Accounting reference date in Hong Kong

Accounting Reference Date in Hong Kong

A Hong Kong company's accounting reference date is the statutory date that marks the end of its financial year on record with the Companies Registry. It is the company's official financial year end and determines the deadlines for preparing financial statements, the audit and the profits tax return. Every Hong Kong incorporated company chooses an accounting reference date on incorporation, typically 31 March or 31 December, though any date in the year is permitted. This date is often referred to as the accounting reference date hong kong companies record with the Registrar under the Companies Ordinance (Cap. 622). The accounting reference date determines the basis period for each year of assessment for profits tax purposes and the due date for delivering the annual return. Directors should note that the accounting reference date is not the same as the anniversary of incorporation; it is a separate date the company selects and can alter.

ARD Hong Kong

The accounting reference date, commonly abbreviated as ARD, is the date that closes a company's financial year. The term ARD Hong Kong appears most often in tax correspondence and audit instructions, where the Inland Revenue Department uses the accounting date code from the ARD to issue the profits tax return (BIR51) and set the block extension deadline.

Change Accounting Reference Date

A Hong Kong company may change its accounting reference date, subject to conditions under the Companies Ordinance. A change accounting reference date application is permitted where the new period does not exceed 18 months, or where the company is aligning with its holding company or a subsidiary. A change that produces a period longer than 18 months requires the Registrar's consent. The directors should resolve to change the date before filing the notice.

Form NAC4 Hong Kong

The statutory form for notifying a change of accounting reference date is Form NAC4 Hong Kong. The full title is Notice of Alteration of Accounting Reference Date. The completed Form NAC4 must be delivered to the Companies Registry within 15 days after the date of the directors' resolution authorising the change. No registration fee is payable for filing Form NAC4. A company cannot change its accounting reference date retrospectively.

Hong Kong Company Accounting Date

The Hong Kong company accounting date is another name for the accounting reference date. It is the date that closes the company's annual accounts and governs the preparation of audited financial statements. The accounting date also determines when directors must lay the financial statements before members and when the auditor's report must be signed. A company with a 31 March accounting date, for example, will have its financial statements due for filing by a different deadline than a company with a 31 December date. The accounting date code appears on every profits tax return the Inland Revenue Department issues to the company.