Hong Kong adopts IFRS for SMEs with a modification
May 05, 2010
On 30 April 2010 the Hong Kong Institute of Certified Public Accountants (HKICPA) issued the Hong Kong Financial Reporting Standard for Private Entities (HKFRS for Private Entities).
This new standard is identical to the IFRS for SMEs except for a modification relating to the income tax requirements. The HKICPA has replaced the recognition and measurement principles contained in Section 29 Income Tax of the IFRS for SMEs with those contained in IAS 12 Income Taxes, while retaining the relevant disclosures in the IFRS for SMEs. In addition, the HKICPA has restricted the amount of deferred tax recognised in relation to the revaluation gain for investment properties to the amount that would be payable upon its sale to an unrelated market participant at fair value at the end of the reporting period.
The HKFRS for Private Entities is effective immediately as an option for SMEs in Hong Kong. Eligible entities are permitted to use the standard to prepare their financial statements for prior periods where the relevant financial statements have not been finalised and approved.
Click for HKICPA Press Release (PDF 25k).