HKFRS for Private Entities (私營企業香港財務報告準則)

Information Centre


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.


Please refer to Section 1 of HKFRS for Private Entities and the HKICPA Questions and Answers on applicability of HKFRS for Private Entities for further guidance on the applicability of the standard.


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


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.



Training and Information Events



6 April 2016 [full]



12 May 2016 [full]


HKFRS for Private Entities Workshop (1 day

Time: 9:00am-5:00pm

Venue: HKICPA Training Centre






World Bank Webcasts on IFRS for SMEs

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
    • Example Directors' Report,  Auditor's Report and  Illustrative Financial Statements for Private Entities prepared in accordance with the HKFRS for Private Entities (with Hong Kong Companies Ordinance disclosures)




Highlights on the IFRS for SMEs / HKFRS for Private 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:


  • Replacing the term "SMEs" in IFRS for SMEs by "Private Entities"
  • Replacing the recognition and measurement principles in section 29 Income Tax of the IFRS for SMEs with the extant version of HKAS 12 Income Taxes (Note 1)
  • The section on accounting for income taxes contained in the HKFRS for Private Entities has been written to ensure no provision is required in relation to revaluation gains on investment properties to reflect the Hong Kong situation (Note 1)


 Note 1: Rationale for the above-mentioned modifications is explained in paragraphs 12-13 of Statement of Intent. 



IASB IFRS for SMEs Update Publication

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.


Training Modules by the IFRS Foundation

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).



Non-mandatory Question and Answers by the SME Implementation Group

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)
"Entities that typically have public accountability"


Q&A Issue 3 (2011/03)
"Interpretation of 'traded in a public market'"


Q&A Issue 4 (2011/04)
"Investment funds with only a few participants"

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

General enquiries may be sent by e-mail to <>.


Last updated: 18 September 2014