HKFRS News 

In this newsletter, we look at the following topic:
  
Convergence between China Accounting Standards and Hong Kong Financial Reporting Standards
   
A joint declaration on the substantial convergence between the two sets of standards was signed by the China Accounting Standards Committee and the Hong Kong Institute of Certified Public Accountants as of 6 December 2007.  This convergence gives birth to work carried out to achieve mutual acceptance for listing by regulators of mainland China and Hong Kong.
      
Removal of US GAAP / IFRS reconciliation requirement by US SEC
     
From November 2007, the US regulator (SEC) allows IFRS financial statements for foreign private issuers (FPI) without any reconciliation with US GAAP.  However, this exemption will not apply to FPIs with HKFRS financial statements.
      
Business Combinations Phase II: IFRS 3 and IAS 27 amendments
        
On 10 January 2008, the IASB issued IFRS 3R and IAS 27R as part of the joint project Business Combinations Phase II (joint project with the US standard-setter).  The implementation of the new standards is postponed to 1 July 2009.  The new standards are a further development of the acquisition model and introduce the concept of full goodwill and require the mandatory adoption of economic entity approach.  Even though this project has been jointly performed between the IASB and the FASB, there are still explicit divergences.
            
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Read more by downloading our HKFRS News - Jan 2008 (pdf file, 100KB) for your reference.
  
Note: HKFRS has converged with IFRS effective from 1 January 2005.  Contents contained in this newsletter are relevant to both HKFRS preparers and IFRS preparers.