Wong Tak Man Stephen and Rsm Nelson Wheeler v. The Registrar of the Hong Kong Institute of Certified Public Accountants

FAMV No. 51 of 2016

IN THE COURT OF FINAL APPEAL OF THE

HONG KONG SPECIAL ADMINISTRATIVE REGION

MISCELLANEOUS PROCEEDINGS NO. 51 OF 2016 (CIVIL)

(ON APPLICATION FOR LEAVE TO APPEAL FROM

CACV NO. 233 OF 2015)

____________________

BETWEEN

____________________

________________________

D E T E R M I N A T I O N

________________________

The Appeal Committee:

1.We grant leave to appeal on the following questions of great general or public importance, namely:

(1) Do auditors who, without more, wrongly interpret or apply a professional standard in discharging their function as auditors thereby commit a breach of s.34(1)(a)(vi) of the Professional Accountants Ordinance, Cap.50 (“PAO”)?

(2) Does s.34(1)(a)(vi) of the PAO import a standard of reasonableness or other similar considerations which are relevant to assessing whether an auditor has “failed or neglected to observe, maintain or otherwise apply a professional standard” within the meaning of such provision?

(3) On the true construction of Hong Kong Accounting Standard 39, must an impairment adjustment be made once there has been a significant or prolonged decline in the fair value of an available-for-sale asset?

2.The appeal will be heard on 4 December 2017.

Mr Johnny Mok SC and Mr Adrian Lai, instructed by Wilkinson & Grist, for the 1^st and 2^nd Respondents (1^st and 2^nd Applicants)

Mr Alexander StockSC, instructed by Reed Smith Richards Butler, for the Complainant (Respondent)