2014-11-10-德勤-香港财务报告准则_196页_1mb

Summary of Hong Kong Financial Reporting Standards - Illustrative Annual Financial Statements 2013

Core Content

This document provides an overview of the new and revised Hong Kong Financial Reporting Standards (HKFRSs) effective for the year ended 31 December 2013, and outlines the implications for financial reporting. It also includes illustrative financial statements prepared under these standards for a hypothetical Hong Kong listed company, Hong Kong GAAP Limited.

Main Changes in 2013

1. Mandatorily Effective Standards

• HKFRS 10 Consolidated Financial Statements:

  • Replaces previous consolidated financial statement requirements.
  • Defines control as comprising three elements: power over an investee, exposure to variable returns, and ability to affect returns through power.
  • Requires retrospective application with specific transitional provisions.
  • Entities must reassess control over entities previously not consolidated.

• HKFRS 11 Joint Arrangements:

  • Replaces HKAS 31 and HK (SIC) – Int 13.
  • Defines two types of joint arrangements: joint operations and joint ventures.
  • Joint ventures: equity method of accounting is required; proportionate consolidation is no longer allowed.
  • Joint operations: each joint operator recognises its share of assets, liabilities, revenue, and expenses.
  • Requires retrospective application with transitional provisions for entities previously using proportionate consolidation.

• HKFRS 12 Disclosure of Interests in Other Entities:

  • A new disclosure standard.
  • Requires extensive disclosures about interests in subsidiaries, joint arrangements, associates, and unconsolidated structured entities.
  • Includes information on significant judgements, composition of the reporting entity group, and associated risks.

• HKFRS 13 Fair Value Measurement:

  • Establishes a single source of guidance for fair value measurements and disclosures.
  • Defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction.
  • Requires prospective application from the beginning of the annual period in which it is initially applied.
  • Introduces the concept of 'highest and best use' for non-financial instruments and extends fair value disclosures beyond financial instruments.

• HKAS 19 Employee Benefits (as revised in 2011):

  • Changes the accounting for defined benefit plans and termination benefits.
  • Eliminates the corridor approach and accelerates the recognition of past service costs.
  • Requires all actuarial gains and losses to be immediately recognised in other comprehensive income.
  • Splits changes in defined benefit obligations and plan assets into three components: service cost, net interest, and remeasurement.

2. Standards Not Yet Mandatorily Effective

• HKFRS 9 Financial Instruments:

  • A new standard that may significantly impact financial statements.
  • Early application is allowed, and entities should consider its potential impact.

• Investment Entities Amendments:

  • Affects HKFRS 10, HKFRS 12, and HKAS 27.
  • Early application is allowed and may result in significant changes to financial reporting.

Key Information

• The illustrative financial statements are based on the assumption that Hong Kong GAAP Limited did not apply any new or revised standards before their effective dates.
• The new standards aim to align Hong Kong financial reporting with international standards and improve transparency and consistency.
• The application of these standards may lead to changes in consolidation, classification, and disclosure practices.
• Entities must carefully assess the impact of these changes and apply transitional provisions where necessary.
• The document also includes suggested disclosures that are cross-referenced to the relevant standards and interpretations.

Structure of the Document

• Section 1: Overview of new and revised standards effective for 2013 and beyond.
  • Section 1A: Accounting updates in Hong Kong.
  • Section 1B: New Companies Ordinance in Hong Kong.
  • Section 1C: Regulatory updates in Hong Kong.
• Section 2: Illustrative annual financial statements for the year ended 31 December 2013.
• Abbreviations: A table of commonly used abbreviations in the document.