(i) Publication of Hong Kong Financial Reporting Standard (HKFRS) 19 Subsidiaries without Public Accountability: Disclosures
HKFRS 19 is a disclosure-only standard. It permits eligible subsidiaries to use HKFRSs with reduced disclosures. It works alongside other HKFRSs. An eligible subsidiary applies the requirements in other HKFRSs except for the disclosure requirements and instead applies the reduced disclosure requirements in HKFRS 19. HKFRS 19 will simplify reporting systems and processes for entities, reducing the costs of preparing eligible subsidiaries’ financial statements while maintaining the usefulness of those financial statements for users. HKFRS 19 is effective for annual periods beginning on or after 1 January 2027 with earlier application permitted.
(ii) The relevant part of Accounting Bulletin 4 Guidance on the Determination of Realised Profits and Losses in the Context of Distributions under the Hong Kong Companies Ordinance is updated to include a reminder for long-term insurers when applying the Accounting Bulletin. Long-term insurers are reminded that certain paragraphs in the Accounting Bulletin are no longer relevant in their determination of realised profits or losses from 1 July 2024 when the Insurance (Amendment) Ordinance 2023 became effective.
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