Our Ref.: C/FRSCSent electronically through the IASB Website (www.ifrs.org)
10 January 2018Mr Hans HoogervorstInternational Accounting Standards Board30 Cannon StreetLondon EC4M 6XHUnited KingdomDear Hans,IASB Exposure Draft ED/2017/5Accounting Policies and Accounting Estimates andED/2017/6 Definition of MaterialThe Hong Kong Institute of Certified Public Accountants ("HKICPA") is the only bodyauthorised by law to set and promulgate standards relating to financial reporting,auditing and ethics for professional accountants, in Hong Kong. We are grateful for theopportunity to provide you with our comments on these Exposure Drafts.Comments on ED/2017/5The HKICPA generally supports the proposals but considers the way proposedparagraph 32A is currently worded could create confusion. The HKICPA questionswhether selecting an estimation technique or valuation technique constitutes makingan accounting estimate regardless of whether an item is measured with precision. Forexample, the fair value of an equity instrument using quoted price in an active market(level 1 input) is certainly more precise than using level 2 or 3 inputs. But would anitem measured with level 1 inputs not constitute making an accounting estimate? Inview of this, the HKICPA recommends that the IASB clarifies what the Board means by'measured with precision' in the context of whether a measure would constitute makingan accounting estimate.Comments on ED/2017/6The HKICPA supports the proposed refinements in the definition of material as theyare clearer and may help improve the understanding of how to apply materiality.If you have any questions regarding the matters raised in this letter, please contact meor Katherine Leung, Associate Director of the Standard Setting Department(katherineleung@hkicpa.org.hk).Yours sincerely,Christina NgDirector, Standard Setting Department
IASB Exposure Draft ED/2017/5 Accounting Policies and Accounting Estimates and ED/2017/6 Definition of Material
下载原件Our Ref.: C/FRSCSent electronically through the IASB Website (www.ifrs.org)
10 January 2018Mr Hans HoogervorstInternational Accounting Standards Board30 Cannon StreetLondon EC4M 6XHUnited KingdomDear Hans,IASB Exposure Draft ED/2017/5Accounting Policies and Accounting Estimates andED/2017/6 Definition of MaterialThe Hong Kong Institute of Certified Public Accountants ("HKICPA") is the only bodyauthorised by law to set and promulgate standards relating to financial reporting,auditing and ethics for professional accountants, in Hong Kong. We are grateful for theopportunity to provide you with our comments on these Exposure Drafts.Comments on ED/2017/5The HKICPA generally supports the proposals but considers the way proposedparagraph 32A is currently worded could create confusion. The HKICPA questionswhether selecting an estimation technique or valuation technique constitutes makingan accounting estimate regardless of whether an item is measured with precision. Forexample, the fair value of an equity instrument using quoted price in an active market(level 1 input) is certainly more precise than using level 2 or 3 inputs. But would anitem measured with level 1 inputs not constitute making an accounting estimate? Inview of this, the HKICPA recommends that the IASB clarifies what the Board means by'measured with precision' in the context of whether a measure would constitute makingan accounting estimate.Comments on ED/2017/6The HKICPA supports the proposed refinements in the definition of material as theyare clearer and may help improve the understanding of how to apply materiality.If you have any questions regarding the matters raised in this letter, please contact meor Katherine Leung, Associate Director of the Standard Setting Department(katherineleung@hkicpa.org.hk).Yours sincerely,Christina NgDirector, Standard Setting Department