Financial statements form the cornerstone of corporate reporting in Hong Kong. Accounting Plus Corporate Advisory Limited provides expert guidance on preparing compliant, accurate financial statements that satisfy regulatory requirements while delivering valuable business insights.
Hong Kong Financial Statement Requirements
Under the Hong Kong Companies Ordinance (Cap. 622), companies must prepare annual financial statements that:
- Present a true and fair view of the company’s financial position
- Comply with applicable reporting standards (HKFRS or SME-FRF)
- Include specific components as required by law
- Receive director approval before submission
- Undergo audit by a qualified Hong Kong CPA (unless exempt)
“Properly prepared financial statements are more than compliance documents—they’re essential management tools,” explains our financial reporting specialist.
Core Components of Hong Kong Financial Statements
A complete set of financial statements typically includes:
- Statement of Financial Position (Balance Sheet): Shows assets, liabilities, and equity at reporting date
- Statement of Comprehensive Income (Profit & Loss): Details revenue, expenses, and profit for the period
- Statement of Changes in Equity: Shows movements in shareholders’ equity
- Statement of Cash Flows: Illustrates cash inflows and outflows by activity type
- Notes to the Financial Statements: Provides essential context and additional disclosures
Applicable Reporting Standards
Hong Kong companies must follow one of two reporting frameworks:
- Hong Kong Financial Reporting Standards (HKFRS):
- Required for listed companies and larger entities
- Aligned with International Financial Reporting Standards (IFRS)
- Comprehensive disclosure requirements
- Small and Medium-sized Entity Financial Reporting Framework (SME-FRF):
- Available to qualifying private companies meeting size criteria
- Simplified reporting requirements
- Cost-effective compliance option for eligible companies
Director Responsibilities for Financial Statements
Company directors bear ultimate responsibility for financial statements, including:
- Ensuring proper accounting records are maintained
- Approving financial statements that present a true and fair view
- Providing the business review section (where applicable)
- Signing the statements to confirm approval
- Ensuring timely submission to relevant authorities
How Accounting Plus Enhances Your Financial Reporting
Our financial statement preparation services deliver:
- Full compliance with Hong Kong reporting requirements
- Clear presentation of financial information
- Thorough supporting documentation for audit purposes
- Management insights beyond basic compliance
- Timely completion to meet statutory deadlines
With Accounting Plus as your financial reporting partner, you receive meticulously prepared financial statements that satisfy regulatory requirements while providing crucial insights for informed decision-making.
For more information about our financial statement preparation services or to schedule a consultation, contact our team today.
