Moore CPA Limited and Da Hua Moore International CPA Limited (“Moore Hong Kong Audit & Assurance Practice”) Announces Renaming and Strategies to Strengthen Mainland-Hong Kong Collaboration

Moore Hong Kong Audit & Assurance Practice is pleased to announce significant developments in our operations, aimed at strengthening our presence and enhancing collaboration between Hong Kong and mainland China. These initiatives reflect our commitment in delivering exceptional services to clients in an evolving business landscape.
 

HKEX Disclosure on Business Valuation in Transactions

In June 2023, the Hong Kong Stock Exchange (“HKEX”) released its 8th Listed Issuer Regulation Newsletter, covering reminders on audits, financial reporting, new share scheme rules, and business valuation disclosures. Relevant rules and instructions from the HKEX regarding Business Valuation in Transactions were cautioned.
 

Can ChatGPT Replace Human Valuers?

In this article, we'll explore the capabilities of ChatGPT, compare it with the roles and responsibilities of human valuers, and discuss AI's potential advantages and limitations in the valuation process. Additionally, we will delve deeper into the hybrid approach that combines the strengths of human valuers and AI-driven tools like ChatGPT.
 

Common Valuation Pitfalls – Part I 

The valuation of businesses and assets is integral in financial reporting, IPOs and transactions. Over the years, the HKEX, the SFC and the HKICPA published their views and findings on the common issues identified in the valuation profession and the valuations prepared for financial reporting and transaction purposes.

In this article, we briefly summarise the authorities’ concerns and five common valuation pitfalls for which valuation practitioners and users should remain vigilant. 

Promotion of Audit & Assurance Department

Moore Hong Kong is excited to announce the Audit & Assurance Department promotion with effect from 1 October 2022. Clement Tse, James Kong, Regina Mo, Brian Leung, Fiona Wu and Angel Yau will be starting their new role as Assurance Director. Alice Chan is also promoted to Assurance Principal.

Hong Kong Government Proposes Changes on the Foreign Source Income Exemption Regime for Passive Income

In October 2021, the EU included Hong Kong on the watchlist of non-cooperative jurisdictions for tax purposes.  The EU is of the view that the FSIE regime in Hong Kong may result in double non-taxation for offshore passive income as it does not require any conditions on the recipient entities or requirement of substantial economic presence in Hong Kong. If Hong Kong does not address the concern of the EU timely, it will be blacklisted by the EU for tax purposes.  Hong Kong-based entities may face defensive measures by the EU member states in the tax area.

Will the introduction of the Global Minimum Tax and the inclusion of Hong Kong in the “watch list” of European Union’s non-cooperative tax jurisdictions affect you?

With rapid changes in the international tax landscape in recent years, Hong Kong has been proactively making changes to embrace the new rules.  The Hong Kong Government has announced that it would actively implement the tax practice according to international consensus while maintaining Hong Kong’s competitive edge in the business environment.

MPF Employer Award 2020-2021

IMG_0254-(1).JPEGMoore Stephens CPA Limited, Moore Advisory Services Limited and Moore Associates Limited, collectively known as Moore Hong Kong, have received the Good MPF Employer Award  by Mandatory Provident Fund Schemes Authority (MPFA), commending our dedication to enhancing employee’s retirement benefits.
 

Moore Global announces five new global leaders

Moore Global, one of the world’s leading accountancy and advisory networks, has announced five of its sector leaders have been appointed Global Leaders. 
 
These newly created roles support our continued growth strategy and emphasise our plans to strengthen our global leadership position in key sectors around the world.

Valuation Review for Financial Reporting

As an independent valuation review has been taking  a more influential role  in audit processes and fair value estimation of company asset and liabilities reporting, the corresponding industry standards is gaining more detailed attention from all valuers and other industry practitioners. A professional practitioner should always consider to obtain additional necessary assurance from experts in relevant professional field.

Importance of SOC Reporting in the Post Pandemic Era

Prior to the pandemic that affects the world since earlier last year, many sectors were already redesigning their operating models to enhance efficiency and effectiveness in the digital era. These efforts are now even more relevant than ever as companies require leaner, more adaptive digital enterprises that can change and respond quickly. We see that transitioning certain functions to cost effective shared service centre or outside the enterprise entirely via managed service or outsourcing relationships with third parties are high on the list of many enterprises planned actions in the Post Pandemic Era.
  
Many organisations are able to function more efficiently and effectively by outsourcing tasks or entire functions to another service organisation. These outsourcing relationships may increase revenues, expand market opportunities, and reduce costs for the user entities and business partners, they also result in additional risks arising from interactions with a service organisation and its systems. In supporting their risk assessments on service organisations, user entities and business partners may request independent reports on an examination or review of controls from the service organisation. This is where assurance standards for reporting on service organisation controls such as SOC Reporting and ISAE 3402 were developed.
 

COVID-19 – Valuation and Market Update (30 June)

The first half of 2020 has been full of unexpected events.  COVID-19 has already infected more than 13 million people worldwide, and social distance measures have brought global economic activities to a halt. Other events, such as the oil price crash and the new wave of secondary listing in Hong Kong, further made the market to be extremely volatile.

Given the fluid nature of the pandemic, different stakeholders and practitioners in the business world are facing unprecedented challenges. Various regulators and industry organisations, including SFC, HKEX and IFRS Foundation hence published an amount of new guidance and technical notes, aiming to expand the regulatory focus amid economic uncertainties and market volatilities.

Cybersecurity preparedness in time of COVID-19

The unprecedented COVID-19 crisis has posed a huge change in many aspects, for instance, remote working has become a trend to reduce the spread of virus. This has provided insights for company’s management and board on cybersecurity preparedness. Regardless of company size, IT expenditure is unavoidable in order to maintain operations during the crisis. The related cybersecurity investment due to regulatory and compliance measures have since increased.  Most companies are caught off guard by the coronavirus. On one hand company’s computing resources are limited to support remote working, at the same time employees in general have not subscribed adequate firewall protection and antivirus packages to work remotely on their personal computers. With remote working becoming the new norm for companies worldwide amid the COVID-19 crisis, cybersecurity is even more crucial than before to support thousands of workers working from home accessing their companies’ networks.

Desktop Valuations - Solution to travel restrictions due to the Coronavirus?

Since late January 2020, the outbreak of the novel coronavirus has grasped the headlines of various media outlets across the globe. Big businesses in the PRC are either temporarily shutting down stores or advising staff to work from home. As a range of PRC companies listed in Hong Kong have been severely affected by the virus, on 30 January 2020, the Securities and Futures Commission (SFC) and the Stock Exchange of Hong Kong Limited (HKEX) released a joint statement to remind all Hong Kong listed companies to inform the Exchange about how their businesses have been affected by the outbreak of coronavirus1. Most PRC based listed companies have financial year ends on 31 December, and January through March is their busy period for the preparation of annual reports. However, current travel restrictions to and from PRC and Hong Kong have posed huge challenges for external auditors and also valuers, who often need to conduct on-site inspections and management interview for their work.
 

Financial Due Diligence and Audit, is it just a title difference?

While financial performance is one of the grave concerns to an investor, which financial performance measure to look at has always been a challenge for investors.  Many would opt to start in tandem with audited financial statements as these are well governed with detailed verification work. However, we should not therefore extrapolate and conclude that audited financial statements are sufficient for making the right investment choice.

 

Moore Hong Kong Special Work arrangement under threat of Novel Coronavirus

We are here to inform you that even though our office will be tentatively closed until 9 February 2020, to align with our Government’s recommendation, our strong and united teams are here to continue to deliver the same exceptional service and quality work to our clients. We will constantly review the situation and adopt the best arrangement to benefit our clients and of course, our staff.  Health and safety of the community remains our top priority.  

Valuation Guidelines for Private Equity and Venture Capital

In response to the increasing demands for building consensus within the valuation industry, various valuation guidelines have been developed to suit different purposes, and to caterdifferent needs. Among them the International Private Equity and Venture Capital Valuation (IPEV) Guidelines and International Valuation Standards (IVS) are two of the most widely adopted standards in the private equity investments and accounting practices respectively.

ANDY ARMANINO TO SUCCEED RICHARD MOORE AS MOORE GLOBAL CHAIRMAN

After 15 years as Chairman of the leading international accountancy and consulting network, Moore Stephens International, now Moore Global, Richard Moore today announced his decision to step down at the end of 2019. 

Andy Armanino will succeed Richard as Chairman of Moore Global from 1 January 2020. Andy is currently a member of Moore Global’s board and until 1 January 2019 was CEO and Managing Partner of Armanino LLP.

Due diligence by external consultants plays a crucial role in merger & acquisitions

On 4 July 2019, the SFC of Hong Kong issued the “Statement on the Conduct and Duties of Directors when Considering Corporate Acquisitions or Disposals”, reiterating the importance of independent professional valuations in relation to the fiduciary duties of the directors of public companies in their planned acquisitions or disposals. The authority particularly points out the importance of due diligence, which is an area that many valuation practitioners in Hong Kong do not possess the relevant expertise nor resources to advise and work on.

Building cyber resilience among insurers

With technology advancement, there are more and more digital insurers. Though digitalisation helps insurers increase efficiency and enhances customers experience, cyber threats must be anticipated.  
 
The cyber insurance market is still far from mature. What should the regulators do? What role can insurance play in addressing cyber risks?

How cyber security breaches impact personal data protection in particular in relation to the European Union General Data Protection Regulation (GDPR) on Hong Kong businesses

The news of cyber security breaches come waves after waves. Cathay Pacific leaks information consist of passengers’ names, nationalities, dates of birth, travel document numbers and historical travel details. The hacking of Marriott’s Starwood reservation system exposes data of up to 500 million guests. Just over a week ago, Hong Kong credit reporting agency TransUnion was forced to suspend its online services over unauthorised access of personal credit information.
 
Hong Kong business has largely ignored the EU General Data Protection Regulation (GDPR) that replaced the preceding data protection laws in all European Union (EU) countries on 25 May 2018. The potential impact of GDPR on Hong Kong business with ineffective cyber security measures could be severe.
 

Two-tiered profits tax rates regime

On 29 March 2018, the Inland Revenue (Amendment) (No.3) Ordinance 2018 was gazetted to implement the two-tiered profits tax rates regime proposed by the Chief Executive. The two-tiered profits tax rates regime applies to both corporations and unincorporated businesses in any year of assessment commencing on or after 1 April 2018.

How IFRS 17 affects Hong Kong insurers

This new IFRS Standard for insurance contracts which are aimed at helping investors and others better understand insurers’ risk exposure, profitability and financial position. IFRS 17 replaces IFRS 4 and will be effective from 1 January 2021.

New global CEO appointed

We’re delighted to announce that Anton Colella has been appointed as Moore Stephens International’s new global Chief Executive Officer following a worldwide search.
 
Anton Colella is currently global Chief Executive of the Institute of Chartered Accountants of Scotland (ICAS).
 

Challenge to CFOs and CUOs: Maximising technology to benefit insurance business

Both CUOs and the CFOs are fully aware of the potential benefits that technology can bring to the business. It’s clearly not rocket science but what might surprise many is that whole technology may well deliver benefits to specific task both believe where technology can really deliver benefit is creating far greater integration across the business and with it the ability to better understand the bigger picture and with it enhance their own abilities to contribute to the bottom line.

New Asian hub will drive distribution efficiency

RuleBook HUB Asia is a Cloud-based solution that allows insurers to load their insurance products, enabling them to be accessed by authorised external parties. It provides a centralised and secure place for carriers to share products and rating with their distribution partners whilst giving coverholders the ability to access multiple carrier products by integrating into just one platform.

Moore Stephens announces global RuleBook partnership alongside Asia launch

Moore Stephens Consulting and NTT DATA UK have concluded an agreement to provide a comprehensive international service set to underwriters and brokers in the London and global insurance markets. NTT DATA is a leading IT services provider and global innovation partner headquartered in Tokyo, with business operations in over 40 countries. This will enable Moore Stephens Consulting to implement, roll out geographically and support clients on a global basis.