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Implementing the New Financial Reporting Standards (FRS) in Macao

Section I: Tax Declarations

When implementing the new FRS, it’s essential to consider the following key points regarding tax declarations:

  • Handling tax laws after implementation of the New FRS: Pay attention to discrepancies between the New FRS and tax laws. Contact the Centre of Supplementary Tax on Income (Group A) at (853) 8599 0419 for more information.
  • Change in accounting standards for a SME:
    • If a small-and-medium-sized enterprise (SME) opted to apply the Original FRS, they can change to the General Financial Reporting Standards (GFRS) after the implementation of the New FRS.
    • Present this fact in the technical report and make prior period adjustments.

Section III: Application of International Standards

The following points highlight the importance of adopting international standards when implementing the new FRS:

  • Adopting the latest edition of IFRS: The FRS is a regulation of Macao, so companies must apply the FRS when preparing statutory annual financial reports, even if they are subsidiaries of companies that adopt the latest edition of IFRS in other jurisdictions.
  • Following international standards for consolidated statements: Companies in Macao must apply the FRS when preparing their own statutory annual financial reports, but when preparing consolidated statements with their parent company in Hong Kong, they should adjust to reflect the parent company’s use of the latest edition of IFRS.

Annex: Comparison between Original FRS and New FRS Regulations

The following table highlights the key differences between Administrative Regulation No. 25/2005 (Original FRS) and Order No. 44/2020 (New FRS):

Regulation Effective Date Scope of Application Transitional Provisions
Original FRS December 31, 2005 Same scope as New FRS, with some differences in transitional provisions Mandatory implementation date: January 1, 2007
New FRS March 28, 2020 Same scope as Original FRS, with some differences in transitional provisions Mandatory implementation date: January 1, 2022

Contact Information

For more information or assistance, please contact the Committee for the Registry of Auditors and Accountants at: