Members' Handbook Volume II - "Financial Reporting Standards"
To access the members' handbook, please click here.
Financial reporting Standards
As explained in the Preface to Hong Kong Financial Reporting Standards, the term "Hong Kong Financial Reporting Standards" includes all HKFRS, Hong Kong Accounting Standards (HKAS), and Interpretations issued by the Hong Kong Institute of Certified Public Accountants.
HKFRS set out recognition, measurement, presentation and disclosure requirements dealing with transactions and events that are important in general purpose financial statements. HKFRS are based on The Framework for the Preparation and Presentation of Financial Statements, which addresses the concepts underlying the information presented in general purpose financial statements.
The appropriate application of HKFRS, with additional disclosure when necessary, results, in virtually all circumstances, in financial statements that give a true and fair view.
The Institute issued the SME Financial Reporting Framework (SME-FRF) and Financial Reporting Standard (SME-FRS) which are standards of accounting practices for SMEs that qualify for reporting under the SME-FRF. For details, please click here.
Interpretations collectively refers to Hong Kong (IFRIC) Interpretations (HK(IFRIC)-Int), Hong Kong Interpretations (HK-Int), Hong Kong (SIC) Interpretations (HK(SIC)-Int) and Interpretations of SSAPs issued by the Hong Kong Institute of Certified Public Accountants (formerly known as Hong Kong Institute of Certified Public Accountants). Interpretations give authoritative guidance on issues that are likely to receive divergent or unacceptable treatment, in the absence of such guidance.
- With effect from 24 May 2005, HKAS Interpretations (HKAS-Int) and HKFRS Interpretations (HKFRS-Int) are renamed HK(SIC) Interpretations (HK(SIC)-Int) and HK(IFRIC) Interpretations (HK(IFRIC)-Int) respectively. The numbering of these Interpretations are unaffected by the changes in names.
- With effect from 24 May 2005, all Interpretations that are developed locally by the Institute are named Hong Kong Interpretations.
Due process and comparison with IFRS
This page links to the following documents (available in Adobe Acrobat format).
- Information paper "Setting Hong Kong financial reporting standards"
- Comparison between Hong Kong Financial Reporting Standards and International Financial Reporting Standards
- Policy on providing interpretations or rulings on financial reporting issues
- International Accounting Standards Boards (IASB)
- A Plus article on dual compliance with HKFRSs and IFRSs