Reporting standards illustrative annual financial statements 20 audit ias plus. Investment property illustrative ifrs consolidated financial. Recognition and measurement completes another phase of the project to replace hkas 39. In the us, it operates within the property, casualty. Part 14 remedies for protection of companies or members interests part 15 dissolution by striking off or deregistration part 16 nonhong kong companies. Almost eight years after sir david tweedie, then iasb chairman, expressed his wish to.
Hkfrs 9 financial instruments is the first of a threephase project to replace hkas 39 financial instruments. Connect to and connect with success 27 recognise, as a minimum, grant date fv unless not vest. Welcome to our 20 edition of hong kong financial reporting standards illustrative annual financial statements. Hkfrs 9 financial instruments derecognition and impairment. Accounting miniseries hkfrs 9 new hedge accounting model i n the 2008 annual report, our accounting miniseries talked about hedging and how clp used derivatives to hedge its foreign currency, interest rate and energy price risks. Hong kong financial reporting standard 9 financial instruments hkfrs 9 is set out in paragraphs 1. The iasb has finally finished its longstanding project on lease accounting and released ifrs 16 leases. Hkfrs 9 is effective for annual periods beginning on or after 1 january 2018 with earlier application permitted. The decision tree on page 2 should be used to direct readers to the relevant section of guidance for the type of intercompany loans being considered. In depth a look at current financial reporting issues. Terms defined in appendix a are in italics the first time they appear in the hkfrs. Consultation on regulatory treatment of provisions under hkfrs 9 pdf file, 164. Guidance on impairment methodology and hedge accounting will be published upon completion of phases 2 and 3 of the project. Amendments to hkfrs 9 financial instruments annual improvements hkfrs 3 business combinations, hkfrs 11 joint ventures.
Hong kong financial reporting standard hkfrs hkfrs interpretation hkfrsint hong kong accounting standards hkas. On environmental protection, in order to reduce pollutant emissions from the sources, better environmental quality and turn green development into reality as early as possible, the national government has incessantly moved up the bottom line for lawful and environmentfriendly operations as well as enforced more stringent. Under ifrs 9, recognition of impairment no longer depends on a reporting. Where there are alternative applications allowed under the hkfrs for private entities, we have also presented the alternative disclosures throughout our ifs for hkfrs for pe 2011 for your reference.
Hkfrs 9 2014 also removes the volatility in profit or loss that was caused by. The appendix explains ifrs 9s general 3stage impairment model in further detail. Connect to and connect with success 27 recognise, as a minimum, grant date fv unless not. Hkfrsifrs 9 financial instruments hedge accounting and amendments to hkfrsifrs 9, hkfrsifrs 7 and hkasias 39 201401. Ifrs 9 financial instruments is the iasbs replacement of ias 39 financial instruments. The appendix explains ifrs 9 s general 3stage impairment model in further detail. Sale or contribution of assets between an investor and its associate or joint venture introduction the amendments are made to resolve the inconsistency between hkfrs 10 consolidated financial. Using a strategy that offers higher current yield and downside protection. Hkfrs for private entities issued by the hong kong institute of certified public accountants and the disclosure requirements of the hong kong companies ordinance. There are exhaustive transition disclosure requirements, examples of which can be found in the pwc manual of accounting. Illustrative ifrs consolidated financial statements investment property illustrative ifrs consolidated financial statements 2011 insurance stay informed. Retailer x applie d judgement and concluded at contract inception that the suspension.
Hong kong financial reporting standard 9 financial instruments hkfrs 9 is set out in paragraphs. Sep 23, 20 hkfrs 2 requires entity to recognise service when received. Ifrs 9 financial instruments introduces extensive new disclosure. Investment property illustrative ifrs consolidated. We share with you update from cannon street on insurance and ifrs 9 financial instruments. The seminar will also include the following specific guidance in hkfrs 15. To reinforce the impoltance of safeguarding and protecting policy.
In july 2014, the iasb issued ifrs 9s impairment requirements. Amendments to hkfrs 2 classification and measurement of sharebased payment transactions1 amendments to hkfrs 4 applying hkfrs 9 financial instruments with hkfrs 4 insurance contracts1 amendments to hkfrs 9 prepayment features with negative compensation2 amendments to hkfrs 10 and hkas 28 sale or contribution of assets between an investor and. In this article, id like to explain this methodology and illustrate it on a simple example. The hkma issued a letter dated 31 march 2017 to consult the banking industry on implementation of basel interim standard relating to the regulatory treatment of provisions under hkfrs 9.
Hkfrssifrss including hkifric interpretationsifrics and. In this part, we focus on more complex areas of financial assets derecognition and impairment. The hong kong financial reporting standards, or hkfrss for short, is a set of financial reporting standards issued by the hong kong institute of certified public accountants in hong kong it comprises a collection of standards, these include. Almost eight years after sir david tweedie, then iasb chairman, expressed his wish to fly in an. Hong kong financial reporting standards illustrative annual. Hkfrs 15 also provides requirements for the accounting for contract. Google may use other analytics cookies in addition to the ones weve listed above, so please. Updates on ifric 23 regarding putting some certainty into uncertain tax positions, ifrs 15 series article talks about accounting for licences, the demystifying ifrs 9 for corporates series focus on financial liabilities, factoring and business models, lease lab introduces changes in disclosure requirements, cannon street press and practical implications of ifric rejections related to ias 37. Hkfrs update october 2014 page 1 amendments to hkfrs 10 and hkas 28 sale or contribution of assets between an investor and its associate or joint venture introduction the amendments are made to resolve the inconsistency between hkfrs 10 consolidated financial.
This publication focuses on the latest developments in the area of hong kong international financial reporting. In some cases, hkfrs 15 requires an entity to combine contractsand account for them as one contract. Ifrs 9 and ifrs 15 are now effective 08 jan 2018 category. August 2015 ifrshkfrs news in this ifrshkfrs news, we update you on ifrs 15 ed and news from revenue trg. Oct 27, 2010 hkfrs for private entities is a financial reporting option pe. The issuance of hkfrs 9 financial instruments hedge accounting and amendments to hkfrs 9, hkfrs 7 financial instruments. Prior to processing your personal data the ifrs foundation ensures that it is entitled to do so under relevant data protection laws. Hkfrs 2 requires entity to recognise service when received estimate grant date fv and adjust when grant date is fixed 6.
As mentioned in the first part, hkfrs 9 financial instruments is divided into three. Hkfrs 9 2010 requires changes in the fair value of an entitys own debt caused. Ifrshkfrs news in this ifrshkfrs news, we update you on ifrs 15 ed and news from revenue trg. Hong kong financial reporting standards illustrative. Ifrs 7 requires disclosure of information about the significance of financial instruments to an entity, and the nature and extent of risks arising from those financial instruments, both in qualitative and quantitative terms. Deloitte hong kong publishes hkfrsifrs update newsletters at the time of release of new and revised hong kong financial reporting standards hkfrss issued by the hong kong institute of certified public accountants. Mar 21, 2016 hkfrs 9 financial instruments issued in 2014 includes a logical model for classification and measurement, a single, forwardlooking expected loss impairment model and a substantiallyreformed approach to hedge accounting. Financial instruments hedge accounting and amendments to. Hkfrs 9 2014 introduces a logical approach for the classification of financial assets, which is driven by cash flow characteristics and the business model in which an asset is held.
Definitions of other terms are given in the glossary for hong kong financial reporting standards. We share with you update from cannon street on insurance and ifrs 9 financial instruments, ifrs implementation issues, fair value measurement, ifrs 3 business combinations post. Amendments to hkfrs 9 financial instruments 2 shinewing hk cpa limited newsletter february 2018 a3. There are a number of new and revised standards that are mandatorily effective for 20, including the. Hkfrs 9 2014 classification and measurement of financial. Deloitte hong kong publishes hkfrsifrs update newsletters at the time of release of new and revised hong kong financial reporting standards hkfrss issued. Equity investments at fair value through other comprehensive income. Hong kong financial reporting standard hkfrs hkfrs interpretation hkfrs int. Foreword welcome to our 20 edition of hong kong financial reporting standards illustrative annual financial statements. Hence, the cost of obtaining the protection should. This seminar is a comprehensive presentation of the requirements of hkfrs 15 which include the 5 steps of recognising revenue, contract costs and presentation. Ifrshkfrs news the plane has landed the iasb has published its new leasing standard. Hkfrs 9 should be read in the context of its objective and the basis for conclusions, the preface to hong kong financial reporting standards and the conceptual framework for financial reporting. Such increase was mainly due to the full year operation of the wan chai restaurant and macau restaurant.
Ifrs 9 was issued in 2014 and replaces ias 39 financial instruments. Hkfrs 9 2014 also removes the volatility in profit or loss that was caused by changes in the credit risk of liabilities elected to be measured at fair value. The security on the loan affects the loss that would be realised if a. Lifelong animal protection charity limited formerly known as lamma animal protection 2. Hkfrs 9 should be read in the context of its objective and the basis for conclusions, the preface to hong kong financial reporting standards and the conceptual framework for. Hkfrs for private entities 27 october 2010 small vs. If the disclosures and presentations are required under both co and hkfrs, references are only made to hkfrs. Where there are alternative applications allowed under the hkfrs for private entities, we have also presented the alternative disclosures throughout our. Hkfrs ifrs 9 financial instruments hedge accounting and amendments to hkfrs ifrs 9, hkfrs ifrs 7 and hkasias 39 201401 hkfrssifrss including hkifric interpretationsifrics and amendments that are mandatory for the first time for 31 december 20 year ends.
Hkfrs 9 financial instruments derecognition and impairment relevant to pbe paper i. Amendments to hkfrs 10 and hkas 28 sale or contribution of. This checklist is intended as an aid in ensuring that the financial statements comply with the presentation and disclosure requirements of the hong kong financial reporting standard for private. Hkfrs 15 revenue from contracts with customers part 1 16 november 2016 lam chi yuen nelson. Amendments to hkfrs 10 and hkas 28 sale or contribution. Scpd17011601 hkfrs 9 2014 financial instruments will be mandatorily effective for the accounting period beginning on or after 1 january 2018 and will replace hkas 39 financial instruments. The date when entities would be required to apply hkfrs 9 was previously stated.
Hong kong financial reporting standard 9 financial instruments hkfrs 9 is. Specific disclosures are required in relation to transferred financial assets and a number of other matters. However, it is not clear from the rules whether an insurance broker company is required to demonstrate effective controls of its client account management. Hkfrs 9 financial instruments, or hkas 39 if hkfrs 9 not yet applied hkfrs 10 consolidated financial statements, hkfrs 11 joint. Hkfrs for pes disclosure and presentation checklist. In this issue of the financial reporting hot topics newsletter we look at the implications of the novel coronavirus covid19 outbreak from a financial instruments accounting perspective. Hkfrs 9 financial instruments including hedge accounting and amendments to hkfrs 9, hkfrs 7 and hkas 39 issued in dec. The impairment requirements in the new standard, ifrs 9 financial. Impairment of financial instruments under ifrs 9 ey. How to calculate bad debt provision under ifrs 9 ifrsbox.
Now, luckily, ifrs 9 tells us how to create bad debt provision for trade receivables and how to get these percentages. Ifrs 9 financial instruments effective 1 january 2018 ifrs 15 revenue from contracts with customers effective 1 january 2018 ifrs 16 leases effective 1 january 2019 hong kong riskbased capital rbc expected before 2020 given the increasing certainty of the new standard, the anticipated scale of its changes. We also briefly highlight some other financial instruments accounting matters that are expected to be topical for entities with a 31 december 2019 financial yearend. Hkfrs 9 financial instruments issued in 2014 includes a logical model for classification and measurement, a single, forwardlooking expected loss impairment model and a substantiallyreformed approach to hedge accounting.
The ifrs foundations logo and the ifrs for smes logo, the iasb logo, the hexagon device, eifrs, ias, iasb, ifric, ifrs, ifrs for smes, ifrs foundation, international accounting standards, international financial reporting standards, niif and sic are registered trade marks of the ifrs foundation, further details of which are available from the ifrs. Amendments to hkfrs 9 financial instruments shinewing hk. Nov 16, 2016 the requirements of hkfrs 15 apply to each contractthat has been agreed upon with a customer and meets specified criteria. It comprises a collection of standards, these include. Hkfrs 15 supersedes hkas 11 construction contracts, hkas 18 revenue and 4 other interpretations.
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