Summary Report of HKSAP

This framework sets out the concepts that underlie the preparation and presentation of financial statements under generally accepted accounting principles in Hong Kong. Its purpose is to provide practical assistance to preparers, users and auditors of financial statements. This framework is not an accounting standard. The requirements of the Accounting Standard prevail over those of this Framework. The framework deals with the following six areas:
a) The primary objective of financial statements
The primary objective of financial statements is to provide information that is useful to users for the purpose of assessing the financial position at a particular point in time and the performance and cash flows of an enterprise during a specified period of time and the stewardship of management during that period.
b) Other uses of financial statements
Apart from the shareholders of an enterprise, investors, employees, lenders, suppliers and other trade creditors, customers, gove...