HKFRS 18 and HKFRS 19 Updates: What Hong Kong Businesses Should Prepare For
HKICPA technical updates on HKFRS 18 and HKFRS 19 may affect financial statement presentation, disclosures and audit preparation for Hong Kong businesses.
The Hong Kong Institute of Certified Public Accountants (HKICPA) has highlighted recent technical updates including Handbook Update No. 347, HKFRS 18 Presentation and Disclosure in Financial Statements, HKFRS 19 Subsidiaries without Public Accountability: Disclosures, and related implementation resources. The newsletter also refers to upcoming technical activities and comment deadlines, including an IFRS Interpretations Committee comment deadline in July 2026.
For Hong Kong businesses, the most practical point is that financial reporting presentation and disclosure requirements are continuing to evolve. HKFRS 18 is expected to affect how companies present the statement of profit or loss, including new categories, required subtotals and disclosures around management-defined performance measures. HKFRS 19 may also be relevant to eligible subsidiaries that do not have public accountability and are preparing financial statements under the applicable standard.
Although these updates are not an immediate tax filing deadline, they are important for companies that prepare annual financial statements, undergo audits, report to banks or investors, or maintain management accounts. Finance teams may need to review chart-of-account structures, reporting templates, management performance indicators and audit timetables before the new presentation and disclosure requirements become fully effective.
Businesses should consider discussing the upcoming changes with their accounting or audit advisers early, especially where group reporting, loan covenant reporting, investor communication or management-defined performance measures are involved. Early preparation can reduce year-end pressure and help ensure that financial statements remain clear, consistent and compliant.
This article is for general information only and does not constitute accounting, audit, legal or tax advice. Companies should consider their own circumstances and seek professional advice where appropriate.
Source: HKICPA Technical News / newsletter — https://ri-plus.rimanggis.com/email/resolve/eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJhcHBfaW5zdGFuY2VfaWQiOjIwODQyNjY4NzEsImNudF9lbWFpbF9pZCI6NDI1MzQsImVkaXRpb25faWQiOm51bGwsImh0bWxfdHlwZSI6ImVtYWlsX2NvbnRlbnQiLCJleHRyYV9wYXlsb2FkIjp7ImFwcF90cmFuc2l0aW9uX2lkIjoyMTAyMDQsInJlY2lwaWVudCI6Imhvd2FpbG9rMTEyMEBob3RtYWlsLmNvbSJ9fQ.bJFNntOfwkoMpaN6qZQGEbIDGwR7FghQt5wv7q0kFU8?version=1