Hong Kong uses its own set of standards called Hong Kong Financial Reporting Standards (HKFRS), which are fully converged with International Financial Reporting Standards (IFRS). HKFRS is designed to be identical to IFRS for most practical purposes,, ensuring high comparability and credibility in financial reporting, with only minor differences to suit the local regulatory environment.
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.
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).
The HKFRS S1 and S2 are directly aligned with the IFRS S1 and IFRS S2 standards published by the International Sustainability Standards Board (ISSB). This alignment ensures that Hong Kong businesses follow a global reporting framework that is recognized by regulators, investors, and stakeholders around the world.
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.
GAAP is used primarily in the United States, while IFRS is adopted by over 195 countries and territories worldwide. Key differences include inventory valuation (LIFO vs FIFO), asset revaluation, and revenue recognition approaches.
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.
The ASBE standards are significantly converged with the International Financial Reporting Standards (IFRS) and all listed companies in China must comply with the ASBEs for the preparation of their financial statements.
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.
The Basic Law guarantees that the principles and policies regarding Hong Kong will remain unchanged for 50 years, and lays down an executive-led system headed by the Chief Executive. Hong Kong enjoys executive, legislative and independent judicial power, including that of final adjudication.
IFRS Standards are required or permitted in 169 jurisdictions across the world, including major countries and territories such as Australia, Brazil, Canada, Chile, the European Union, GCC countries, Hong Kong, India, Israel, Malaysia, Pakistan, Philippines, Russia, Singapore, South Africa, South Korea, Taiwan, and ...
HKFRS and IFRS are highly similar, with only minor differences in areas like effective dates or specific legal requirements. All companies must file annual financial statements, a directors' report, and an auditor's report that comply with the relevant HKFRS.
Hong Kong Financial Reporting Standards (HKFRSs).
Standards and Interpretations are virtually identical to their international equivalents (International Financial Reporting Standards) except for three Hong Kong Interpretations (HK-Ints) which have been developed locally by the HKICPA.
As explained in note 1.1(a) on the financial statements the Group and parent company have also applied International Financial Reporting Standards ('IFRS') adopted pursuant to Regulation (EC) No 1606/2002 as it applies in the European Union and IFRSs as issued by the International Accounting Standards Board ('IASB').
With regards to how revenue is recognized, IFRS is more general, as compared to GAAP. The latter starts by determining whether revenue has been realized or earned, and it has specific rules on how revenue is recognized across multiple industries.
Hong Kong maintains a three-tier system of deposit-taking institutions, comprising licensed banks, restricted licence banks, and deposit-taking companies. They are classified according to the amount and term of deposits accepted and the nature of the business, and are collectively known as authorized institutions.
Declaring (and rightfully so) that their main goal is to protect US investors' interests, the SEC notes that IFRS lacks consistent application, allows too much leeway with judgment, and is underdeveloped in many specific areas, for which the US GAAP has detailed and accepted guidance and established practice ( ...
Singapore has been following a path of converging Singapore Financial Reporting Standards (SFRS) with IFRS for Singapore listed companies for many years and Singapore has adopted substantially all IFRSs issued by the IASB as SFRSs, albeit at times with different effective dates and transition requirements.
Voluntary adoption of IFRSs by public companies
Since 2010, eligible listed companies in Japan have been permitted to use IFRSs as designated by the Financial Services Agency of Japan (FSA) in their consolidated financial statements, in lieu of Japanese GAAP.
Hong Kong e-Legislation (HKeL), maintained by the Department of Justice, is the official database of Hong Kong legislation. It provides free online access to current and past versions of consolidated legislation dating back to 30 June 1997, and verified PDF copies with legal status for official use.
As one of the leading international financial centres, Hong Kong is a prime location for financial services and home to many financial institutions. Hong Kong's financial markets operate under effective and transparent regulations that are in line with international standards.
Electricity & voltage
The standard electrical voltage in Hong Kong is 220 volts AC, 50Hz. Most hotel bathrooms also have outlets for 100 volts, but if not, you will need a transformer for any appliance or electrical equipment.