Basic Accounting Principles You Need to Know According to the Hong Kong Companies Registry, over 1.3 million companies are currently registered in Hong Kong, yet a significant number face financial penalties, audit failures, and regulatory sanctions each year due to non-compliant or inaccurate financial reporting. Many businesses struggle with choosing the wrong accounting framework, misclassifying…
Your Guide to the Accounting Cycle in Hong Kong Before we dive into the nuts and bolts of the accounting cycle in Hong Kong, let us learn what an accounting cycle is and what processes come under it. Any company, whether small or large, must record and present its financial statements in a defined period.…
Bookkeeping and Accounting in Hong Kong: Key Differences Before we dive deep into the differences between bookkeeping and accounting in Hong Kong, let us understand what they are and why they are essential for every company. Bookkeeping and accounting are two of the most essential tasks for every business. They are also thought to be…
Understanding the Accounting Risks During COVID-19 in Hong Kong: Facts and Challenges Understanding the key accounting risks during COVID-19 can be a make-or-break for thousands of businesses. In this blog, we will learn about the major areas that accountants and companies must consider to successfully deal with these turbulent times. The coronavirus pandemic has become…
Your Guide to Understanding the Implementation of IFRS 16 in Hong Kong Before we dive into the implementation of IFRS 16 and its impact on companies operating in Hong Kong, let us understand the basics of this accounting standard. IFRS 16 (International Financial Reporting Standard 16) is the latest lease accounting standard developed by the…
What Are the Differences Between Investment Agreement and Shareholders Agreement? When a business raises money, they may need several legal agreements for their investment transactions. An investment agreement and a shareholders agreement are two broadly misunderstood legal documents. Telling the difference between the two would integrate investors’ investment activities and secure ownership rights for the…
Everything You Need to Know About Sweat Equity Shares in Hong Kong As an owner of a new business in Hong Kong, you are often caught between the challenges of limited budgets and maintaining co-founders as team members. This is always true for high-growing or pre-revenue industry: so how to keep employees on board? Some…
Important Things to Consider Before Taking Your Company Public Taking your company public means the initial public offering (IPO) of your private business. Businesses go public to raise profits and pursue their expansion, making it a publicly-traded and controlled business. Investors can also use IPOs as an escape strategy —a way to take out their…