objective yardstick for measuring members’ expertise in these specialty areas.” “ We were keen to have a programme that would enhance learning, standards and quality in forensic accounting in Hong Kong.” July 2021 13

SPECIALISM Specialist training course students THE FUTURE THE TAX SPECIALIST Karen Poon FCPA (practising) THE FINANCIAL CONTROLLER Kenneth Ho CPA THE BUSINESS VALUER Iky Tang CPA (practising) 14 July 2021

APLUS SPECIALISTS Photography by Calvin Sit In the second part of the special series, students of the Institute’s specialist training programmes tell Jeremy Chan how they have benefitted as professionals and individuals since completing them If Kenneth Ho CPA had to describe the Hong Kong Institute of CPAs’ Financial Controllership Programme (FCP) in one word, it would be “practical.” Ho, who completed the programme at the beginning of 2020, values the specialist knowledge he has gained since. He joined the FCP to not only sharpen his existing skills in finance, but to equip himself with the required financial and business acumen to one day take the helm of a company’s finance function. “I aspire to become a chief financial officer one day,” says Ho, Finance Director at Oracle Systems Hong Kong Ltd. “But there’s a lot you need to know before becoming one.” Ho is one of thousands of students who have participated and graduated from the Institute’s specialist training programmes, with the goal of expanding their skill set and broadening their career opportunities. Currently, the Institute offers specialist training programmes in financial controllership, insolvency, taxation, business valuation and forensic accounting. The programmes are taught by experienced course directors and facilitators (read more on page 8) and made up of modules that cover key aspects of the specialism in detail. Students complete the programme either through attending all modules or passing a final assessment, after which they will attain a professional diploma in their chosen specialism. THE INSOLVENCY SPECIALIST Dick Tang CPA THE FORENSIC ACCOUNTANT Summer Li CPA July 2021 15

SPECIALISM Specialist training course students “ One key lesson I learned from the course was that as a finance person, everything you do has to support the overall strategy of a company.” Ho says the FCP’s five modules – management competency development, accounting for performance and decision making, strategic finance, risk management and corporate governance, and business ethics – provide professionals like himself with not only technical knowledge, but the necessary foresight and communication skills to be an effective finance leader. One factor that sets the FCP apart is its use of case studies, Ho explains, which help students understand how to apply their knowledge in a real-world scenario. “I remember the lecturer for the accounting for performance and decision making module was fantastic,” says Ho. “He wasn’t only a CFO, he also worked as a general manager, so the way he approached and discussed problems was very interesting. He shared his experience from both a finance and business owner perspective. He paced the classes well and always gave high-quality answers.” CFOs require knowledge in aspects beyond finance, and Ho says the FCP modules are designed with that in mind. “Within finance is a large spectrum of skills; you need skills in financial reporting, management reporting, treasury, internal control, investment appraisals, fundraising, listing – all kinds of different things. But to be a CFO, you need to know more than just finance,” he says. So Ho was thrilled to be given the opportunity to learn from skilled professionals in the field. “In the strategic finance module, a lot of technical knowledge is covered such as bonds, listing, bank loans and how to deal with banks. They also invite speakers from different industries to talk to us about topics such as automation, treasury management and blockchain. The business ethics module covers a lot of other topics in addition to anti-money laundering, such as ethical standards as expected from a finance professional, and laws and regulations in different countries surrounding corruption.” Because classes are often jampacked with content, Ho urges other students to prepare well before each one. “You can’t show up to these classes on a Saturday morning and expect to relax,” he laughs. “You really have to read the class materials before the lesson. Given how tight the schedules are, you won’t be given extra time in class to read case materials, which are expected to be studied beforehand. Coming unprepared would limit your ability to participate and contribute, which is key for your learning in this course,” he says. “You have to give it 100 percent. Participate at the fullest and don’t be afraid to speak up and share your views, especially during case studies and workshops.” Ho says the FCP has indeed made him a much more wellrounded finance professional. “The programme gave me a lot of confidence and really refined everything that I’ve learned from my previous work experiences. It connected all the dots,” he says. “One key lesson I learned from the course was that as a finance person, everything you do has to support the overall strategy of a company. In my role now, I’m more involved with the strategic side of things, which involves strategic planning, and the course has been very helpful in that regard.” Forensic accounting As a young auditor relatively new to the world of forensic accounting, Summer Li CPA knew that participating in the Institute’s Professional Enhancement Programme in Forensic Accounting would give her a head start. “I applied for the programme because I’d never really received systematic training in forensic accounting – not in university nor in my career so far,” explains Li, a Manager at Alvarez &Marsal (Disputes and Investigations). Li began her career as an auditor at Deloitte where she worked for four years before wanting to explore a different field. The programme, first offered this year, was held via webinars over five weeks, and covered topics including local and international legal systems, expert witness work, interview and investigation skills and forensic engagement reporting. The webinar on expert witness work was particularly useful, Li says, as it helped to address a specific area she had previously struggled with. “When I first started out at my company, I was assigned to expert witness projects, which was something I knew little about at the time,” she explains. “But after attending, I gained a much better understanding on what expert witness work really is, the types of expert witnesses, the differences in their roles, and how to prepare expert witness claims.” The course’s speakers, Li adds, were dedicated and conveyed their message or explained concepts through storytelling. “For example, during the expert witness course, one speaker used an interesting story to explain the differences between factual witnesses and expert witnesses,” she says. Since completing the programme, Li has found herself more confident in her everyday role as a forensic accountant. “The course actually taught me how to write an expert witness report, which is something I often have to do as part of my job,” she adds. “The programme itself is really comprehensive and provides students with a good overview of what forensic accounting really is. It also covers international and Hong Kong legal systems and how forensic accountants fit into the picture.” She advises future students to allocate time for the webinars and to inform their managers about them ahead of time. “There were eight sessions, around two hours each, and they were all held in the afternoon during work hours. Let your boss know in advance that you’ll be doing this course so you don’t miss a webinar,” she says. “Prepare some questions in advance 16 July 2021

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