November 2023

The Stock Exchange of Hong Kong Limited (“HKEx”) published a guidance letter (the “Guidance Letter”) in October 2023 to address the fairness and reasonableness of the terms of the transaction disclosed by the issuer. The Guidance Letter provided guidance on recommended disclosure and disclosure of the basis of consideration for notifiable transactions where no independent valuation is disclosed.

The HKICPA has released a guidance pertaining to the accounting for the removal of the MPF offsetting arrangement. We aim to provide our clients with a concise summary of the crucial aspects of the guidance. Background Severance Payment (“SP”) and Long Service Payment (“LSP”) as one of the statutory employee benefit schemes, under the current