In Hong Kong, the preparation of annual financial statements is primarily the responsibility of the company’s directors and management, guided by established accounting standards and regulatory requirements. Here’s an overview of the key parties involved in preparing annual financial statements:
Responsibilities and Roles:
1. Executives of the Company:
- The chiefs are eventually capable of managing the company’s financial issues and guaranteeing that precise and dependable financial statements explanations are prepared.
- They are required to work out constancy and act within the best interface of the company and its shareholders when endorsing financial statements.
2. Administration Group:
- The day-to-day obligation for planning financial statements lies with the company’s administration group, counting The Chief Financial Officer (CFO), back division, and other important faculty.
- Administration compiles financial statements data, prepares draft financial statements explanations, and guarantees compliance with bookkeeping guidelines and administrative prerequisites.
3. Outside Inspectors:
- Whereas not straightforwardly dependable for planning financial statements, outside reviewers play a basic part in confirming the precision and decency of the financial statements articulations prepared by administration.
- Outside reviewers conduct free reviews, survey inside controls, and give a review supposition on whether the financial articulations show a genuine and reasonable view of the company’s financial position and execution.
Administrative System:
1. Hong Kong Financial Reporting Standards (HKFRS):
- Financial statements in Hong Kong must comply with HKFRS, which are based on The International Financial Reporting Standards (IFRS) issued by International Accounting Standards Board (IASB).
- HKFRS sets out the bookkeeping approaches, introduction, and revelation necessities that companies must take after when planning their financial statements explanations.
2. Companies Law:
- The Companies Law in Hong Kong requires companies to prepare annual financial statements articulations that deliver a genuine and reasonable view of the company’s financial statements position and execution.
- Financial statements must be endorsed by the board of chiefs and recorded with the Companies Registry inside indicated due dates.
In rundown, whereas executives have by and large duty for the financial undertakings of the company, administration is fundamentally capable of preparing annual financial statements in agreement with HKFRS. Outside inspectors give free confirmation on the precision and unwavering quality of these financial statements explanations, guaranteeing straightforwardness and compliance with administrative benchmarks in Hong Kong.