ANNOUNCEMENT - Acceptance of International Accounting Standards ("IAS") and Generally Accepted Accounting Principles in the United States of America ("US GAAP")
Regulatory
01 Apr 2001
ANNOUNCEMENT
Acceptance of International Accounting Standards ("IAS") and
Generally Accepted Accounting Principles in the United States of America
("US GAAP")
|
The Stock Exchange of Hong Kong (the Exchange) proposes to amend the Exchange Listing Rules of the Main Board:
-
to allow listed issuers and listing applicants, which have or are to have a primary listing on the Exchange, to adopt IAS; and
-
to allow overseas-incorporated listed issuers and listing applicants, which have or are to have a secondary listing on the Exchange, to adopt US GAAP.
|
Following the market consultation conducted by the Exchange, as set out in the Exchange's announcement dated 23rd October 2000, the financial reporting requirements of the Exchange Listing Rules of the Main Board will be amended to allow:-
- listed issuers and listing applicants, which have or are to have a primary listing on the Exchange, to adopt IAS; and
- overseas-incorporated listed issuers and listing applicants, which have or are to have a secondary listing on the Exchange, to adopt US GAAP.
Listed issuers and listing applicants, which have or are to have a primary listing on the Exchange and which adopt IAS, will be required to disclose and explain differences of accounting practice between IAS and generally accepted accounting principles in Hong Kong, which have a significant effect on their financial statements, and to compile a statement of the financial effect of any such material differences. This requirement will not, however, affect H-share listed issuers and listing applicants, which are already permitted under the Exchange Listing Rules of the Main Board to adopt IAS.
The above rule amendments will apply with immediate effect.