Hong Kong decides not to adopt IAS 40
16 Oct 2002
The Hong Kong Society of Accountants has decided not to replace Hong Kong's existing investment property accounting standard with IAS 40. Over the past several years, under a policy adopted by the HKSA Council, the HKSA has replaced many Hong Kong standards with the related IAS standard essentially verbatim.
However, a number of property companies in Hong Kong have expressed significant concerns about IAS 40. The main issue of concern is reporting changes in the fair value of an investment property as part of profit or loss. Both the HKSA Council and its Financial Accounting Standards Committee concluded that the HKSA should await completion of IASB's Performance Reporting project before taking the matter up again.
