What accounting standards are used in Hong Kong?
p>The accounting standards applied by Hong Kong are called Hong Kong Financial Reporting Standards (HKFRS) and are a complete set of guidelines on financial reporting, very similar to those required internationally. They are issued by the Hong Kong Institute of Certified Public Accountants, and they offer a standard approach to making financial reports internationally acceptable.
Hong Kong provides several reporting options under the HKFRS framework to support different types of entities:
- HKFRS (Full Standards): These are applied by publicly listed companies and other big corporations that call for comprehensive disclosures.
- HKFRS for Private Entities: This is developed specifically for private entities, which are not required to make publicly accountable reports.
- SME-FRF & SME-FRS: This is a simplified framework targeting small and medium-sized entities that meet certain eligibility criteria. It will ease the administrative burden yet ensure accuracy.
These standards are amended from time to time, whenever there is a need to reflect changes in the financial world and also to keep pace with international requirements. The application of HKFRS will definitely help organizations in Hong Kong present clarity of financial statements, facilitate statutory audits, and enhance confidence among investors, partners, and regulatory authorities. This systematic approach ensures that financial information remains consistent, credible, and suitable for long-term decision-making.
