Avoid Common Mistakes: Hong Kong Private Company Financial Statements
Reading Time: 4 minutesRunning a business is challenging. As a business owner, you must be on top of whatever is happening inside your establishments, especially your finances. Whether or not you have relevant experience, your financial statements must be accurate and comply with regulatory standards.
A Brief Guide To Understanding Hong Kong’s Accounting Standards
Reading Time: 4 minutesHong Kong Accounting Standards are the guidelines that control how financial transactions are handled in the nation.
Accounting standards also refer to a series of guidelines that outline basic underlying concepts, clarify stipulations, and require minimal degrees of visibility to regulate how funds are to be treated.
In essence, accounting standards offer an “accurate and unbiased” summary of a firm’s monetary statements and other financial reporting.
For specific eligible SMEs, the Hong Kong Institute of Certified Public Accountants (HKICPA) has also released a Financial Reporting Standard (SME-FRS). For Hong Kong businesses that are not accountable to the general public, the HKICPA has approved the Hong Kong Financial Reporting Standard for Private Entities (HKFRS for Private Entities) from April 30, 2010.
Read through our brief guide to get a clue about how the Hong Kong accounting system works.
