Entire Section

  • Accounting standards

    • 7.12

      The financial history of results and the statement of financial position included in the accountants' report must normally be drawn up in conformity with:—

      (a) Hong Kong Financial Reporting Standards (HKFRS); or
      (b) International Financial Reporting Standards (IFRS); or
      (c) China Accounting Standards for Business Enterprises (CASBE) in the case of a PRC issuer that has adopted CASBE for the preparation of its annual financial statements.

      Note: The issuer must apply one of these bodies of standards consistently and shall not change from one body of standards to the other.

    • 7.13 [Repealed]

      [Repealed 1 January 2022]

    • 7.14

      In the case of the accountants’ report for an overseas issuer, where the Exchange allows a report to be drawn up otherwise than in conformity with either of the standards referred to in rule 7.12, the report will be required to conform with financial reporting standards acceptable to the Exchange. In such cases the Exchange will normally require the report to contain a reconciliation statement setting out the financial effect of the material differences (if any) from either of the standards referred to in rule 7.12.

      Notes:
       
      1.    The suitability of alternative overseas financial reporting standards depends on whether there is any significant difference between the overseas financial reporting standards and IFRS, and whether there is any concrete proposal to converge or substantially converge the overseas financial reporting standards with IFRS.
       
      2.    A list of alternative overseas financial reporting standards that are considered comparable to HKFRS or IFRS is published on the Exchange’s website, as amended from time to time.
       
      3.    The reconciliation statement must be reviewed by the reporting accountant that reports on the relevant financial statements.
       
      4.    An overseas issuer with a dual listing that adopts one of the alternative standards referred to in Note 2 above (other than issuers incorporated in a member state of the European Union which have adopted EU-IFRS) for the preparation of its accountants’ reports must adopt HKFRS or IFRS if it de-lists from the jurisdiction of that alternative standard and must do so for any annual, interim and quarterly financial statements that fall due under the GEM Listing Rules, and are published, after the first anniversary of the date of its de-listing.
       

    • 7.15

      The accountants’ report for a PRC issuer must normally be drawn up in accordance with either of the standards referred to in rule 7.12.

    • 7.16

      Without prejudice to the provisions of rule 7.14, any significant departure from either of the accounting standards referred to in rule 7.12 must be disclosed and explained and, to the extent practicable, the financial effects of such departure quantified.

    • 7.17

      The relevant standards will normally be those current in relation to the last financial year reported on and, wherever possible, appropriate adjustments must be made to show profits for all periods in accordance with such standards.