Investor Presentaiton
Appendix B
New and amended HKFRSS
Effective
date*
1 January
2023
1 January
2023
1 January
2023
Effective
immediately
upon
issuance
Table B1:
Amendments to HKFRSS first effective for annual periods beginning 1 January 2023 or are immediately effective
upon issuance
Amendments to HKAS 1, Presentation
of financial statements and HKFRS
Practice Statement 2, Making
materiality judgements
"Disclosure of accounting policies"
Amendments to HKAS 8, Accounting
policies, changes in accounting
estimates and errors
"Definition of accounting estimates"
Amendments to HKAS 12, Income
taxes
"Deferred tax related to assets and
liabilities arising from a single
transaction"
Amendments to HKAS 12, Income
taxes
"International tax reform - Pillar Two
model rules"
The amendments seek to promote improved accounting policy disclosures
that provide useful information to investors and other primary users of the
financial statements.
Apart from clarifying that entities are required to disclose their "material"
rather than "significant" accounting policy, the amendments provide
guidance on applying the concept of materiality to accounting policy
disclosures.
The amendments provide further guidance on the distinction between
changes in accounting policies and changes in accounting estimates. Among
other things, the amendments now define accounting estimates as
"monetary amounts in financial statements that are subject to measurement
uncertainty", and clarify that the effects of a change in an input or a
measurement technique used to develop an accounting estimate are
changes in accounting estimates unless they result from the correction of
prior period errors.
Entities are required to apply the amendments prospectively to changes in
accounting estimates and changes in accounting policies occurring on or
after the beginning of the first annual reporting period in which the entity
applies the amendments.
The amendments narrow the scope of the initial recognition exemption in
paragraphs 15 and 24 of HKAS 12 such that it does not apply to transactions
that give rise to equal and offsetting temporary differences on initial
recognition, such as leases and decommissioning liabilities.
When the amendments are initially adopted, for leases and
decommissioning liabilities, the associated deferred tax assets and liabilities
are required to be recognised from the beginning of the earliest comparative
period presented, with any cumulative effect recognised as an adjustment to
retained earnings or other components of equity at that date. For all other
transactions, the amendments are applied to those transactions that occur
after the beginning of the earliest period presented.
The amendments introduce a temporary mandatory exception from
deferred tax accounting for the income tax arising from tax laws enacted or
substantively enacted to implement the Pillar Two model rules published by
the Organisation for Economic Co-operation and Development (OECD),
including tax laws that implement qualified domestic minimum top-up taxes
described in those rules. The amendments also introduce disclosures
requirements about such tax, including the estimated exposure to Pillar Two
income tax.
The recognition exception and disclosure about such exception are effective
immediately upon issuance of the amendments. The other disclosure
requirements are applicable to the annual periods beginning on or after 1
January 2023, but those disclosures are not required in interim reports for
periods ending on or before 31 December 2023.
B2
62
[End of Table B1]
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