Illustrative Annual Financial Statements under Hong ... - KPMG

Ilustrative Annual Financial Statements Under Hong Kong Financial Reporting Standards

December 2020

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Created on 06/07/2020 12:02:00 PM Last saved by Pang, Tony T.C. (HK/DPP)

Illustrative Annual Financial Statements under Hong Kong Financial Reporting Standards

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? 2020 KPMG, a Hong Kong partnership and a member firm of the global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved.

Contents

Abbreviations Foreword Illustrative annual report for a Hong Kong incorporated company listed on the Main Board of the Stock Exchange of Hong Kong Appendices A Index of policies illustrated in note 1 to the illustrative annual financial

statements B Recent HKFRS developments C Recent IFRIC? agenda decisions D HKFRSs in issue at 30 June 2020 E Exposure drafts in issue at 30 June 2020 F Requirements applicable to non-Hong Kong incorporated entities listed in

Hong Kong

Page 1 2 5

? 2020 KPMG, a Hong Kong partnership and a member firm of the global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved.

Abbreviations

Example of abbreviation used

CO S380(2)(a) C(DR)R.7 C(DIBD)R C(AS(PB))R Sch 5 HKICPA HKFRS HKAS HKAS 1.138(a) HK (IFRIC) HK (SIC) HK (INT) HKSA HKSA 700.17(a) PNote 600.1(22) IASB Board IFRS Standards IAS Standards IFRIC SEHK MBLRs A16(2) R17.07(1) PN5(3.2) CP

GAAP

Sources

Hong Kong Companies Ordinance (Cap. 622) Paragraph 2(a) of Section 380 of the Hong Kong Companies Ordinance (Cap. 622) Section 7 of Companies (Directors' Report) Regulation (Cap. 622D) Companies (Disclosure of Information about Benefits of Directors) Regulation (Cap. 622G) Companies (Accounting Standards (Prescribed Body)) Regulation (Cap. 622C) Schedule 5 to the Hong Kong Companies Ordinance (Cap. 622) Hong Kong Institute of Certified Public Accountants Hong Kong Financial Reporting Standard Hong Kong Accounting Standard Paragraph 138(a) of Hong Kong Accounting Standard 1 HK (IFRIC) Interpretation HK (SIC) Interpretation HK Interpretation Hong Kong Standard on Auditing Paragraph 17(a) of Hong Kong Standard on Auditing 700 Paragraph 22 of Practice Note 600.1 issued by the HKICPA International Accounting Standards Board International Financial Reporting Standard International Accounting Standard IFRS Interpretations Committee The Stock Exchange of Hong Kong Limited Main Board Listing Rules of the SEHK Paragraph 2 of Appendix 16 to the MBLRs Paragraph 1 of Rule 17.07 of the MBLRs Paragraph 3.2 of Practice Note 5 of the MBLRs Current common practice in Hong Kong or recommended by KPMG (but not specifically required or recommended in any of the various guidelines or standards) Generally accepted accounting principles

1

? 2020 KPMG, a Hong Kong partnership and a member firm of the global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved.

Foreword

This Guide has been prepared primarily to give guidance in respect of companies listed on the Main Board of The Stock Exchange of Hong Kong Limited (SEHK), which are required to prepare their annual reports in accordance with the applicable disclosure provisions of the Main Board Listing Rules of the SEHK (MBLRs).

This Guide includes:

? an illustrative annual report for the year ended 31 December 2020 issued by a fictitious Main

Board listed company, HK Listco Ltd ("HK Listco"), which includes:

- a directors' report,

- an independent auditor's report to the shareholders of the company,

- annual financial statements prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) issued by the Hong Kong Institute of Certified Public Accountants (HKICPA), accounting principles generally accepted in Hong Kong, the Hong Kong Companies Ordinance and the applicable disclosure provisions of the MBLRs, and

- a list of group properties and five year summary as required by Appendix 16 to the MBLRs, Disclosure of financial information;

? further information on recent developments in HKFRSs, including a brief overview of their

scope and requirements;

? a table of recent IFRIC? agenda decisions, including concise summaries of IFRIC technical

conclusions, starting from January 2019;

? a complete index of all HKFRSs, including their Interpretations, in issue as of 30 June 2020;

? a list of exposure drafts in issue as of 30 June 2020; and

? additional guidance on requirements applicable to non-Hong Kong incorporated entities listed in

Hong Kong.

Recent financial reporting developments

Appendix B to this Guide sets out a complete list of recent developments in HKFRSs which are first effective for annual periods beginning on or after 1 January 2020, including a brief overview of these new developments. The list is current as of 30 June 2020 and contains two tables:

? table B1 lists those amendments to HKFRSs which are required to be adopted in annual

accounting periods beginning on or after 1 January 2020; and

? table B2 lists other developments which are available for early adoption in that period, but are

not yet mandatory.

All of these developments arise from the HKICPA adopting equivalent changes made to IFRS? Standards by the International Accounting Standards Board (the IASB? Board), word for word and with the same effective dates and transitional provisions. As of 30 June 2020, there are no recent amendments to IFRS Standards which the HKICPA has yet to adopt, except for amendments to IFRS 17, Insurance and amendments to IAS 1, Classification of Liabilities as Current or Non-current,

2

? 2020 KPMG, a Hong Kong partnership and a member firm of the global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved.

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