China to maintain ongoing convergence with Hong Kong international accounting standards in 2018

Source: 2018-10-11 Accounting Department of the Ministry of Finance

 

In September 2018, further to the communication and coordination between the Ministry of Finance and the Hong Kong Institute of Certified Public Accountants (the Hong Kong accounting standard-setters), it was recognised that that the revision of enterprise accounting standards carried out by the Mainland of China over recent years to be convergent in principle with the Hong Kong Accounting Standards (direct adoption of IFRS) and the International Financial Reporting Standards (IFRS).

 

Since the mutual recognition in 2007 on the equivalent of accounting standards for enterprises, both mainland of China and Hong Kong study in liaison with each other on the development of accounting standards and the progress of converging their accounting standards with the international standards each year in a timely manner in order to continuously maintain the convergence of accounting standards between the two.

 

In 2018, both parties not only made practical and detailed technical discussion on the latest progress of their accounting standards, but also further improved the working mechanism for continuous convergence of the accounting standards in the two places normalising of the daily interactions on main accounting standards items, achieving more timely and closely linked technical communication.