what ceos really think

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  • What CEOs

    Successful CFOs-turned-CEOs share the importance of developing the people-oriented right brain to moving up the leadership ladder

    Issue 1 / Volume 12 / January 2016

    really think


    Plus:ProfileCICPA President Feng Shuping

    Capital marketsChina stock market crash

    LifeCPAs in love

  • Presidentsmessage


    January 2016 1

    Dear members,

    It is my honour and privilege to be elected as the Institute President this year, especially as the second woman to hold this position. I hope this helps reinforce the professions efforts in supporting women in the workplace. Indeed, the gender ratio of our membership has already reached 50:50, and the majority of students are female. We under-stand, however, that more needs to be done to help women reach leadership positions in both the profession and wider business. To be successful in todays complex business environment, company boards need to be multi-skilled and embrace true diversity, taking into account not only gender, but also age, culture, skills, experience and thinking style.

    As I said to the media earlier, the Institute has six major tasks this year. Top of the list is our con-tinuing advocacy for audit regula-tory reform with a focus on three areas: the need to clearly separate sanctioning powers from those of inspection and investigation within the independent oversight body, which should also have adequate qualified audit professionals to effectively perform regulatory functions; the need to have sanc-tioning guidelines; and the opera-tional costs of the oversight body should come from investors. Before the relevant bill will be submitted

    to the Legislative Council in Octo-ber, we will continue talking to the government and urge for these rea-sonable changes.

    Second, we will continue to look into the review of the Professional Accountants Ordinance. There have been piecemeal revisions over the years, but to make the legislation, which has been enacted for more than 40 years, more relevant in the 21st century and in line with local and international best practices, there is a need for a comprehensive update. Consultations with members and stakeholders will be conducted as appropriate as this is an important issue with far-reaching impact.

    Third, we will continue to liaise with the Ministry of Finance to establish a mechanism for Hong Kong regulators, including the Institute, regarding access to audit working papers. There has been good progress over the overall direction but since it involves a number of Mainland parties, reach-ing a final agreement takes time.

    Fourth, is to review the qualify-ing process for our next generation of CPAs. To uphold the quality of CPAs and maintain our global recognition, we will improve our Qualification Programmes con-tent and structure to make sure our prospective members have the skill sets that meet the demands of employers and the global market,

    as well as drive business growth and sustainability.

    Fifth, we will keep on enhanc-ing our engagement and support to members, whether they are in prac-tice or in business, by offering more practical training, thought leader-ship events, recreational activities, as well as community services. All of these aim to help them achieve career success, work-life balance and strive to be socially responsible.

    Last but not least, we will con-tinue to tailor-make services to different membership sectors such as our young members. The highly successful mentorship programme will begin the second matching this year to help aspiring members learn from their seniors in charting their career paths. There will also be other programmes supporting their specific needs.

    With these six tasks running in full steam and other work to be done under the Sixth Long Range Plan, I look forward to another vibrant year at the Institute. Of course, your constant feedback is important so do give your views whenever we meet or via other communication channels such as our new Facebook page.

    I look forward to meeting you at the Institute events and taking this opportunity, I wish you a fantastic new beginning in the New Year.

    To be successful in todays complex business environment, company boards need to be multi-skilled and embrace true diversity.

    Ivy CheungPresident

  • ContentsIssue 1 / Volume 12 / January 2016


    01 Presidents message

    04 Institute news

    06 Accounting news


    10 From CFO to CEO Successful CEOs share their career development paths that went from CFO to the companys top position

    17 Thought leadership: Bernard Chan The Chairman of the Hong Kong Council of Social Service on the need for companies to carry out socially responsible objectives

    18 Leadership: Feng Shuping President of the Chinese Institute of CPAs discusses how the profession can help Chinas internationalization

    25 How to Kriss Will on effective workplace flexibility policies

    26 Getting Chinas rollercoaster under control Mainland shares spiralled downward at the beginning of this year, alarming the world. Whats next for Chinas stock market?

    32 Success ingredient: Ma Chan-chi Deputy Chief Executive and CFO at China Construction Bank (Asia) shares how he went from bookkeeping to facing rapid changes in banking

    38 Greater growth CPAs harness their romantic relationships to encourage mutual betterment


    44 Benefits-in-kind capable of converting into money are taxable at the time of receipt Employers are required to report benefits received by an employee that do not take the form of money, and the process can be complicated

    46 The role of internal auditors in enterprise risk management Amendments to the Corporate Governance Code, effective after 1 January 2016, can create value for organizations through internal auditing

    49 Technical update Provision of non-assurance services to audit clients

    50 TechWatch 158

    26Getting Chinas rollercoaster under controlChinas stocks start the year with big tumbles. What's next?

  • About our nameA PLUS stands for excellence, a reference to our top-notch accountant members who are success ingredients in business and in society. It is also the quality that we strive for in this magazine going an extra mile to reach beyond Grade A.

    President Ivy Cheung

    Vice Presidents Mabel Chan, Eric Tong

    Chief Executive and Registrar Raphael DingEmail: ce@hkicpa.org.hk

    Head of Corporate Communications Stella To

    Editorial Advisory Group Daniel Lin (Convenor), Eric Tong (Deputy Convenor), Eugene Liu, Alec Tong, Edward Tsui, Yip Ka-ki, Stanley Yuen, Raphael Ding, Chris Joy

    Editorial Manager John So

    Editorial Coordinator Maggie Tam

    Office Address37/F, Wu Chung House, 213 Queens Road East, Wanchai, Hong KongTel: (852) 2287-7228 Fax: (852) 2865-6603

    Member and Student Services Counter27/F, Wu Chung House, 213 Queens Road East, Wanchai, Hong Kong Email: www.hkicpa.org.hk Website: hkicpa@hkicpa.org.hk

    Acting Editor Gerry HoEmail: gerry.ho@mandl.asia

    Copy Editor Jemelyn Yadao

    Contributors Tigger Chaturabul, Cathy Holcombe, Robin Lynam, George W. Russell

    Editorial Assistant Queenie Lee

    Production Manager Jasmine Hu

    Designer Trevor Cheng

    Editorial Office 2/F, Wang Kee Building, 252 Hennessy Road, Wanchai, Hong Kong

    ADVERTISING ENQUIRIESAdvertising Director Derek TsangEmail: derek.tsang@mandl.asiaTel: (852) 2656-2676

    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 January 2016. Print run: 7,050 copiesThe digital version is distributed to all 39,729 members, 18,260 students of the Institute and 2,252 business stakeholders every month. Subscription: HK$760 for 12 issues per year.See www.hkicpa.org.hk/aplus for details.


    52 Books Green Giants: How Smart Companies Turn Sustainability into Billion-Dollar Businesses reviewed; Interview with author E. Freya Williams

    54 Life and everything Gemstones and hiking trails as recommended by Institute members

    56 A life in the day Nury Vittachi meets Florence Kong, Finance Director of 10 Design

    18Leadership: Feng ShupingPresident of the ChineseInstitute of CPAs looks at the accounting professions growing influence in the countrys economic development

    Book review

  • News Institute news Accounting news

    Institute news

    The Institute elected Ivy Cheung as President for 2016, and Mabel Chan and Eric Tong as Vice Presidents, at its 43rd annual general meeting in December. Cheung is a Partner of KPMG. Since joining the Council four years ago, she has served on many committees, including as Chair of the Professional Conduct Committee, which is fundamental to the regulatory role of the Institute. Mabel Chan is Founder of Mabel Chan & Co. and Eric Tong is Audit Partner of Deloitte Touche Tohmatsu China.

    Seven members were elected to serve on the Council for a term of two years. Newly elected but returning members to the Council are Mabel Chan, Jennifer Cheung, Nelson Lam, Patrick Law, St