As at 1 July 2008

Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008TitleIASBequivalentDifferences inTransitionalProvisionsDifferences inEffective DatesOther Textual DifferencesFRAMEWORKFramework for the Preparation andPresentation of FinancialStatementsIASBFrameworkN/AN/AMinor textual differences – nopractical effect.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKFRS No.TitleIFRS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKFRS 1First-time Adoption of Hong KongFinancial Reporting StandardsIFRS 1NoNo, except para47F specifiesthat paras 23and 27 to 30 ofHKFRS 1 (IFRS1) are effectivefor AP beginningon or after 1January 2005 (1January 2004).Minor textual differences – nopractical effect.HKFRS 2Share-based PaymentIFRS 2NoNoNoHKFRS 3Business CombinationsIFRS 3NoExcept forlimitedretrospectiveapplication asper para 85,HKFRS 3 (IFRS3) is effective forbusinesscombinations forwhich theagreement dateis on or after 1January 2005(31 March2004).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKFRS No.TitleIFRS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKFRS 3RevisedBusiness CombinationsIFRS 3 Revised NoNoNoHKFRS 4Insurance ContractsIFRS 4NoNoNoHKFRS 5Non-current Assets Held for Sale andDiscontinued OperationsIFRS 5NoNoNoHKFRS 6Exploration for and Evaluation ofMineral ResourcesIFRS 6NoNoNoHKFRS 7Financial Instruments: DisclosuresIFRS 7NoNoNoHKFRS 8Operating SegmentsIFRS 8NoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 1Presentation of Financial StatementsIAS 1NoNo*Minor textual differences –explanation of legalrequirements which do notgive rise to differences.HKAS 1RevisedPresentation of Financial StatementsIAS 1 Revised NoNoMinor textual differences –explanation of legalrequirements which do notgive rise to differences.HKAS 2InventoriesIAS 2NoNo*NoHKAS 7Cash Flow StatementsIAS 7NoHKAS 7 (IFRS 7)

is effective forAP beginning onor after 1January 2005 (1January 1994).NoHKAS 8Accounting Policies, Changes inAccounting Estimates and ErrorsIAS 8NoNo*Minor textual differences – nopractical effect.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 10Events after the Balance Sheet Date IAS 10NoNo*Minor textual differences –explanation of legalrequirements which do notgive rise to differences.HKAS 11Construction ContractsIAS 11NoHKAS 11* (IAS11) is effectivefor AP beginningon or after 1January 2005 (1January 1995).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 12Income TaxesIAS 12NoHKAS 12* (IAS12) is effectivefor AP beginningon or after 1January 2005 (1January 1998with certainamendmentseffective for APbeginning on orafter 1 January2001).The explanatory guidanceand illustrative examples setout in the boxes within thebody of HKAS 12 containmaterial that is expanded onthat in IAS 12 and consideredto be more user-friendly.HKAS 14Segment ReportingIAS 14NoHKAS 14* (IAS14) is effectivefor AP beginningon or after 1January 2005 (1July 1998).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 16Property, Plant and EquipmentIAS 16HKAS 16 has thefollowing additionaltransition provisions.

1.Para 80Aexempting certainentities that carriedtheir PPE atrevalued amountsbefore 30September 1995and have notrevalued since thatdate from makingregular revaluation.

2.Para 80B allowingthose not-for-profitentities thatpreviously tookadvantage of theexemption underSSAP 17 to deemthe carrying amountof an item of PPEimmediately beforeapplying HKAS 16on its effective date(or earlier) as thecost of that item.No*NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 17LeasesIAS 17NoNo*NoHKAS 18RevenueIAS 18NoHKAS 18* (IAS18) is effectivefor AP beginningon or after 1January 2005 (1January 1995).NoHKAS 19Employee BenefitsIAS 19HKAS 19 has anadditional paragraph153A specifying thatthe transitionalprovisions set out inparagraphs 154 to 156of HKAS 19 apply onlywhen an entity had notpreviously appliedSSAP 34 (May 2003).HKAS 19* (IAS19) is effectivefor AP beginningon or after 1January 2005 (1January 1999with certainamendmentscommencinglater).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 20Accounting for Government Grantsand Disclosure of GovernmentAssistanceIAS 20IAS 20 has anadditional transitionalprovision (para 40)

allowing an entityadopting IAS 20 for thefirst time to apply theaccounting provisionsof IAS 20 only to grantsor portions of grantsbecoming receivable orrepayable after theeffective date of IAS

20.HKAS 20* (IAS20) is effectivefor AP beginningon or after 1January 2005 (1January 1984).NoHKAS 21The Effects of Changes in ForeignExchange RatesIAS 21NoNo*NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 23Borrowing CostsIAS 23HKAS 23 has anadditional transitionalprovision (para 30)

allowing entities thatexpense all borrowingcosts to apply newpolicy prospectively.IAS 23 has anadditional transitionalprovision (para 30)

permitting entities thatexpensed borrowingcosts to capitalizeborrowing costsprospectively.HKAS 23*(IAS23) is effectivefor AP beginningon or after 1January 2005 (1January 1995).NoHKAS 23RevisedBorrowing CostsIAS 23RevisedNoNoNoHKAS 24Related Party DisclosuresIAS 24NoNo*NoHKAS 26Accounting and Reporting byRetirement Benefit PlansIAS 26NoHKAS 26 (IAS26) is effectivefor AP beginningon or after 1January 2005 (1January 1988).HKAS 26 has an appendixgiving guidance on preparingfinancial statements of MPFschemes and ORSOschemes in accordance withthe standard.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 27Consolidated and Separate FinancialStatementsIAS 27NoNo*Minor textual differences –explanation of legalrequirements which do notgive rise to differences.HKAS 27RevisedConsolidated and Separate FinancialStatementsIAS 27 Revised NoNoMinor textual differences –explanation of legalrequirements which do notgive rise to differences.HKAS 28Investments in AssociatesIAS 28NoNo*NoHKAS 29Financial Reporting inHyperinflationary EconomiesIAS 29NoHKAS 29 (IAS29) is effectivefor AP beginningon or after 1January 2005 (1January 1990).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 31Interests in Joint VenturesIAS 31NoNo*NoHKAS 32Financial Instruments: PresentationIAS 32HKAS 32 has anadditional transitionalprovision (para 97)

allowing an entity not topresent comparativeinformation if suchinformation is notavailable.NoNoHKAS 33Earnings per ShareIAS 33NoNo*NoHKAS 34Interim Financial ReportingIAS 34NoHKAS 34* (IAS34) is effectivefor AP beginningon or after 1January 2005 (1January 1999).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 36Impairment of AssetsIAS 36HKAS 36 (IAS 36) para139 specifies that anentity shall apply HKAS36 (IAS 36)

(a) to goodwill andintangible assetsacquired inbusinesscombinations forwhich theagreement date ison or after 1January 2005 (31March 2004); and(b) to all other assetsprospectively fromthe beginning ofthe first annualperiod beginningon or after 1January 2005 (31March 2004).HKAS 36 (IAS36) is effectivefor AP beginningon or after 1January 2005(31 March2004).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 37Provisions, Contingent Liabilities andContingent AssetsIAS 37IAS 37 has anadditional transitionalprovision (para 93)

allowing an entity not toadjust opening balanceof retained earnings forthe earliest periodpresented and torestate comparativeinformation for theperiod in which IAS 37is first adopted.HKAS 37* (IAS37) is effectivefor AP beginningon or after 1January 2005 (1July 1999).HKAS 37 contains additionalHong Kong examples 3A, 8A,12 and 13 in Appendix C. Nocomparable examples areincluded in Appendix C to IAS37 – no practical effect.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 38Intangible AssetsIAS 38HKAS 38 (IAS 38) para130 specifies that anentity shall apply HKAS38 (IAS 38):

(a) to the accountingfor intangibleassets acquired inbusinesscombinations forwhich theagreement date ison or after 1January 2005 (31March 2004); and(b) to the accountingfor all otherintangible assetsprospectivelyfrom thebeginning of thefirst annual periodbeginning on orafter 1 January2005 (31 March2004).HKAS 36 (IAS36) is effectivefor AP beginningon or after 1January 2005(31 March2004).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 39Financial Instruments: Recognitionand MeasurementIAS 39HKAS 39 does notpermit retrospectiveapplication except incertain limitedcircumstanceswhereas IAS 39generally requiresretrospectiveapplication.Accordingly, thetransitional provisionsin HKAS 39 aredifferent from those inIAS 39. For details,please refer to theStandards.NoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 40Investment PropertyIAS 40HKAS 40 has thefollowing additionaltransitional provisions:

HKAS 40 paras 80A onfair value modelPara 80A of HKAS 40requires an entity thathas previously appliedSSAP 13 (2000) fornon-leaseholdinvestment propertiesand chooses to use thefair value model toreflect the effect ofapplying HKAS 40 onits effective date (orearlier) as anadjustment to theopening balance ofretained earnings forthe period in whichHKAS 40 is firstapplied.No*NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesPara 80A alsoencourages the entityto adjust thecomparativeinformation if the entityhas previouslydisclosed publicly fairvalue of thoseproperties but requiresthe entity to disclosethe fact if otherwise.HKAS 40 paras 83Aand 83B on cost modelParas 83A and 83B ofHKAS 40 allow anentity to take thecarrying amount of theinvestment propertyunder SSAP 13 (2000)

as the deemed cost onthe date that HKAS 40is first applied. Anyadjustments, includingComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual Differencesthe reclassification ofany amount previouslyheld in revaluationreserve, are to bemade to the openingbalance of retainedearnings. Depreciationon deemed costcommences from theopening balance sheetdate.HKAS 41AgricultureIAS 41NoHKAS 41* (IAS41) is effectivefor AP beginningon or after 1January 2005 (1January 2003).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HK(IFRIC)-IntNo.TitleIFRIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK(IFRIC)-Int 1 Changes in ExistingDecommissioning, Restoration andSimilar LiabilitiesIFRIC 1NoNoMinor textual differences – nopractical effect.HK(IFRIC)-Int 2 Members’ Shares in Co-operativeEntities and Similar InstrumentsIFRIC 2NoNoNoHK(IFRIC)-Int 4 Determining whether an Arrangementcontains a LeaseIFRIC 4NoNoNoHK(IFRIC)-Int 5 Rights to Interests arising fromDecommissioning, Restoration andEnvironmental Rehabilitation FundsIFRIC 5NoNoNoHK(IFRIC)-Int 6 Liabilities arising from Participating ina Specific Market – Waste Electricaland Electronic EquipmentIFRIC 6NoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HK(IFRIC)-Int No. TitleIFRIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK(IFRIC)-Int 7Applying the RestatementApproach under HKAS 29Financial Reporting inHyperinflationary EconomiesIFRIC 7NoNoNoHK(IFRIC)-Int 8Scope of HKFRS 2IFRIC 8NoNoNoHK(IFRIC)-Int 9Reassessment of EmbeddedDerivativesIFRIC 9NoNoNoHK(IFRIC)-Int 10Interim Financial Reporting andImpairmentIFRIC 10NoNoNoHK(IFRIC)-Int 11HKFRS 2 – Group and TreasuryShare TransactionsIFRIC 11NoNoNoHK(IFRIC)-Int 12Service Concession ArrangementsIFRIC 12NoNoNoHK(IFRIC)-Int 13Customer Loyalty ProgrammesIFRIC 13NoNoNoHK(IFRIC)-Int 14HKAS 19 – The Limit on a DefinedBenefit Asset, Minimum FundingRequirements and theirInteractionIFRIC 14NoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HK(SIC)-Int No. TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK(SIC)-Int 10Government Assistance – No SpecificRelation to Operating ActivitiesSIC-10NoHKAS-Int 10*(SIC 10) iseffective for APbeginning on orafter 1 January2005 (1 August1998).NoHK(SIC)-Int 12Consolidation – Special PurposeEntitiesSIC-12NoHKAS-Int 12*(SIC 12) iseffective for APbeginning on orafter 1 January2005 (1 July1999).NoHK(SIC)-Int 13Jointly Controlled Entities –Non-Monetary Contributions byVenturersSIC-13NoHKAS-Int 13*(SIC 13) iseffective for APbeginning on orafter 1 January2005 (1 January1999).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HK(SIC)-Int No. TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK(SIC)-Int 15Operating Leases – IncentivesSIC-15NoHKAS-Int 15*(SIC 15) iseffective for APbeginning on orafter 1 January2005 (1 January1999).NoHK(SIC)-Int 21Income Taxes – Recovery ofRevalued Non-Depreciable AssetsSIC-21NoHKAS-Int 21*(SIC 21) iseffective for APbeginning on orafter 1 January2005 (on 15 July2000).NoHK(SIC)-Int 25Income Taxes – Changes in the TaxStatus of an Enterprise or itsShareholdersSIC-25NoHKAS-Int 25*(SIC 25) iseffective for APbeginning on orafter 1 January2005 (on 15 July2000).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HK(SIC)-Int No. TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK(SIC)-Int 27Evaluating the Substance ofTransactions Involving the LegalForm of a LeaseSIC-27NoHKAS-Int 27*(SIC 27) iseffective for APbeginning on orafter 1 January2005 (on 31December2001).NoHK(SIC)-Int 29Service Concession Arrangements:

DisclosuresSIC-29NoHKAS-Int 29*(SIC 29) iseffective for APbeginning on orafter 1 January2005 (on 31December2001).NoHK(SIC)-Int 31Revenue – Barter TransactionsInvolving Advertising ServicesSIC-31NoHKAS-Int 31*(SIC 31) iseffective for APbeginning on orafter 1 January2005 (on 31December2001).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HK(SIC)-Int No. TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK(SIC)-Int 32Intangible Assets – Web Site CostsSIC-32NoHKAS-Int 32*(SIC 32) iseffective for APbeginning on orafter 1 January2005 (on 25March 2002).NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 July 2008HK-Int No.TitleInternational -Int No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK-Int 1The Appropriate Accounting Policiesfor Infrastructure FacilitiesNo equivalentinterpretationunder IFRS.N/AN/AN/AHK-Int 3Revenue – Pre-completion Contractsfor the Sale of DevelopmentPropertiesNo equivalentinterpretationunder IFRS.N/AN/AN/AHK-Int 4Leases – Determination of the Lengthof Lease Term in respect of HongKong Land LeasesNo equivalentinterpretationunder IFRS.N/AN/AN/ANotes* These Hong Kong pronouncements might have additional wording or paragraph(s) specifying that:

(i)

if an entity decides to early adopt a Standard, the entity is not required to apply all the Standards effective for the same date for that period;

(ii)

if an entity decides to early adopt a Standard, the entity is required to apply the relevant Interpretation for that period;

(iii)

early adoption is encouraged; or(iv)

the previous version of the Standard is withdrawn.SIC-7 Introduction of the Euro is not adopted in Hong KongThe paragraph numbers in HKFRSs generally correspond to the paragraph numbers in IFRSs.