technical
external analysis
This article is the continuation of my last article on Strategic Analysis
which focused on the models, theories and concepts used for analysing
purposes and expectations of the strategic analysis stage in strategic
management. In this article, I will discuss on the models, theories and
concepts for ‘external analysis’.
External analysis – Macro environment
Macro environment is the general environment of an organisation. It
is also the market (or country) environment of an organisation. It can be
analysed by using the PESTEL framework and Porter’s Diamond.
PESTEL
PESTEL stands for the Political, Economical, Social, Technological,
Environmental and Legal factors. An organisation will need to identify
the PESTEL factors which influence its strategies and operations, and
how these factors change over time.
Political factors include Inter-country relationship, political stability,
government policy on foreign direct investment, terrorist activities, trade
barriers and taxation policy. When a government changes its policy, an
organisation may be given more opportunities or may face more threats.
For instance, agreement made between China and Taiwan to allow direct
flights between certain destinations of China and Taiwan has created
business opportunities for air carrier operators, hotel and resort operators,
travel agencies as well as restaurant operators.
Economical factors include general country economy, income level
 news update autumn 2008
relevant to paper P3 & P5
of citizens in a country, inflation, taxation rate and conditions within
an industry which all affect an organisation in one way or another. For
example, Starbucks has recently announced its closure of 600 outlets in
the US and slowing down on its expansion plan. This is largely attributed
to the recession in the US, and thus has caused the US citizens not being
able to spend on buying luxury goods.
Social factors such as demographic factors (population trends)
like birth rate and aging population have significant impact on an
organisation’s strategy. In many Asian countries, aging population has
reduced the sales of an organisation producing infant products but it
also has brought opportunities for an organisation to sell new products,
for example, insurance companies start launching insurance policies to
senior citizens. In addition, cultural factors and social trends will also
influence an organisation. For instance, increase in health consciousness
has resulted in increased demand for organic food and vegetarian
restaurants in Asian countries.
Technological changes have altered the way organisations operate.
Advancement in telecommunication and Internet technologies have
enabled firms to sell their products and offer their services online. For
example, Tesco allows its customers to shop online. Technologies have
become a threat to many businesses too. For organisation like Sony,
Intel, Nokia and Creative who operate within the high-tech industries,
technological changes allow their competitors to create new products to
replace theirs. This not only intensifies competition within the industries,
these companies also ‘retaliate’ by investing enormously in their research

and development in order to stay competitive.
Environmental factors like increased awareness on issues of global
warming and energy consumption has re-directed world’s attention. As
a result, firms are trying to be more environmental friendly by producing
more environment-friendly products. A very good example is Airbus’
recent launching of the newest A380, which is currently the most fuel-
efficient passenger aircraft with the least carbon dioxide emission, the
least heat and noise generation.
For firms that operate in multi-countries, they will need to observe
legal requirements in different countries. These legislations include
business law and employment law. There is an increasing trend that
employment law in many countries especially the European countries
has given more power to the employees. This has enabled employees to
exert more pressure on firms. For instance, employees are asking for less
working hours, better pays and more benefits all of which will increase
operating costs of firms.
Porter’s Diamond
Porter’s diamond is used to assess competitive advantage of a
country. It is used to find out why an industry in a given country is
more (or less) successful than the same industry in another country. For
example, why is Germany so good in manufacturing sport cars? Porter’s
diamond identifies four factors (as shown in figure-1) to determine this.
Factor
conditions
Relating and
Demand
supporting
Conditions
industries
Firm strategy,
structure and
rivalry
Figure-1: Porters Diamond
The first factor is the factor conditions which are the resources
required for developing an industry. These resources include physical
resources like lands and materials as well as human resources including
skills, knowledge and experience needed to build the industry. Germany
is very successful for its automobile industry because it has outstanding
engineers and technologies for manufacturing cars with top quality.
The second factor is demand condition, meaning local demand for
products and services as well as expectation of local customers. There
must be a strong demand in the home market (the country itself) for the
industry’s products and services.
This factor determines how an industry responds to customers’ needs
and thus has the thrust to innovate. For instance, demanding Japanese
customers have high expectations on electrical and electronic products
which in turn have provided the driving force for electrical and electronic
industries in Japan to blossom, and Japan becoming the leading country
of such products in the global market. When domestic customer is not
demanding, it does not force the industry to innovate to be excellent.
The third factor is related and supporting industries. The success
of an industry is linked to its related industries. For example successful
technical
tourism industry in Hong Kong is supported by its food and beverage
industry, hotel and resort industry as well as retail and shopping industry.
Countries building up clusters will allow related industries to support
each other, for example Hollywood in the US (for movie making), Silicon
Valley (for IT) in India, Orchard in Singapore (for shopping), Central in
Hong Kong and Raffles Place in Singapore (for financial services).
Last but not least the fourth factor - firm strategy, structure and
rivalry. Management style and industry structure – nations are likely
to be able to have competitive advantages in the industries that
culturally suited to their normal management styles and industrial
structures. For example, systematic, hierarchical and processes of
management in Germany has been successful in providing technical
excellence in engineering industries. (Exploring corporate strategy 7th
Edition, JSW). Domestic competition amongst competitors within
the industry encourages innovation and enhances global competitive
advantages. Without domestic competition, firms within the industry
will be complacent and rely on the home market. High competition of
automobile manufacturers in Germany makes it an excellent automobile
manufacturing nation. Besides, government’s actions have an impact
on firms in an industry e.g. Malaysian automobile industry is not as
successful as its global competitors because the government practices
protectionism over foreign automobile competitors in order to protect the
local automobile manufacturers.
External analysis – Micro environment
Competition within an industry can be analysed by using Porter’s five
forces analysis. Michael Porter identifies the five forces that determine
the extent of competition in an industry. The five forces are shown in the
following figure-2.
Threat of
new entrant
Threat of
Threat of customers’ Threat of suppliers’
competitive
bargaining power bargaining power
rivalry
Threat of substitutes
Figure-2: Porter’s Five Forces
Threat of new entrant - This is the threat of new competitors; the
strength of this threat depends on existence of barriers to entry (e.g.
specialist skills required, brand and customer loyalty) and action of
existing competitor. When the barriers to entry are high, the threat of
new entrant will be low.
Threat of substitutes - This is the threat from replacement of an
organisation’s product for example budgeted airline is the substitute of
bus and train. Strength of this force depends on the quality and price of
the substitute and the switching cost. When the substitute product price
is low and its quality is equivalent to our product, the threat of substitute
will be very strong. Low switching cost will also increase this threat.
Threat of supplier’s bargaining power - This will be pressure that
autumn 2008 news update 
 technical

supplier exerts on an organisation. The strength of this threat generally falling. There is a tendency for companies to merge, which helps in cost
depends on the company size of the supplier, availability of substitutes reduction and puts up barriers to entry of new entrants because they
and customer’s volume of purchase. Generally when the customers would be too small to compete. Some companies will drop out of market
have more choices of suppliers and substitutes, the threat of supplier’s altogether.
bargaining power becomes weak. In the decline stage, competitors will exit from the industry or market
Threat of customer’s bargaining power - This will be pressure and price war may take place as firms are fighting for market share in
that customer exerts on an organisation. The strength of this threat is a declining market and at this stage competition level is the highest.
similar to threat of supplier’s bargaining power, generally depends on the Pressure from substitutes intensifies thus threat of substitutes is high.
purchase volume of the customer, availability of substitutes and switching
cost. When a customer has a few choices of suppliers and substitute SUMMARY
and / or switching cost is high, the customer’s bargaining power will be In this article we have discussed main models, concepts and theories
reduced. used to carry out strategic analysis stage in strategic management, we
Threat of competitive rivalry - This is the threat of the competition can summarise them with the following table.
among existing competitors within an industry. The strength of this
force depends on number of competitors in the industry, demand and
supply condition in the industry, availability of substitute and switching Area of analysis Models, concepts and theories used
cost. More competitors and substitutes in an industry will intensify the
competition in the industry.
Macro environment (market) PESTEL and Porter’s diamond
When the threats of the five forces are strong, the competition within
an industry will be more intensified and the less attractive the industry
will be. Micro environment Porter’s five forces analysis and
(industry/sector) Product life cycle
Life Cycle Analysis
Every market and industry have different life cycle, at different stages,
the competitive forces and critical success factors will change. Generally Reference: Exploring Corporate Strategy (7th Edition) by Johnson G,
competition becomes more and more intensified through the life cycle of Scholes K and Whittington R, Prentice Hall (2005).
an industry (or market). It is advisable to enter a market or industry that
is in the growing stage. The length of the cycle varies from industry to
industry depending on the type of product and technology. For example
life cycle for mobile phone industry is short but long for aircraft industry.
Relevant to Paper P3 & P5 - by Andy Tan
(Lecturer at Accountancy Training Company (Hong Kong and China))
Sales

Introduction Growth Maturity Decline

Competition

Sales
Time

Figure-3: Life Cycle Analysis

During the introduction stage a pioneer firm launches the product

and competition is low as there are only a few players in the industry.
When it comes to the growth stage, the product gains its demand
and become more widely known, its sales takes off as a result of active
marketing activities. At this stage competitors (new entrants) enter
(normally through imitation) and the threat of new entrant increases.
Sales reach the saturation point in maturity stage. There is no room
for new companies in the market and there is stiff competition among
the existing ones, this means the threat of competitive rivalry is high at
this stage. This is the time to look at cost reduction as profit margin is

 news update autumn 2008


a closer look in
China-Hong Kong DTA
With the introduction of the new Corporate Income Tax Law, Circular
Guoshuihan [2007] No.403 (“Circular 403”), as well as the Second
Protocol to the Arrangement between China and the Hong Kong Special
Administrative Region (“HK”) for the Avoidance of Double Taxation and
the Prevention of Fiscal Evasion with respect to Taxes on Income (“China-
HK DTA”), the concept of Permanent Establishment (“PE”) has become
more than a technical risk. In order to mitigate any potential PE risk,
many foreign enterprises are re-evaluating and restructuring their business
models in China.
In the context of most tax treaties concluded between China and
other jurisdictions, three criteria are usually used to ascertain whether the
activities of a foreign enterprise would constitute a PE in China, namely
“space” (a fixed place of business), “time” (continuous or aggregate
periods), and “function” (activities of a non–preparatory or non–auxiliary
character). In general, there are three common types of PE: - (i) A fixed
technical
place of business in China whose activities are not of a preparatory or
auxiliary character; (ii) a service PE arising from construction, assembly,
installation project or provision of services in China; (iii) an agency PE in
China.
Among the aforesaid types of PE, Service PE is traditionally the
focus of Chinese tax authorities as the local tax authorities have diverted
interpretations concerning the existence of a Service PE, despite the
established tax rules.
Service PE
Under most tax treaties concluded between China and other
jurisdictions, a Service PE is deemed to be in existence if:
(a) A building site, construction, assembly or installation project or
supervisory activities lasts more than 6 months; or
(b) The furnishing of services, including consultancy services, by a
autumn 2008 news update 
 technical
foreign enterprise, directly or through employees or other personnel
engaged by the enterprise for the same or a connected project for
a period or periods aggregating more than 6 months within any
12-month period. (“Six Months Threshold”)
Six Months Threshold for provision of services
The counting of the six months has aroused different views amongst
the Chinese Tax authorities. Some tax authorities adopt actual days that
employees provide services as the counting unit, while others treat any
day in a month as one month.
To preclude the inconsistency, the State Administration for Taxation
(“SAT”) issued Circular 403 in April 2007 to provide further guidelines
on the Six Months Threshold. Though it was issued to further clarify the
China-HK DTA, it is widely treated as a reference for other tax treaties
that China has concluded with other jurisdictions, provided that the
contents of the relevant articles are the same and no other clarifications
were previously provided.
Circular 403 regards the relevant period from the month in which
an employee of a Hong Kong enterprise arrived in China for furnishing
services up until the month in which the project was completed and
the employee left China. If no service was provided for a period of 30
consecutive days, one month can be deducted from the relevant period
in which the services were performed. Under this approach, even the
provision of services in China for a day only within one calendar month
might be counted as “one month”.
On the other hand, as reflected in Departmental Interpretation
& Practice Notes No. 44 (revised), the Hong Kong Inland Revenue
Department (“IRD”) treated a “month” as 30 days, so a “6-month” period
meant 183 days. Hence, the SAT’s interpretation was harsher than the
IRD’s and might expose more Hong Kong service providers to PE risks in
China.
In an attempt to resolve such differences, the Second Protocol to the
China-HK DTA was signed on 30 January, 2008. Under the Protocol,
the term “6-month” is now replaced with “183 days”. For instance, if an
employee of a Hong Kong enterprise provides services in China for 10
days per month, the PE exposures of the enterprise under Circular 403
and the Protocol are different. Under Circular 403, the relevant period
in case is 12 months, which exceeds the Six Months Threshold and
constitutes PE in China. Under the Protocol, the relevant period is 120
days, which is less than the stated 183 days and would not give rise to
PE in China as a result.
The Protocol, however, does not stipulate the transitional treatment of
the change in counting periods in the China-HK DTA (i.e. from 6-months
to 183 days).
Connected project
Connected project is another not well-defined grey area. Whether or
not two service projects are connected is a question of fact and should be
judged on a case-by-case basis.
Some Chinese tax authorities adopt the “entity-to-entity’ approach,
i.e. the projects performed for the same client by the same company
10 news update autumn 2008
are regarded as connected projects; while some consider the projects
performed by different business units of the same company, even if
for the same client, are unconnected. In addition, some view that two
projects are connected if they form a coherent whole commercially and
geographically based on the facts of the cases.
Though both the United Nations (“UN”) and Organisation for
Economic Co-operation and Development (“OECD”) Commentary have
not laid down further guidance regarding connected project for provision
of services, we may also take reference to the relevant interpretation
for building site, construction or installation project in the OECD
Commentary, which states that a building site should be treated as a
single unit, even though there are several contracts, as long as it forms
a coherent whole commercially and geographically. On the other hand,
where sub-projects are situated at different localities and are contracted
for in relation to different projects, they are regarded as unconnected
projects.
Absence of person availing services – Indirect utilisation of services
Another issue about the existence of PE in China is whether it is
necessary to have the presence of the person availing services in China.
As illustrated in the graph below, Y. Ltd proposes to make investment
in a company in China and engages X Ltd (a Hong Kong company) for
the purpose of carrying out due diligence of the proposed target company.
The employees of X Ltd regularly interact with Y Ltd and discuss their
findings and give their commendations as to whether or not to make
investment. Employees of X Ltd visit China for 190 days and carry out
the due diligence activities, including checking the records and activities
of the target company.
Y Ltd. X Ltd.
Overseas
China
Employees of X Ltd.
Due Diligence
Based on the China-HK DTA, as the employees of X Ltd are actively
interacting with and advising Y Ltd from China, it is likely that X Ltd
has rendered services within China. The fact that the person availing
such services (i.e. Y Ltd) is absent in China is not important and can be
disregarded.
Provision of services to the head office
The overseas head office of a foreign enterprise may send its
employees to China and these employees may render services from China
to the head office. The issue that arises is whether this situation would
result in a Service PE.
As illustrated in the diagram below, Y. Ltd (a Hong Kong company)

proposes to make investment in a company in China and send its
employees to China for the purpose of carrying out due diligence of the
proposed target company. The employees of Y Ltd regularly interact with
the head office and discuss their findings and give their commendations
as to whether or not to make investment. Employees of Y Ltd visit China
for 190 days and carry out the due diligence activities, including checking
the records and activities of the target company.
Y Ltd.
Hong Kong
China
Employees of Y Ltd.
technical
management and control of the production and business operation,
personnel, accounting, properties, etc of a foreign company is located.
Since this definition is broadly worded, it is usually interpreted as, but not
limited to, the place of board meetings and day-to-day management.
Companies that could potentially fall within the scope of TREs include
China investors with “round-trip investment structure” (i.e. a Chinese
investor setting up a foreign holding company which makes investment
back into China); China regional headquarters of MNCs; companies with
processing and sourcing arrangements where the management activities
is in China; and overseas investment holding companies where the
business is in China. The SAT and the local tax authorities may interpret
this provision in a discretionary manner to different situations according
to the tax enforcement agenda of the tax authorities.
Foreign enterprises should pay attention to their management and
control functions in China and take necessary safeguards to prevent being
treated as a TRE and subject to PRC CIT on its worldwide income.

Due Diligence

Under China-HK DTA, a Service PE is constituted if the services

are furnished by an enterprise. If the services are to be rendered by
an enterprise, then there has to be a party to whom such services are
rendered. In this case, although the employees of Y Ltd are rendering
services, there is no third party to whom services are rendered. The
employees are rendering services to the head office which is like
rendering services to self. Since the tax treaty contemplates existence
of two parties, so it is unlikely that the presence of employees in China
would result in a Service PE.

Possible safeguards
To mitigate any potential PE risk, the following good safeguard
measures are recommended:-
® review their employees’ travel pattern in China;
® second the employees who work extensively on China projects to a
PRC entity;
® monitor the time spent on a project by project basis to ensure that
the foreign company to avoid furnishing services in China through
its employees for the same or connected project for a period or
periods aggregating more than six months (or 183 days) within any
12-month period; and
® state the onshore and offshore activities clearly in contracts, etc.
Conclusion
Tax Residency Though the Chinese tax authority has relaxed the Six Months
Tax Resident Enterprise (“TRE”) is a new concept introduced by the Threshold concerning Service PE by adopting 183 days in the recently
newly promulgated Corporate Income Tax (“CIT”) Law effective on 1 issued Protocol, many related issues, namely connected projects, absence
January 2008. A TRE is an entity incorporated outside China but its “place of person availing services and provision of services to head office, remain
of effective management” is in China. Under Article 3 of the CIT Law, if uncertain. Furthermore, the new TRE concept signifies the Chinese tax
a foreign entity is considered to be a TRE, it will be subject to CIT on its authority is escalating its efforts to consolidate and expand its tax base.
worldwide income. Amid the ever-changing tax environment in China, foreign enterprises
The Detailed Implementation Rules of the CIT Law defines the “place should keep abreast of the latest taxation development, and take relevant
of effective management” as the place where the exercising of the overall precautionary measures.

autumn 2008 news update 11

 technical
technical highlights
International
International Financial Reporting Standards
The International Accounting Standards Board (IASB) issued the
following amendments:
® Amendments to IAS 32 Financial Instruments: Presentation and
IAS 1 Presentation of Financial Statements – Puttable Financial
Instruments and Obligations Arising on Liquidation. The amendment
aims to improve the accounting for particular types of financial
instruments that have characteristics similar to ordinary shares but at
present classified as financial liabilities.
® Amendment to IFRS 2 Share-based Payment. It clarifies that vesting
conditions are service conditions and performance conditions only,
and specifies that all cancellations, whether by the entity or by other
parties, should receive the same accounting treatment.
Both amendments will apply for annual periods beginning on or after
1 January 2009, with earlier application permitted.
International Standards on Auditing (ISAs)
The International Auditing and Assurance Standards Board (IAASB)
released the following International Standards on Auditing (ISAs)
® ISA 230 (Redrafted) Audit Documentation. The standard explains
what is expected of the auditor in fulfilling the requirement to
document compliance with ISAs and provide guidance regarding the
circumstances in which it is appropriate for the auditor to prepare
audit documentation relating to the use of professional judgements.
® ISA 260 (Revised and Redrafted) Communication with Those
Charged with Governance. It sets out an overarching framework for
communication with those charged with governance and identifies
specific matters to be communicated by the auditor, including a
requirement to communicate in writing about auditor independence.
12 news update autumn 2008
® ISA 540 (Revised and Redrafted) Auditing Accounting Estimates,
Including Fair Value Accounting Estimates, and Related Disclosures.
The standard addresses matters such as the auditor’s evaluation
of the effect of estimation uncertainty on risk assessments,
management’s methods for making estimates, the reasonableness of
assumptions used by management, and the adequacy of disclosures.
® ISA 720 (Redrafted) The Auditor’s Responsibility in Relation to Other
Information in Documents Containing Audited Financial Statements.
It requires auditor to read the other information in documents
containing audited financial statements and the corresponding
auditor’s report, and to respond appropriately when such information
could undermine the credibility of the financial statements.
These standards will be effective for audits of financial statements for
periods beginning on or after 15 December 2009.
The IAASB will amend the following International Standards on
Review Engagements (ISREs) to clarify to which engagements each
respectively is to be applied:
® ISRE 2400 Engagements to Review Financial Statements; and
® ISRE 2410 Review of Interim Financial Information Performed by
the Independent Auditor of the Entity.
ISRE 2410 will be amended to apply to reviews by the entity’s
auditor of historical financial information other than interim financial
information. And ISRE 2400 will then only be restricted to the review of
any historical financial information performed by a practitioner who is not
the entity’s auditor.
The International Accounting Education Standards Board (IAESB) has
released the following International Education Practice Statement (IEPS)
3 Practical Experience Requirements – Initial Professional Development
for Professional Accountants. The practice statement suggests how
IFAC members and associates may meet the requirement for a period of
 technical
practical experience for trainees to qualify as professional accountants, Mainland China
and explains how workplace output can be used to assess competence 2007年12月29日，第十屆全國人大常委會第三十一次會議審議通
developed by trainees during that period. 過了《全國人民代表大會常務委員會關於修改〈中華人民共和國個人所
得稅法〉的決定》，將《中華人民共和國個人所得稅法》規定的工資、
For more details, please visit www.ifac.org. 薪金所得可減除費用的標準由每月1600元提高到2000元。從2008年3
月1日起施行。 此外，國務院公佈了《國務院關於修改〈中華人民共和
Hong Kong 國個人所得稅法實施條例〉的決定》（下稱《條例》），於今年3月1日
Taxation 起與新修訂的《個人所得稅法》同步施行。《條例》將個人承包經營、
承租經營所得的減除費用標準由每月1600元提高到2000元。其次，調
A frequently asked question has been introduced by the Inland
整了在中國境內無住所而在中國境內取得工資、薪金所得的納稅人和在
Revenue Department regarding share-based compensation in form for
中國境內有住所而在中國境外取得工資、薪金所得的納稅人的工資、薪
stock option or share award. It clarifies that where stock option or
金所得的附加減除費用標準由每月3200元調整為2800元。
share awards is granted by a parent company and upon recharging,
the recharge to the entity concerned will only be deductible when the 詳情請瀏覽www.chinatax.gov.cn。
entity has become unconditionally liable to pay the recharge. As such,
any provision for the recharge will be disallowed if the parent company 鑒於股息紅利是稅後利潤分配形成的，對股息紅利收入免征企業所
has not issued the shares. Only the amount settled by an entity under 得稅，是國際上消除法律性雙重徵稅的通行做法，國家稅務總局印發
a cost-recharge arrangement with its parent or fellow subsidiary will be “關於新企業所得稅法及其實施條例的宣傳口徑的通知”，確定對於來
deductible. 自所有非上市企業，以及持有上市公司股份12個月以上取得的股息紅利
收入，適用免稅政策。將持有上市公司股票的時間短於12個月的股息紅
Changes to suspension policy 利收入，不在免稅範圍之內。詳情請瀏覽www.chinatax.gov.cn。
Currently, trading in an issuer’s shares will be suspended during the 財政部、國家稅務總局2008年2月20日發佈《關於貫徹落實國務院
morning session if the Main Board issuer publishes announcement with 關於實施企業所得稅過渡優惠政策有關問題的通知》（財稅[2008]21
price sensitive information between 6:00am and 9:00am on a trading 號），對新舊企業所得稅優惠政策過渡銜接工作的有關事項進行了規
day. With effect from 10 March 2008, no trading suspension will be 定。該通知明確，享受企業所得稅定期減半優惠過渡的企業，應按照規
imposed on such situation. Likewise, starting from 10 March, an issuer 定實行過渡稅率計算的應納稅額實行減半徵稅。
can publish any announcement including price sensitive information
詳情請瀏覽www.chinatax.gov.cn。
between 12:30pm and 2:00pm on a trading day and no suspension will
be imposed.
香港和內地於1月30日簽署了兩地關於對所得避免雙重徵稅和防止
偷漏稅的安排第二議定書。新的議定書對《安排》有關條款內容做了進
For more details, please refer to www.hkex.com.hk.
一步的規定，旨在解決有關執行中的解釋差異等問題。

Certificate of Change of Name 詳情請瀏覽www.chinatax.gov.cn。

With effect from 1 January 2008, a warning statement will be
included in Certificates of Incorporation and Certificates of Change of 中國註冊會計師協會發佈實施《註冊會計師任職資格檢查辦法》，
Name of local companies issued by the Companies Registry as well as 於2008年2月3日起執行。規定註冊會計師協會依法按年度對與註冊會
Certificates issued under section 305(1) of the Companies Ordinance. 計師任職資格事項有關的情況進行檢查。註冊會計師應當就前一個年度
This is to remind companies incorporated under the Companies 從事的主要業務情況、繼續教育學時完成情況、會員義務履行情況以及
Ordinance that the registration of a company name with the Companies 獲得獎勵或受到懲處的情況等提交檢查材料。
Registry does not confer any intellectual property rights over the company
name, nor is it a defence to any subsequent claims for infringements of 詳情請瀏覽www.cicpa.org.cn。
any trade mark or intellectual property rights.
中國註冊會計師協會發佈《註冊會計師和會計師事務所信息披露制
For details, please refer to www.cr.gov.hk. 度》，對披露註冊會計師和事務所信息提出要求並作出規範，主要包括
信息披露的原則、種類、具體內容、渠道，以及信息披露各方責任等，
於2007年12月1日起實施。
MPF Schemes (Amendment) Bill 2007
On 9 January, the Legislative Council passed the MPF Schemes
詳情請瀏覽www.cicpa.org.cn。
(Amendment) Bill 2007. Major amendments cover including housing
allowance and other housing benefits in the definition of relevant income The technical highlights is prepared to provide general reference only, and hence
and removing the 30-day settle period for MPF contributions. Employers is not a comprehensive list. Accordingly, we recommend that readers refer to the
will be required to contribute by the contribution day, that is within 10 relevant consultations, guidelines or standards for details. While all reasonable
days after the end of the contribution period. care has been taken to ensure information provided is correct, no responsibility
The MPF Schemes (Amendment) (No. 2) Bill 2007 was also is accepted by ACCA for any errors it might contain, or for any loss to any person
introduced, which proposes a heavier penalty on non-compliant acting or refraining from action as a result of reliance on any such information.
employers to achieve better deterrence and to enhance supervision of
MPF schemes.

Details can be referred to www.mpfa.org.hk.

autumn 2008 news update 13

14 news update autumn 2008