BACKGROUND
In April 2021, the Hong Kong Institute of Certified Public Accountants issued Disclosure of Accounting Policies, which
amended HKAS 1 Presentation of Financial Statements and HKFRS Practice Statement 2, the amendments targeted to:
- provide more guidance for companies to decide what accounting policy information should be disclosed
- require companies to disclose their material accounting policy information rather than their significant accounting policies
- apply the concept of materiality to accounting policy disclosures
EFFECTIVE DATE
The amendments to HKAS 1 on the Disclosure of Accounting Policies are effective for annual reporting periods beginning on or after 1 January 2023, with early application permitted. If an entity applies those amendments for an earlier period, it shall disclose that fact.
To fully understand the relevant content and potential impacts, please click the link below.
CWK Global Snapshot: Key Changes on HKAS 1 and HKFRS Practice Statement 2