On November 30, 2023, Faculty of Finance, the City University of Macau organized the Finance Seminar Series [12] at the Ho Yin Convention Center. The seminar titled " Discussion on Accounting Standard and Relevant Taxation Treatment " featured Ms. Evy Wong, Principal Partner (Tax and Advisory) at CWK Global CPA Limited as the guest speaker. Guests attending this seminar include Mr. Dennis Kwong, Audit Manager and Mr. Alfred Siu, Audit Partner at CWK Global CPA Limited.

Ms. Evy Wong, first introduced the tax regulations for enterprises in leasing arrangements. In a lease arrangement, tax considerations mainly involve tax deductions on costs and taxable income. The tax cost deduction includes arrangements for lease interest and related expenses, while the income tax payable involves tax benefits. Tax cost deductions can help businesses reduce costs. For example, lease interest and related expenses can be deducted in the calculation of corporate income tax, which can help reduce the tax burden on the business. Lease arrangements may also involve other costs, such as maintenance and repair costs during the lease period. In terms of income tax due, certain lease contracts may be subject to tax exemptions, tax deductions, or deferrals based on certain conditions. These tax considerations can have a significant impact on a business's financial position and tax burden, so businesses should carefully consider the relevant tax considerations to achieve the best results when making leasing arrangements.

In the second part of the lecture, Mr. Dennis Kwong, the audit manager, supplemented the accounting knowledge of financing leases. According to the accounting standards, financing leases can be divided into two types: finance leases and operating leases. Finance lease mainly refers to the lease contract that has a significant degree of control over the transfer of ownership of the leased assets and the granting of the right to use the lease period. An operating lease is a lease contract that grants the right to use the leased asset without transferring ownership and control. Mr. Dennis Kwong explained in detail the examples from the perspectives of lessees and lessors, including the recognition of lessees’ assets and liabilities and the reduction of lease liabilities; recognition of lease income and presentation of related assets by the lessor.

Lastly, during the Q&A session, students actively raised questions to the speaker, Ms. Evy Wong provided valuable explanations. The seminar enriched students understanding in corporate tax and accounting treatment methods of financing leases. The City University of Macau expresses gratitude to Ms. Evy Wong and Mr. Dennis Kwong for the excellent presentation. Students are looking forward to the next finance seminar.