The HKICPA has recently issued its third omnibus standard Annual Improvements to HKFRSs 2009-2011, to maintain convergence of HKFRS with IFRS. The improvements are identical to those set out in the equivalent standard issued by the IASB in May 2012, with the same effective date and transitional provisions.
This cycle of annual improvements contains amendments to five standards with consequential amendments to other standards and interpretations, all of which are effective for annual periods beginning on or after 1 January 2013 with earlier application permitted.
The amendments address the following six issues:
· repeated application of HKFRS 1;
· borrowing costs relating to qualifying assets with capitalisation commencement date before date of transition to HKFRSs;
· clarification of requirements for comparative information in HKAS 1;
· classification of servicing equipment;
· tax effect of distribution to holders of equity instruments; and
· segment information for total assets and liabilities in interim financial reports.
Further details of the amendments can be found in our The Balancing Items publication (Issue 2). Copies of the publication, issued by KPMG International, are available on our website, www.kpmg.com/cn, by following the link in the information column to the right. If you would like further assistance on the matters discussed, please talk with your usual KPMG contact.
KPMG China's Financial Reporting Updates are produced regularly to highlight developments in Hong Kong Financial Reporting Standards. If at any time you would like further information on the matters discussed in the Updates, please talk to your usual KPMG contact. An archive of recent issues of Financial Reporting Update can be found at http://www.kpmg.com/cn/en/IssuesAndInsights/