HKFRS for Private Entities (私營企業香港財務報告準則)
Welcome to the HKFRS for Private Entities Information Centre
The Hong Kong Institute of Certified Public Accountants (HKICPA) issued the Hong Kong Financial Reporting Standard for Private Entities (HKFRS for Private Entities) as a financial reporting option for Private Entities on 30 April 2010 with the objective to ease the reporting burden of Private Entities by relieving them of the requirement to apply full Hong Kong Financial Reporting Standards (HKFRSs).
Private Entities is defined in Section 1 of HKFRS for Private Entities as entities that:
|(a)||do not have public accountability; and|
|(b)||publish general purpose financial statements for external users. Examples of external users include owners who are not involved in managing the business, existing and potential creditors, and credit rating agencies.|
Paragraph 1.3 of HKFRS for Private Entities states that an entity has public accountability if:
|(a)||its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or|
|(b)||it holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses. This is typically the case for banks, credit unions, insurance companies, securities brokers/dealers, mutual funds and investment banks.|
Entities are not mandated to adopt the HKFRS for Private Entities even they are eligible to do so. The scope and applicability of HKFRSs and Small and Medium-sized Entity Financial Reporting Framework and Financial Reporting Standard remain unchanged.
HKFRS for Private Entities is effective immediately upon issue on 30 April 2010. Eligible entities are permitted to use HKFRS for Private Entities to prepare their financial statements for prior period(s) where the relevant financial statements have not been finalised and approved.
What you were looking for? Find out about HKFRS for Private Entities
- What's new
- Pronouncement of HKFRS for Private Entities
- Training and Information Events
- Webcasts in relation to HKFRS for Private Entities
- World Bank Webcasts on IFRS for SMEs
- Technical Resources on HKFRS for Private Entities / IFRS for SMEs
- IASB IFRS for SMEs Update Publication
- Training Modules by the IFRS Foundation
- Non-mandatory Question and Answers by the SME Implementation Group
- General Enquiries
The pronouncement of HKFRS for Private Entities includes the followings:
- HKFRS for Private Entities
- Basis for Conclusions
- Illustrative Financial Statements and Presentation and Disclosure Checklist
Click here to download.
The IASB has posted the Chinese translation of IFRS for SMEs (not HKFRS for Private Entities) at its website. Please click here for further information on downloading the document.
Please also refer to the latter part of this Information Centre for the amendments made to IFRSs for SMEs by the HKICPA's Financial Reporting Standards Committee to suit the Hong Kong business and financial reporting environment.
22 September 2014 (Monday)
26 September 2014 (Friay)
9 October 2014 (Thursday)
Venue: HKICPA Training Centre
The World Bank has made available for viewing on their website a two-part webcast presentation by Paul Pacter (IASB Board Member and Director, Standards-SMEs) An Overview of the IFRS for SMEs. Each part is approximately one hour long. The presentation reviews the requirements in each of the 35 sections of the IFRS for SMEs and highlights differences with full IFRSs.
To view the webcast presentations:
Technical Resources on HKFRS for Private Entities / IFRS for SMEs
- Illustrative financial statements
- Applicability of HKFRS for Private Entities
Highlights on the IFRS for SMEs / HKFRS for Private Entities
- Ernst & Young IFRS for SMEs - Talking SMEs (June 2012)
- Deloitte HKFRS for Private Entities in your pocket - Good financial reporting made simple (April 2011)
- Deloitte IFRS for SMEs in your pocket
- Deloitte IAS Plus Update (July 2009) - Simplified financial reporting – IASB provides relief for SMEs
- KPMG The IFRS for SMEs: Considering the alternatives
- KPMG IFRS Briefing Sheet (Issue 144) - IFRS for Small and Medium-sized Entities
- PwC IFRS for SMEs - Pocket Guide
- PwC Similarities and differences - a comparison of IFRS for SMEs and 'full IFRS'
- Ernst & Young Supplement to IFRS Outlook (Issue 49) – IFRS for SMEs
- Mazars Techncial Bulletin on HKFRS for Private Entities
- BDO HKFRSs / IFRSs update: (11 June 2010 issue): HKFRS for Private Entities - A New Financial Reporting Option
- BDO HKFRSs / IFRSs Update (27 August 2009 issue)
- BDO HFKRSs / IFRSs Update (14 October 2010): HKFRS for Private Entities: Less is More
- Sample example reports by auditors
- IASB Guide to IFRS for SMEs
- "A Guide to IFRS for SMEs" is an IASB publication which provides an overview of IFRS for SMEs to lenders, creditors, owner-managers and others who use SME financial statements.
- Illustrative guidance to IFRS for SMEs - a guide for micro-sized entities applying the IFRS for SMEs (2009 version).
- Other technical resources
- IASB IFRS for SMEs website
- HKICPA Statement of Intent (January 2010)
- HKICPA Executive Director's email of 28 January 2010 (Financial Reporting and Auditing Alert 7)
- High level Comparison Between full HKFRSs and HKFRS for Private Entities
- High Level Comparison between HKFRS for Private Entities and SME-FRF & FRS
- High Level Comparison between HKFRS for Private Entities and SME-FRF & SME-FRFs (Revised)
- BDO International Reporting Standards and Not for Profit Entities
Members and stakeholders are advised that the following amendments to IFRS for SMEs have been made by the HKICPA's Financial Reporting Standards Committee to ensure that HKFRS for Private Entities suits the Hong Kong business and financial reporting environment:
Note 1: Rationale for the above-mentioned modifications is explained in paragraphs 12-13 of Statement of Intent.
The IFRS for SMEs Update is a regular staff summary, published by the IASB, of news relating to the IFRS for SMEs.
Click here to access the publications.
The IFRS Foundation has developed a comprehensive set of training materials for the IFRS for SMEs (33 modules released in total). The training material is designed to assist companies and accounting practitioners in applying the standard. It will also assist educators in teaching how to apply the IFRS for SMEs. Once completed, the training material will comprise 35 separate modules—one for each section of the IFRS for SMEs.
Click here to access the training modules (comprise of 28 modules in total).
The SME Implementation Group (SMEIG) is responsible for assisting the IASB on matters related to the implementation of IFRS for SMEs (where HKFRS for Private Entities is based on). The SMEIG has seek public comments on its draft question and answers (Q&As), which are intended to serve as non-mandatory and timely guidance on specific accounting questions that are being raised with the SMEIG by users implementing the IFRS for SMEs. The draft Q&As and the Institute's invitation to comment or submission on the draft Q&As can be assessed below:
Q&A Issue 1 (2011/01)
"Use of the IFRS for SMEs in parent’s separate financial statements"
Q&A Issue 2 (2011/02)
Q&A Issue 3 (2011/03)
Q&A Issue 4 (2011/04)
Q&A (General, Issue 1) "Application of the IFRS for SMEs for financial periods ending before the IFRS for SMEs was issued"
Q&A (General, Issue 2) "Interpretation of "undue cost or effort" and "impracticable""
Q&A (Section 3, Issue 1) "Jurisdiction requires fallback to full IFRSs"
Q&A (Section 3, Issue 2) "Departure from a principle in the IFRS for SMEs"
Q&A (Section 3, Issue 3) "Prescription of the format of financial statements by local regulation"
Q&A (Section 30, Issue 1) – Recycling of cumulative exchange differences on disposal of a subsidiary
Q&A (Section 11, Issue 1) – Fallback of IFRS 9 Financial Instruments
General enquiries may be sent by e-mail to <firstname.lastname@example.org>.
Last updated: 18 September 2014