SME standard adopted in Hong Kong

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30 Aug 2005

The Hong Kong Institute of Certified Public Accountants has issued its Financial Reporting Framework and Standard for Small and Medium-sized Entities (SMEs).

The standard applies to the following entities for financial statements covering a period beginning on or after 1 January 2005, with earlier application is permitted:
  • Hong Kong companies that prepare financial statements under section 141D of the Companies Ordinance. These are private companies where all owners agree to apply that section, and
  • Overseas incorporated entities that do not have public accountability and qualify on the basis of size thresholds given in the Standard.
The new standard is effective for qualifying entities with financial statements covering a period beginning on or after 1 January 2005. Earlier application is permitted. The IASB is working toward developing separate Accounting Standards for SMEs.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.