Statutory backing to Hong Kong Financial Reporting Standards: Companies Ordinance rewrite in Hong Kong

Document Type

Journal Article


Sweet and Maxwell


Business and Law


Accounting, Finance and Economics




This article was originally published as: So, S., & Smith, M. (2009). Statutory Backing to Hong Kong Financial Reporting Standards: Companies Ordinances Rewrite in Hong Kong. Hong Kong Law Journal, 39, 175. Original available here


Hong Kong is rewriting its Companies Ordinances to enhance its competitiveness as an international business and financial centre and one of the provisions being reviewed is whether financial reporting standards in Hong Kong should be given legal backing. Contrary to the initial consultation recommendation and subsequent consultation responses, this article presents arguments that it is in the best interest of investors that the Hong Kong financial reporting standards be given statutory backing so that the quality of the reported financial statements can be assured. The 'true and fair override' provision does not provide adequate investor protection in Hong Kong where the division of the oversight responsibility for financial reporting irregularities is divided between a self-regulatory professional body HKICPA and a partially independent statutory body FRC.

Access Rights

Not open access