Consolidation Audit of Group Financial Statements for Hong Kong Holding Company
Consolidation Audit and Get Your Group Financial Results
Consolidation audit of group financial statements for a holding company in Hong Kong can supply you with a much clearer picture of your overall financial status.
If your company operates in multiple countries, this is even more of a necessity. Your business must comply with the different accounting and tax laws in several jurisdictions. This applies even if your business is exempted from having to give a consolidated financial statement.
Why Choose to Consolidate Your Audits?
An audit can be beneficial for your business in Hong Kong. It helps strengthen your position with the local banks and revenue authorities. A consolidation audit of your group financial statements is essentially a report. That report verifies your accounts, taxes, profits, and financial statements. Audits are done by external auditor.
The statutory report at the end of the statutory audit must contain:
- Current year’s financial statement
- Balance sheet
- Loss and profit account
- Cash flow statements
What Are the Reporting Requirements?
Hong Kong is part of the special administrative region of China. This means the accounting standards are regulated by the Companies Ordinance (CO) and Hong Kong Financial Reporting Standards (HKFRS). In 2005, the HKFRS was fully converged with the International Financial Reporting Standards (IFRS). The IFRS is a set of global accounting standard.
In Hong Kong, some entities like small and medium enterprises and private entities can opt to apply a different set of reporting standards. Per the CO, the director must prepare the financial year statement. If you have one or more entities, you must complete your financial statements per the CO’s section 380, 381 and 383.
If you are a sole proprietor, consolidated statements are mandatory. Exemptions apply if your business is owned by a corporate body.
Should You Enlist Professional Help?
In many cases, yes. Consolidating your financial statements needs a thorough understanding of your business structure. You will also need to understand the accounting standards across the jurisdictions you’re involved in. Preparing the consolidated audit of group financial statements for a holding company in Hong Kong involves several steps. To ensure compliance at every level, 3E Accounting can offer our assistance.
3E Accounting is a one-stop solution provider. As such, we provide all your business needs under one roof. Why go to several people for help when we can do it all? For more information about our range of company incorporation services in Hong Kong, contact our friendly team today.