Update Number Effective Date
Topics Update No. 50 01/04/2015 The Review of Listing Rules on disclosure of financial information with reference to the New Companies Ordinance and Hong Kong Financial Reporting Standards and Minor/Housekeeping Rule Amendments
Update No. 50
Note to subscribers for the amendments to the rules governing the listing of securities on the Growth Enterprise Market (the "GEM Listing Rules")
Update No. 50
Amendments to the GEM Listing Rules relating to disclosure of financial information with reference to the New Companies Ordinance and Hong Kong Financial Reporting Standards and minor/housekeeping Rule amendments
We enclose reprinted pages of the GEM Listing Rules and the filing instructions. The reprinted pages incorporate amendments to implement proposals in the consultation conclusions on "Review of Listing Rules on Disclosure of Financial Information with Reference to New Companies Ordinance and Hong Kong Financial Reporting Standards and Proposed Minor/Housekeeping Rule Amendments" published in February this year.
We have amended the GEM Listing Rules to:
Amendments relating to the disclosure of financial information• align the requirements for disclosure of financial information in Chapter 18 with reference to the disclosure provisions in the new Companies Ordinance (Cap. 622 of the Laws of Hong Kong);• streamline the disclosure requirements and remove duplications under Hong Kong Financial Reporting Standards;• introduce new requirements for issuers that revise their published financial reports or their result announcements include prior period adjustments due to correction of material errors;
Amendments unrelated to the disclosure of financial information• make consequential changes due to the enactment of the new Companies Ordinance;• make minor Rule amendments; and• make housekeeping amendments which involve no change in policy direction.
Coming into effect
The amendments come into effect as follows:-(a) the revised Chapter 18 in relation to disclosure of financial information in preliminary announcements of results, quarterly reports, interim reports and annual reports will be applicable for accounting periods ending on or after 31 December 2015;(b) the revised Chapter 7 in relation to disclosure of financial information in the accountants' report applicable to listing applications, reverse takeovers, major transactions and very substantial acquisitions will be applicable for accountants' reports where the latest period reported on in the accountants' report ends on or after 31 December 2015; and(c) the amendments other than those mentioned in paragraphs (a) and (b) above will take effect on 1 April 2015.
Early adoption is permitted in relation to the amendments mentioned in paragraphs (a) and (b) above. However, issuers should not adopt those amendments prior to the effective date of Part 9 "Accounts and Audit" of the new Companies Ordinance, the provisions of which are applicable for the first financial reporting year beginning on or after 3 March 2014, the commencement date of the new Companies Ordinance.
For and on behalf of
The Stock Exchange of Hong Kong Limited
Chief Regulatory Officer and Head of Listing