In the countdown to the release of the new HKFRS for Private Entities, this Q&A paper from Mazars provides key answers that companies need to know if they are to make the transition to the new standard.
The HKFRS for Private Entities (“the new HKFRS”) is a self-contained Standard, incorporating condensed and simplified accounting principles based on full HKFRSs. It is largely based on the equivalent Standard issued by the International Accounting Standards Board. Similar to full HKFRSs, the new HKFRS enables a true and fair view to be given on the financial statements. For eligible entities, it can be used as an alternative to applying full HKFRSs.
Eligible entities include subsidiaries that form part of a public quoted group, provided that the entity or subsidiary does not have public accountability.
Key questions covered include:
- How does this HKFRS fall within HKGAAP?
- Can full HKFRS still be applied?
- Can it be applied to group financial statements?
- How will it impact a company and the financial statements?
- Why would you want to apply HKFRS for Private Entities?
- How do you make the transition to HKFRS for Private Entities?