Restructuring of Hong Kong standards along IASB lines
14 Apr 2004
It is the policy of the Financial Accounting Standards Committee (FASC) of the Hong Kong Society of Accountants (HKSA) to base Hong Kong accounting standards on IFRSs.
The goal is to achieve convergence "as far as practicable". In recent years most standards are nearly identical, and in most cases compliance with the Hong Kong standard will ensure compliance with the relevant IFRS. Each Hong Kong Statement of Standard Accounting Practice (SSAP) contains a section explaining how it relates to the IFRS dealing with the same topic.
Hong Kong standards will be restructured to coordinate better with IFRSs. SSAPs will be renamed as Hong Kong Accounting Standards (HKASs), and their numbering will be aligned with the IASs. Just as new IASB standards are known as International Financial Reporting Standards, so new HK standards will be known as Hong Kong Financial Reporting Standards (HKFRSs). FASC interpretations will be similarly reorganised to conform to the IASB structure.
