February 2006
In this newsletter, we look at the following topics:
Clear explanation of accounting estimates, policies and judgements for 2005
HKAS 1 has some specific, bold-type requirements on disclosure of accounting policies and critical estimates and judgements. Although there is no 'tick list' of what matters should be covered, preparers should provide comprehensive disclosure of accounting policies, judgements and sources of measurement uncertainty in their 2005 financial statements to enhance shareholder communication and reduce comments from regulators.
Tentative agenda decisions - Leases of Land that do not transfer Title to the Lessee
During its meetings, the International Financial Reporting Interpretations Committee (IFRIC) determines whether certain items should be tabled for discussion or not. The IFRIC was asked whether long leases of land would represent a situation when a lease of land would not normally be classified as an operating lease even though title does not transfer to the lessee. The IFRIC decided not to add this item to its agenda as, although leases of land that do not transfer title are widespread, the IFRIC has not observed, and does not expect, significant diversity in practice to arise.
Read more by downloading the pdf file below.
Note: HKFRS has converged with IFRS effective from 1 January 2005. Contents contained in this newsletter are also relevant to IFRS preparers.
Find Out More
If you would like to have more information on the above, please contact Gladys Lau, +852 2289 2976, email me.
Get Your Copy Here
Download our HKFRS News - February 2006 (pdf file, 104KB) for your reference.
Related Pages
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