Welcome to Financial Reporting News – a quarterly update from Grant Thornton. Financial Reporting News offers a summary of the more significant developments in Hong Kong Financial Reporting Standards (HKFRSs) along with insights into topical issues and comments and views from Grant Thornton.

With effect from 1 January 2005, HKFRSs were fully converged with International Financial Reporting Standards (IFRSs). The Hong Kong Institute of Certified Public Accountants (HKICPA) has committed to maintain convergence with IFRSs by aligning the timing of issuing Exposure Drafts, Standards and Interpretations in Hong Kong as closely as possible with the timing of issuing Exposure Drafts, Standards and Interpretations by the International Accounting Standards Board (IASB) and by converging the content of each HKFRS with the equivalent IFRS. Against this background, included in this newsletter is a section FRS and other news" which summarises the more significant IFRS developments following which the HKICPA is expected to issue the HKFRSs equivalents. Accordingly, you would have more time to plan your financial reporting ahead of HKICPA move. 

Our November edition leads with an article on the amendments to HKAS 39 Financial Instruments: Recognition and Measurement, which permit the reclassification of financial instruments in certain situations. We then look at some other recent changes that have taken place and some that are expected in the near future. Included in the IFRS and other news section is a high level summary of the IASB guidance paper on measuring and disclosing fair values when markets are not active.