HKICPA issues new private entity standard

The Hong Kong Institute of Certified Public
Accountants (HKICPA) has issued a new simplified standard for
private companies.

The Hong Kong Financial Reporting Standard
(HKFRS) for Private Entities aims to ease the financial reporting
burdens of private companies.

It is available for larger private companies
to use instead of the full HKFRS.

An existing SME financial reporting standard
is available for micro private companies.

The HKICPA said the HKFRS for Private Entities
is closely aligned with IFRS for SMEs.

The new HKFRS for Private Entities was
effective on 30 April 2010.

Eligible entities are permitted to use the
standard to prepare their financial statement for prior periods
where the relevant financial statements have not been finalised and
approved.