Dear Members and Affiliates,

The Companies (Amendment) (No. 2) Ordinance 2018 (2018 Amendment Ordinance) was enacted on 28 November 2018 and commences operation on 1 February 2019.  PN 900 is therefore revised to reflect the following key amendments of the 2018 Amendment Ordinance:

(i) Groups which include non-Hong Kong body corporates are eligible for the reporting exemption, and hence the use of Small and Medium-sized Entity Financial Reporting Framework and Financial Reporting Standard for financial reporting if they meet the qualifying criteria for the reporting exemption; and

(ii) A partially owned subsidiary of an entity can now be exempted from preparing consolidated financial statements if all members agree in writing before the end of the financial year.

Key revisions to PN 900 as a result of the 2018 Amendment Ordinance are double underlined in the respective parts of the Practice Note.

For easy reference, members can check the marked-up version of the updated Standard at:

https://www.hkicpa.org.hk/-/media/Document/SSD/update/pn900rev19_Tracked.pdf

Regards,
Webster Ng
Chairman of Accounting and Auditing Standards
The Society of Chinese Accountants & Auditors

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