The Hong Kong GAAP: A Master Guide to Financial Reporting Standards 2023 (17th Edition) gives an overview of the overall regulatory framework under which all companies operate. The HKFRS, HKAS and Interpretations form the subject matter of this Guide. Each accounting standard and interpretation is covered under a separate chapter and illustrated with worked examples.


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The Hong Kong GAAP: A Master Guide to Financial Reporting Standards 2023 (17th Edition) is divided into the following sections:

  • Financial Reporting in Hong Kong;
  • HK Interpretations (‘‘HK-Int’’);
  • Hong Kong Financial Reporting Standards (‘‘HKFRS’’);
  • HK(IFRIC) Interpretations (‘‘HK(IFRIC)-Int’’);
  • Hong Kong Accounting Standards (‘‘HKAS’’); and
  • Hong Kong (SIC) Interpretations (‘‘HK(SIC)-Int’’).

The 17th Edition has been updated in light of recent changes to relevant Hong Kong Financial Reporting Standards (HKFRS), including the following:

  • Property, Plant and Equipment – Proceeds before Intended Use (Amendments to HKAS 16)
  • Onerous Contracts – Cost of Fulfilling a Contract (Amendments to HKAS 37 Provisions, Contingent Liabilities and Contingent Assets)
  • Reference to the Conceptual Framework (Amendments to HKFRS 3 Business Combinations)
  • Classification of Liabilities as Current or Non-current (Amendments to HKAS 1 Presentation of Financial Statements)
  • Definition of a Business (Amendments to HKFRS 3)
  • Definition of Material (Amendments to HKAS 1 and HKAS 8)
  • Interest Rate Benchmark Reform – Phase 1 (Amendments to HKFRS 9 and HKFRS 7)
  • Amendments to HKFRS 17 Insurance Contracts
  • HK-Int 5 (2020) Presentation of Financial Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause
  • Interest Rate Benchmark Reform – Phase 2 (Amendments to HKFRS 9, HKFRS 7 and HKFRS 16)
  • Covid-19-Related Rent Concessions beyond 30 June 2021 (2021 Amendment to HKFRS 16 Leases)
  • Amendments to HKFRS 1 (Disclosure of Accounting Policies)
  • Amendments to HKAS 8 (Definition of Accounting Estimates)
  • Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to HKAS 12 Income Taxes)
  • Non-current Liabilities with Covenants (Amendments to HKAS 1 Presentation of Financial Statements) (2022 Amendments)

In addition, the 17th Edition includes updates on Annual Improvements to HKFRS for “2018-2020” cycle.

The aim of this Master Guide is to provide an in-depth detailed explanation, analysis and interpretation of HKFRS.

A separate chapter is devoted to each of the HKFRS (including all Hong Kong Financial Reporting Standards, Hong Kong Accounting Standards (HKASs) and HK (IFRIC) Interpretations, HK Interpretations and HK (SIC) Interpretations (collectively referred to as “Interpretations”) approved by Council of HKICPA and currently in use.

The new Hong Kong GAAP: A Master Guide to Financial Reporting Standards 2023 (17th Edition) is a comprehensive, practical and up-to-date commentary on the Hong Kong Financial Reporting Standards.

It is an essential tool for accountants and professionals who are required to prepare the accounts of a business entity. This book also serves as a useful reference for auditors when analysing the financial statements of corporations.

Topics Covered:

Financial Reporting in Hong Kong

Chapter 1 Introduction

Chapter 2 The Conceptual Framework for Financial Reporting          

HK Interpretations

Chapter 3 HK-Int 5 “Presentation of Financial Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause”


Chapter 4 HKFRS 1 “First-Time Adoption of Hong Kong Financial Reporting Standards”

Chapter 5 HKFRS 2 “Share-based Payment”

Chapter 6 HKFRS 3 “Business Combinations”

Chapter 7 HKFRS 4 “Insurance Contracts”

Chapter 8 HKFRS 5 Non-current Assets Held for Sale and Discontinued Operations

Chapter 9 HKFRS 6 “Exploration for and Evaluation of Mineral Resources”

Chapter 10 HKFRS 7 “Financial Instruments: Disclosures”

Chapter 11 HKFRS 8 “Operating Segments”

Chapter 12 HKFRS 9 “Financial Instruments”

Chapter 13 HKFRS 10 “Consolidated Financial Statements”

Chapter 14 HKFRS 11 “Joint Arrangements”

Chapter 15 HKFRS 12 “Disclosure of Interests in Other Entities”

Chapter 16 HKFRS 13 “Fair Value Measurement”

Chapter 17 HKFRS 14 “Regulatory Deferral Accounts”

Chapter 18 HKFRS 15 “Revenue from Contracts with Customers”

Chapter 19 HKFRS 16 “Leases”

Chapter 20 HKFRS 17 “Insurance Contracts”

HK(IFRIC) Interpretations

Chapter 21 HK(IFRIC)-Int 1 “Changes in Existing Decommissioning, Restoration and Similar Liabilities”  

Chapter 22 HK(IFRIC)-Int 2 “Members’ Shares in Co-operative Entities and Similar Instruments”

Chapter 23 HK(IFRIC)-Int 5 “Rights to Interests arising from, Restoration and Environmental Rehabilitation Funds”       

Chapter 24 HK(IFRIC)-Int 6 “Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment”

Chapter 25 HK(IFRIC)-Int 7 “Applying the Restatement Approach under HKAS 29 Financial Reporting in Hyperinflationary Economies”

Chapter 26 HK(IFRIC)-Int 10 “Interim Financial Reporting and Impairment”    

Chapter 27 HK(IFRIC)-Int 12 “Service Concession Arrangements”

Chapter 28 HK(IFRIC)-Int 14 “HKAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction”     

Chapter 29 HK(IFRIC)-Int 16 “Hedges of a Net Investment in a Foreign Operation”         

Chapter 30 HK(IFRIC)-Int 17 “Distribution of Non-cash Assets to Owners”

Chapter 31 HK(IFRIC)-Int 19 “Extinguishing Financial Liabilities with Equity Instruments”  

Chapter 32 HK(IFRIC)-Int 20 “Stripping Costs in theProduction Phase of a Surface Mine”

Chapter 33 HK(IFRIC)-Int 21 “Levies”        

Chapter 34 HK(IFRIC)-Int 22 “Foreign Currency Transactions and Advance Consideration”

Chapter 35 HK(IFRIC)-Int 23 “Uncertainty over Income Tax Treatments”         


Chapter 36 HKAS 1 “Presentation of Financial Statements” 

Chapter 37 HKAS 2 “Inventories”

Chapter 38 HKAS 7 “Statement of Cash Flows”      

Chapter 39 HKAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”            

Chapter 40 HKAS 10 “Events after the Reporting Period”

Chapter 41 HKAS 12 “Income Taxes”        

Chapter 42 HKAS 16 “Property, Plant and Equipment”

Chapter 43 HKAS 19 “Employee Benefits”

Chapter 44 HKAS 20 “Accounting for Government Grants and Disclosure of Government Assistance”

Chapter 45 HKAS 21 “The Effects of Changes in Foreign Exchange Rates”        

Chapter 46 HKAS 23 “Borrowing Costs”

Chapter 47 HKAS 24 “Related Party Disclosures”

Chapter 48 HKAS 26 “Accounting and Reporting by Retirement Benefit Plans”

Chapter 49 HKAS 27 (2011) “Separate Financial Statements”            

Chapter 50 HKAS 28 (2011) “Investments in Associates and Joint Ventures”

Chapter 51 HKAS 29 “Financial Reporting in Hyperinflationary Economies”    

Chapter 52 HKAS 32 “Financial Instruments: Presentation” 

Chapter 53 HKAS 33 “Earnings per Share”

Chapter 54 HKAS 34 “Interim Financial Reporting”

Chapter 55 HKAS 36 “Impairment of Assets”          

Chapter 56 HKAS 37 “Provisions, Contingent Liabilities and Contingent Assets”

Chapter 57 HKAS 38 “Intangible Assets”  

Chapter 58 HKAS 40 “Investment Property”           

Chapter 59 HKAS 41 “Agriculture”            

HK(SIC) Interpretations

Chapter 60 HK(SIC)-Int 10 “Government Assistance – No Specific Relation to Operating Activities”    

Chapter 61 HK(SIC)-Int 25 “Income Taxes – Changes in the Tax Status of an Enterprise or its Shareholders

Chapter 62 HK(SIC)-Int 29 “Service Concession Arrangements: Disclosures”   

Chapter 63 HK(SIC)-Int 32 “Intangible Assets – Web Site Costs”         

Annual Improvements

Chapter 64 Annual Improvements to HKFRSs 2018-2020 Cycle

About the Author


Mr PATRICK P H Ng (BA (HONS), M PHIL, FCPA, FCCA, Hon HKAT) had taught at Technical College / Hong Kong Institute of Vocational Education (Vocational Training Council) and City University of Hong Kong for more than thirty-two years.

Mr Ng received a Bachelor of Arts Degree with First Class Honours (in Accounting, Finance & Economics) from University of Essex, UK, and a Master of Philosophy (in Finance) from King’s College, University of Cambridge, UK. He is a Fellow of the Hong Kong Institute of Certified Public Accountants (HKICPA, formerly HKSA), a Fellow of the Association of Chartered Certified Accountants (ACCA), a Fellow of the Hong Kong Society of Registered Financial Planners and an Honorary Hong Kong Accounting Technician. He had served as a Board Member of Hong Kong Institute of Accredited Accounting Technicians (HKIAAT, formerly HKAAT) from 1999 to 2003, the Editor of the Members’ Journal of ACCA (Hong Kong) from 1997 to 2005 and 2007 to 2009, and the Chief Editor of Accounting Personnel, the Journal of HKIAAT, from 1996 to 2006.

Mr Ng is an accomplished and well-respected writer in the field of accounting and financial reporting. He has authored/co-authored twelve accounting textbooks entitled ‘‘Financial Accounting for Hong Kong’’, ‘‘HKIAAT Paper 1 Financial Accounting’’, ‘‘Introduction to Financial Accounting in Hong Kong’’, “Basic Cost Accounting in Hong Kong”, “New Senior Secondary BAFS Frank Woods’ Accounting Module Exam Practice 1”, ‘‘Financial Accounting’’, ‘‘Advanced Accounting’’, ‘‘HKAL – Principles of Accounts (Volume 1 & 2)’’, ‘‘HKIAAT Paper 7 Financial Accounting’’, “HKIAAT PBE Paper 1 “Financial Accounting”, ‘‘Examination Guide to ACCA Paper 13 (H) Financial Reporting Environment (Hong Kong)’’, ‘‘Accounting in Hong Kong: Regulatory Framework and Advanced Accounting Practice’’ and ‘‘Corporate Accounting – Business Combinations in Hong Kong’’. Mr Ng has published in total more than 65 articles on financial reporting and audit assurance disciplines, in international refereed journals, professional journals and refereed conference proceedings. He taught the Professional Stage of ACCA Examination Courses on Financial Reporting and Advanced Corporate Reporting Papers with the City University of Hong Kong for more than 11 years.

Mr Ng lent his many years of practical experience in accounting and auditing disciplines and substantial teaching and research experience to the Wolters Kluwer’s loose-leaf publication ‘‘Hong Kong GAAP – A Practical Guide to Accounting Standards’’ in 1999. It was then published as a bound book and retitled to “Hong Kong Master GAAP Guide, then “Hong Kong GAAP: A Master Guide to Financial Reporting Standards, which goes into the 17th Edition in 2023.

With Chinese Accounting Standards (CAS) converging with International Financial Reporting Standards (IFRS), Mr Ng has extended his international knowledge of Financial Reporting Standards to another Wolters Kluwer publication, ‘‘China Master GAAP Guide’’, which was launched in 2004 and goes into the 12th Edition in 2023.

Mr Ng is also the Editor for “Hong Kong Financial Reporting Standards for SMEs (2022) Edition” which provides guidance on the application of financial reporting requirements applicable to non-listed companies and small and medium-sized entities.


Associate Professor Ng Eng Juan graduated with B Ec (first class honours) from University Malaya and MBA from University of Southern California. He is a fellow of the Institute of Certified Public Accountants of Singapore (ICPAS), the Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Accountants (MIA). He has also passed the uniform examinations of the American Institute of Certified Public Accountants (AICPA).

Prof Ng has had many years of working experience in an international public accounting firm. He is currently with the Nanyang Business School of the Nanyang Technological University, teaching financial accounting courses in the B Acc and MBA programmes. Over the years, he has won several teaching awards, including ‘‘Teacher of the Year’’.

Prof Ng is actively involved in the accounting profession. He has been a member of the Accounting Standards Committee and China Committee of ICPAS and the Technical Panel of MIA for many years. He currently serves as an external examiner/advisor to several accounting professional and degree programs in Singapore, UK and China. He also provides consultancy services to public accounting firms and other organisations and conducts regular executive development programmes for accountants and managers. He was awarded ‘‘CPE Trainer of the Year’’ by the ICPAS in 2006.

Prof Ng’s current research interests are in the area of accounting standards and practices. Among his publications are more than 20 professional books including ‘‘Consolidated Accounts’’, ‘‘Cash Flow Statements’’, ‘‘Accounting for Income Taxes’’, ‘‘Consolidated Financial Statements (Singapore)’’, ‘‘Accounting Disclosure Handbook (Singapore)’’, ‘‘Singapore GAAP’’, ‘‘Malaysia GAAP’’ and ‘‘A Practical Guide to Financial Reporting Standards (Malaysia).