Hong Kong uses Hong Kong Financial Reporting Standards (HKFRS), which are fully converged with International Financial Reporting Standards (IFRS). While historically referred to as HK GAAP, the standards have been aligned with IFRS since 2005 for all public companies and many others.
The accounting standards of Hong Kong are known as the Hong Kong Financial Reporting Standards (HKFRS), which have been fully converged with the International Financial Reporting Standards (IFRS).
For US GAAP, revenue is recognised on a straight line basis over the relevant lease term. Under HK GAAP, investment properties are stated at valuation and are not depreciated. Changes in the values of investment properties are dealt with as movements in the investment property revaluation reserve.
What Is HK GAAP? Hong Kong Generally Accepted Accounting Principles (HK GAAP) are a set of accounting principles, standards, and procedures that companies must follow when preparing general-purpose financial statements. Publicly listed companies must also comply with Securities and Futures Commission (SFC) regulations.
When preparing annual financial reports, all FIEs are required to follow the Chinese Generally Accepted Accounting Principles (GAAP), also known as Chinese Accounting Standards (CAS).
The most notable difference between Chinese GAAP and IFRS is that in line with the Chinese Accounting Standards companies can only use the historical cost method to valuate fixed- and intangible assets, whereas IFRS allows the use of both the historical cost method and the possibility of re-evaluating the asset(s).
GAAP, on the other hand, is only used in the United States. Companies that operate in the U.S. and overseas may have more complexities in their accounting.
What Are Hong Kong Accounting Standards? Hong Kong Accounting Standards, also known as Hong Kong Financial Reporting Standards (HKFRS), are a set of rules that tell businesses how to record, report, and present their financial transactions.
Some Singapore companies use US GAAP when seeking US investment, listing on US stock exchanges, or when their parent company or major investors require US GAAP statements.
What is HK GAAP? HK GAAP stands for Hong Kong Generally Accepted Accounting Principles. These are a set of accounting principles, standards, and procedures that a company has to follow when it starts compiling its general purpose financial statements.
In Hong Kong, town gas is produced from naphtha and natural gas. Its major components are hydrogen, methane, carbon dioxide and a small amount of carbon monoxide. Its calorific value is about 17.27 MJ/m3 and its flammable limits are approximately 4.5 ～ 44.3%.
Since GAAP is primarily only used within the United States, the IFRS standards have a much wider scope. Several countries have their own accounting standards.
No Value-Added Tax (VAT): Unlike many other jurisdictions, Hong Kong does not impose VAT, Goods and Services Tax (GST), or sales tax. This simplifies the tax system and reduces the administrative burden on businesses. No Capital Gains Tax: Hong Kong does not tax capital gains.
The Common Reporting Standard (CRS) is an information-gathering and reporting requirement for financial institutions in participating countries / jurisdictions, to help fight against tax evasion and protect the integrity of tax systems. The CRS seeks to establish your tax residency.
Their subsidiaries in other countries have to follow the local standards – such as the China GAAP (Generally Accepted Accounting Principles) – while at the same time also preparing a financial statement that suit the requirements of HGB, so that a consolidated statement for the holding company can be produced.
It is one of the four sets of accounting standards listed companies in Japan can currently choose from to use to file their consolidated financial statements. The other three accounting standards are Designated IFRS, US-GAAP and Japan's Modified International Standards (JMIS).
The KASB also sets the Korean Generally Accepted Accounting Principles (K-GAAP) which are local accounting standards to be applied by all other companies. IFRS for SMEs is not adopted and is not allowed to be applied in Korea.
HK GAAP (Hong Kong Generally Accepted Accounting Principles) was previously a distinct set of standards but has since been converged with IFRS to form HKFRS.
It is characterised by low taxation, almost free port trade and a well-established international financial market. Its currency, called the Hong Kong dollar, is legally issued by three major international commercial banks, and is pegged to the US dollar.
If you are based in China you can qualify as an ICAEW Chartered Accountant as a university graduate. Many students start their journey by studying the ICAEW Certificate in Finance, Accounting and Business (ICAEW CFAB), before going on to complete the ACA qualification.
IFRS offers broader international adoption and flexibility, while US GAAP provides strict, detailed rules—useful in highly regulated environments.
When will the changes come into effect? The FRC has decided to apply the new regime for financial years beginning on or after 1 January 2015, which will require 2014 comparatives to be restated. What is FRS 102? FRS 102 will replace almost all current UK accounting standards from 2015.