As at 1 January 2007

Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007TitleIASBequivalentDifferences inTransitionalProvisionsDifferences inEffective DatesOther Textual DifferencesFRAMEWORKFramework for the Preparation andPresentation of FinancialStatementsIASBFrameworkN/AN/APara 1The IASB Frameworkparagraph 1 states that theFramework’s purpose includesassisting the Board of IASC topromote harmonisation ofregulations, accountingstandards and procedures andassisting nationalstandard-setting bodies todevelop national statements.The corresponding paragraphin the HK Framework does notcontain such a statement.Paras 1, 2, 3, 40 and 52The HK Framework containsreference to “AccountingGuidelines” issued by theCouncil of HKICPA. The IASBFramework does not containsuch references.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007TitleIASBequivalentDifferences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesPara 101The IASB Frameworkcontains a statement thatsome enterprises use thecurrent cost basis as aresponse to the inability of thehistorical cost accountingmodel to deal with the effectsof changing prices ofnon-monetary assets. The HKFramework does not containsuch a statement.Para 110The IASB Framework refersto the accounting modelprescribed for thoseenterprises reporting in thecurrency of ahyper-inflationary economyas an example of anaccounting model applying inexceptional circumstances.The HK Framework does notcontain such an example.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKFRS No.TitleIFRS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKFRS 1#First-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).Paras 3(a) and 4IFRS 1 contains references to“national” requirementswhereas HKFRS 1 usesreferences to “otheraccounting” requirements.Para 47IFRS 1 requires disclosure ofthe fact that an entity appliesIFRS 1 instead of SIC-8First-time Application of IASsas the Primary Basis ofAccounting before theeffective date of IFRS 1.HKFRS 1 does not have sucha requirement because thereis no interpretation equivalentto SIC-8 in Hong Kong.HKFRSs 1 & 6AmendmentsFirst-time Adoption of Hong KongFinancial Reporting Standards andExploration for and Evaluation ofMineral ResourcesIFRS 1 & 6AmendmentsNoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKFRS No.TitleIFRS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKFRS 2Share-based PaymentIFRS 2NoNoNoHKFRS 3#Business CombinationsIFRS 3HKFRS 3 has anadditional paragraph85A dealing with thetransitional provisionsfor the specialprovisions for HongKong incorporatedcompanies, whichcease to apply for APbeginning on or after 1January 2006 as aconsequence of theimplementation of theCompanies(Amendment)

Ordinance 2005.Except forlimitedretrospectiveapplication asper para 85,HKFRS 3 (IFRS3) is effective forbusinesscombinations forwhich theagreement dateis on or after 1January 2005(31 March2004).HKFRS 3 has paragraphs 6A,6B, 23A and 77A dealing withspecial provisions for HongKong incorporatedcompanies. These provisionsrecognise the legalconstraints that prevent aHong Kong incorporatedcompany from consolidatingin its group accounts asubsidiary that does not meetthe legal definition ofsubsidiary prior to theimplementation of theCompanies (Amendment)

Ordinance 2005.The special provisions shouldcease to be applied forannual periods beginning onor after 1 January 2006 as aconsequence of theCompanies (Amendment)

Ordinance 2005. Thereafter,the application of HKFRS 3has the same effect as IFRS

3.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKFRS No.TitleIFRS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKFRS 4#Insurance ContractsIFRS 4NoNoNoHKFRS 5Non-current Assets Held for Sale andDiscontinued OperationsIFRS 5NoNoNoHKFRS 6Exploration for and Evaluation ofMineral ResourcesIFRS 6NoNoNoHKFRS 7Financial Instruments: DisclosuresIFRS 7NoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 1#Presentation of Financial StatementsIAS 1NoNo*Paras 13-22IAS 1 uses the terms “fairpresentation” and “presentfairly” whereas HKAS 1 usesthe terms “true and fair view”

and “give a true and fair view”.Additional footnotes in HKAS 1HKAS 1 has footnotes in:

Para 3:

To provide an example oftailored reports - accountsprepared by certain privatecompanies taking advantage ofthe exemptions granted bysection 141D.Para 81:

To specify that HK incorporatedcompanies are required todisclose turnover and themethod by which it is arrived at.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesParas 95 and 125(a):

To specify that HKincorporated companies arerequired to disclose theaggregate amount ofdividends paid and proposedin profit and loss account andthe proposed dividend inbalance sheet.Additional appendices inHKAS 1HKAS 1 has additionalappendices(a) to set out the legalrequirements in HongKong that are pertinent toeach Hong KongAccounting Standard orHong Kong FinancialReporting Standard; and(b) to provide an example onthe disclosure ofproposed dividend.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 1AmendmentCapital DisclosuresIAS 1AmendmentNoNoNoHKAS 2InventoriesIAS 2NoNo*NoHKAS 7#Cash 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*HKAS 8 para 12 has afootnote specifying that in thecontext of Hong Kong, otheraccounting literature includesAccounting Guidelines andAccounting Bulletins.HKAS 10Events after the Balance Sheet Date IAS 10NoNo*HKAS 10 para 13 has afootnote referring to thefootnotes to paras 95 and125(a) of HKAS 1 and theexample on the disclosure ofproposed dividend attachedto HKAS 1.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 11Construction ContractsIAS 11NoHKAS 11* (IAS11) is effectivefor AP beginningon or after 1January 2005 (1January 1995).NoHKAS 12#Income 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 14#Segment 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 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 16#Property, 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 entities thathave previouslytaken advantage ofthe exemptionunder SSAP 17 todeem the carryingamount of an itemof PPE immediatelybefore applyingHKAS 16 on itseffective date (orearlier) as the costof that item.No*NoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 17#LeasesIAS 17NoNo*NoHKAS 18#RevenueIAS 18NoHKAS 18* (IAS18) is effectivefor AP beginningon or after 1January 2005 (1January 1995).NoHKAS 19#Employee 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).NoHKAS 19AmendmentEmployee Benefits - Actuarial Gainsand Losses, Group Plans andDisclosuresIAS 19AmendmentNoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 20#Accounting 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*NoHKAS 21AmendmentThe Effects of Changes in ForeignExchange Rates – Net Investmentin a Foreign OperationIAS 21AmendmentNoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 23#Borrowing 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 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.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 27#Consolidated and Separate FinancialStatementsIAS 27HKAS 27 hasparagraph 43B dealingwith the transitionalprovisions for thespecial provisions forHong Kongincorporatedcompanies, whichcease to apply for APbeginning on or after 1January 2006 as aconsequence of theimplementation of theCompanies(Amendment)

Ordinance 2005.No*HKAS 27 has paragraphs3A-3C, 21A, 21B and 42Adealing with specialprovisions for Hong Kongincorporated companies.These provisions recognisethe legal constraints thatprevent a Hong Kongincorporated company fromconsolidating in its groupaccounts a subsidiary thatdoes not meet the legaldefinition of subsidiary prior tothe implementation of theCompanies (Amendment)

Ordinance 2005.The special provisions shouldcease to be applied forannual periods beginning onor after 1 January 2006 as aconsequence of theCompanies (Amendment)

Ordinance 2005. Thereafter,the application of HKAS 27has the same effect as IAS

27.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 27 para 10 has afootnote specifying thatsection 124(2) of the HKCompanies Ordinancepermits a holding companynot to prepare group accountsif the company is awholly-owned subsidiary ofanother company at the endof its financial year and,accordingly, a Hong Kongincorporated parent companycan only take advantage ofthe exemption for notpreparing consolidatedaccounts if it also satisfies theexemption allowed undersection 124(2).HKAS 28#Investments 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 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 30Disclosures in the FinancialStatements of Banks and SimilarFinancial Institutions (will bewithdrawn when HKFRS 7becomes effective)

IAS 30NoHKAS 30 (IAS30) is effectivefor AP beginningon or after 1January 2005 (1January 1991).NoHKAS 31#Interests in Joint VenturesIAS 31NoNo*NoHKAS 32#Financial Instruments: PresentationIAS 32HKAS 32 has anadditional transitionalprovision (para 97)

allowing an entity not topresent comparativeinformation if suchinformation is notavailable.NoNoHKAS 33#Earnings Per ShareIAS 33NoNo*NoHKAS 34#Interim 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 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 36#Impairment 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 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 37#Provisions, 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 IAS

37.Comparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 38#Intangible 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 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 39#Financial 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.HKAS 39 doesnot permit earlyadoptionwhereas IAS 39allows earlyadoption.NoHKAS 39AmendmentTransition and Initial Recognition ofFinancial Assets and FinancialLiabilitiesIAS 39AmendmentNoNoNoHKAS 39AmendmentCash Flow Hedge Accounting ofForecast Intragroup TransactionsIAS 39AmendmentNoNoNoHKAS 39AmendmentThe Fair Value OptionIAS 39AmendmentNoNoNoHKAS 39 &HKFRS 4AmendmentsFinancial Instruments: Recognitionand Measurement and InsuranceContracts – Financial GuaranteeContractsIAS 39 & IFRS4 AmendmentsNoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS No.TitleIAS No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS 40#Investment 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 January 2007HKAS 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 January 2007HKAS 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 41#AgricultureIAS 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 January 2007HKFRS-Int No. TitleIFRIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKFRS-Int 1Changes in ExistingDecommissioning, Restoration andSimilar LiabilitiesIFRIC 1NoNoHKFRS-Int 1 includes afootnote specifying that theallowed alternative treatmentreferred to in paragraph 8should be read as thetreatment of capitalisationunder SSAP 19.HKFRS-Int 2Members’ Shares in Co-operativeEntities and Similar InstrumentsIFRIC 2NoNoNoHKFRS-Int 4Determining whether an Arrangementcontains a LeaseIFRIC 4NoNoNoHKFRS-Int 5Rights to Interests arising fromDecommissioning, Restoration andEnvironmental Rehabilitation FundsIFRIC 5NoNoNoHK(IFRIC)-Int 6 Liabilities arising from Participating ina Specific Market – Waste Electricaland Electronic EquipmentIFRIC 6NoNoNoHK(IFRIC)-Int 7 Applying the Restatement Approachunder HKAS 29 Financial Reporting inHyperinflationary EconomiesIFRIC 7NoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKFRS-Int No.TitleIFRIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHK(IFRIC)-Int 8Scope of HKFRS 2IFRIC 8NoNoNoHK(IFRIC)-Int 9Reassessment of EmbeddedDerivativesIFRIC 9NoNoNoHK(IFRIC)-Int 10Interim Financial Reporting andImpairmentIFRIC 10NoNoNoComparison between HK Financial Reporting Standards and International Financial Reporting Standardsas at 1 January 2007HKAS-Int No.TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS-Int 10Government Assistance – No SpecificRelation to Operating ActivitiesSIC-10NoHKAS-Int 10*(SIC 10) iseffective for APbeginning on orafter 1 January2005 (1 August1998).NoHKAS-Int 12Consolidation – Special PurposeEntitiesSIC-12NoHKAS-Int 12*(SIC 12) iseffective for APbeginning on orafter 1 January2005 (1 July1999).NoHKAS-Int 12AmendmentScope of HKAS-Int 12 Consolidation –Special Purpose EntitiesSIC-12AmendmentNoNo*NoHKAS-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 January 2007HKAS-Int No.TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS-Int 15Operating Leases – IncentivesSIC-15NoHKAS-Int 15*(SIC 15) iseffective for APbeginning on orafter 1 January2005 (1 January1999).NoHKAS-Int 21#Income Taxes – Recovery ofRevalued Non-Depreciable AssetsSIC-21NoHKAS-Int 21*(SIC 21) iseffective for APbeginning on orafter 1 January2005 (on 15 July2000).NoHKAS-Int 25#Income 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 January 2007HKAS-Int No.TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS-Int 27#Evaluating the Substance ofTransactions Involving the LegalForm of a LeaseSIC-27NoHKAS-Int 27*(SIC 27) iseffective for APbeginning on orafter 1 January2005 (on 31December2001).NoHKAS-Int 29#Disclosure – Service ConcessionArrangementsSIC-29NoHKAS-Int 29*(SIC 29) iseffective for APbeginning on orafter 1 January2005 (on 31December2001).NoHKAS-Int 31#Revenue – 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 January 2007HKAS-Int No.TitleSIC No.Differences inTransitionalProvisionsDifferences inEffectiveDatesOther Textual DifferencesHKAS-Int 32#Intangible 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 January 2007HK-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.#There are consequential amendments to these Hong Kong pronouncements arising from the issuance of new Standards, new Interpretations oramendments to existing Standards. Those consequential amendments have not yet been reflected in these Hong Kong pronouncements set out in VolumeII of the HKICPA Members’ Handbook. Please refer to the relevant new Standards, new Interpretations or amendments to Standards for the consequentialamendments.SIC-7 Introduction of the Euro is not adopted in Hong KongThe paragraph numbers in HKFRSs generally correspond to the paragraph numbers in IFRSs.