The Hong Kong Society of Accountants (HKSA) says it will partially redraft a proposed accounting standard aimed at increasing corporate disclosure of related party transactions.
Although the draft proposal won significant support in the area of general party disclosure, it encountered corporate opposition to individual provisions.
This led to the redraft proposal, HKSA director of professional standards James Fawls said.
'This will involve tidying up a number of definitions and clarifying a few areas people found confusing,' he said.
The term 'related party' refers broadly to any associated company, subsidiary and/or joint venture, as well as any other company controlled by the same shareholders.
Some corporate respondents expressed strong opposition to a rule which, if implemented, would force companies to disclose the individual names of related parties with which they dealt.
The Society will partly redraft this aspect of the rules.
