HKFRS Plus newsletters on HKFRS for private entities
Simplified financial reporting - HKICPA provides relief for private entities
On 30 April 2010, the Hong Kong Institute of Certified Public Accountants (HKICPA) issued the Hong Kong Financial Reporting Standard for Private Entities (HKFRS for Private Entities). This new Standard, which is effective immediately, provides an additional reporting option that can be applied by private entities in place of the full set of Hong Kong Financial Reporting Standards (HKFRSs) in issue. The term 'private entities' essentially covers all entities except those that are listed, or are financial institutions, insurers or other entities that, as part of a primary business, hold and manage financial resources entrusted to them by a broad group of clients.
This newsletter provides an introduction to the HKFRS for Private Entities, explains which entities are eligible to use it, highlights its key features and explains how it measures up to full HKFRSs.
Could the HKFRS for Private Entities provide relief for subsidiaries within groups using full HKFRSs
A subsidiary that is part of a consolidated group that uses full HKFRSs or International Financial Reporting Standards (IFRSs), will be entitled to apply the HKFRS for Private Entities in its own financial statements provided that subsidiary by itself does not have public accountability. This newsletter aims to assist such subsidiaries in deciding whether to adopt the HKFRS for Private Entities.