Look out for internal controls allowed rogue trader to operate financial instruments; and post sub-prime crisis investors scrutinise companies books.
HK deductions on eco-friendly facilities
Hong Kong plans to introduce tax deductions in an effort to encourage the business community to use environment-friendly facilities.
The proposal was contained in May's Revenue Bill 2008, which seeks to implement a number of the measures announced in the 2008 - 2009 Budget.
Eligible facilities would be divided into two categories: environmental protection machinery and environmental protection installations. A 100 per cent deduction under profits tax in the year of purchase will be provided for environmental protection machinery for capital expenditure incurred.
For installations, a deduction for 20 per cent of the capital expenditure incurred on their construction will be provided in each of the five consecutive years starting from the year of acquisition. Environmental protection machinery includes low-noise construction machinery or plant, as well as waste treatment, wastewater treatment and air pollution control machinery or plant.
Qualifying installations will mainly be renewable energy installations, including solar photovoltaic installations, wind turbine installations and thermal waste treatment installations, as well as registered energy-efficient buildings.
New service provision standards
Mandatory standards relating to the provision of quality and ethical taxation services to clients by CPA Australia practitioners came into effect from 1 July 2008.
APES 220 Taxation services replaces the former standard, APS 6 Statement of taxation standards, and provides more detailed guidance on the standards required of practitioners.
Practitioners must abide by all the requirements imposed by APES 220 in respect to any taxation service they may potentially provide.
They should consider the standards set out in APES 220 in conjunction with other professional standards, especially APES 110 Code of ethics for professional accountants, as well as other obligations imposed under law such as those set out under the Income Tax Assessment Acts 1936 and 1997.
Reporting made simple
The federal government multi-agency initiative to simplify business-to-government reporting, Standard Business Reporting, has established a business advisory forum to help it stay in touch with the needs of Australian businesses.
The aim is to simplify the regulatory burden on businesses by giving them a faster, more efficient mechanism to report to government agencies.
Audit committee guide
Audit committees: A guide to good practice is a user-friendly reference tool that sets out the responsibilities of audit committees. It also outlines practical strategies for committees to optimise their role of overseeing a company's financial reporting, risk management, internal control, compliance and internal audit activities.
Practical issues are included, such as establishing an appropriate audit committee charter, setting the right membership balance and reporting protocols, and assessing the audit committee's performance. All relevant regulatory developments from 2001 affecting audit committees are incorporated.
In spite of the best efforts of governments and international authorities to curb it, the illicit practice of using bribery to gain business is growing in popularity worldwide, according to a survey by Ernst & Young.
The survey of nearly 1200 finance executives from companies in 33 countries found the nefarious behaviour shows no signs of abatement. Indeed, 23 per cent of respondents said their organisation had been asked to pay a bribe to keep or win business in the past two years. About 18 per cent had lost business to rivals willing to meet bribe demands.
This is despite the fact that when anti-corruption enforcement has actually become stronger around the globe over the past five years, according to nearly 70 per cent of respondents.
'Despite the best efforts of some governments, non-government organisations and law enforcement agencies, the risk of bribery and corruption remains prevalent,' says John Smart, head of fraud investigation and dispute services at Ernst & Young UK.
'Awareness, education and control are the most effective methods for dealing with corrupt financial practices. Promoting ethical behaviour in your organisation, making a difference, is not just about staying on the right side of the law. It's good business.'
