Does Hong Kong use IFRS or GAAP?
Hong Kong adopted IFRS 1 First-time Adoption of International Financial Reporting Standards as HKFRS 1 effective 1 January 2005. Companies that had been using HKFRS prior to 1 January 2005 did not apply HKFRS 1. Companies that have switched from another GAAP to HKFRS on or after 1 January 2005 have applied HKFRS 1.
What accounting standards are used in Hong Kong?
Since January 2005, Hong Kong has adopted a Financial Reporting Standards (FRS) framework that has been modelled on International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB).
Is Hkfrs same as IFRS?
Is HKFRS the same as IFRS? To be exact, these two are not the same. Hong Kong has adopted a Financial Reporting Standards framework (FRS) modeled on the International Financial Reporting Standards framework (IFRS) which was released by the International Accounting Standards Board (IASB).
Which regulatory body has issued accounting standard as 1 that deals with the Disclo sure of accounting policies ‘?
The Institute of Chartered Accountants of India has, in Standard issued by it, recommended the disclosure of certain accounting policies, e.g., translation policies in respect of foreign currency items.
Does Hong Kong use GAAP?
There are both mandatory and advisory sources of generally accepted accounting principles (GAAP) in Hong Kong. Mandatory sources are the following: Companies Ordinance. Legal requirements include maintenance of accounting records, content of financial statements, and audits of companies incorporated in Hong Kong.
What is GAAP in financial accounting?
Generally Accepted Accounting Principles (GAAP or US GAAP) are a collection of commonly-followed accounting rules and standards for financial reporting.
What is the main objective of GAAP?
The ultimate goal of GAAP is to ensure a company’s financial statements are complete, consistent, and comparable. This makes it easier for investors to analyze and extract useful information from the company’s financial statements, including trend data over a period of time.
What accounting standards are used in China?
Businesses operating in China are required to follow the Chinese Accounting Standards (CAS), also known as the Chinese Generally Accepted Accounting Principles. The CAS framework is based on two standards: Accounting Standards for Business Enterprises (ASBEs) Accounting Standards for Small Business Enterprises (ASSBEs)
Which institute Organisation Below is responsible for issuing the Hong Kong Financial Reporting Standards HKFRSs?
Hong Kong Financial Reporting Standards (HKFRSs). Standards and Interpretations are developed by the Financial Accounting Standards Committee of the Hong Kong Institute of Certified Public Accountants (HKICPA).
Are accrued expenses tax deductible in Hong Kong?
Accrued expenses recognised in the profit and loss account in accordance with GAAP are usually deductible if they are incurred for producing profits chargeable/subject to Hong Kong profits tax and are not capital in nature.
What are the Hong Kong profits tax treatments for common expense items?
Set out below are the Hong Kong profits tax treatments of some common expense items. Tax depreciation allowances/deductions are available for capital expenditure incurred on the construction of buildings or structures and in the provision of machinery and plant for trade or business purposes, as follows:
What are accrued expenses?
Accrued expenses are expenses that are recognized at the time they are incurred, even though cash has not yet been paid. These expenses Fixed and Variable Costs Cost is something that can be classified in several ways depending on its nature. One of the most popular methods is classification according
Are impairment losses tax deductible in Hong Kong?
Under the special rule, an impairment loss recognised in respect of a financial instrument which represents a trading debt or a debt in respect of money lent in the ordinary course of a money lending business in Hong Kong is deductible only if it is credit-impaired.