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  Irregularities and Non-compliances > What is a "relevant non-compliance"?
 
 

The FRC may initiate an enquiry into a possible relevant non-compliance with financial reporting requirements on the part of listed entities. 

A relevant non-compliance exists if a relevant financial report of a listed entity does not comply with a relevant requirement. A relevant non-compliance is defined in section 5 of the Financial Reporting Council Ordinance (the “FRC Ordinance”).
Relevant financial report

For a listed entity (other than a listed collective investment scheme), a relevant financial report generally refers to its financial statements, which comprises its annual and interim financial statements as required under the Companies Ordinance and/or the Listing Rules.  It also includes accountants’ reports required for a listing document, for example, a prospectus.

In relation to a listed collective investment scheme, a relevant financial report generally refers to the financial statements of the scheme published for the purposes of the relevant SFC Codes or guidelines or  Listing Rules. It also includes accountants' reports in a listing document.

For further information, please refer to Part 1 and Part 2 of Schedule 1 to the FRC Ordinance.
Relevant requirement

A relevant requirement refers to accounting requirements as provided in:-
the Companies Ordinance (applicable for listed corporation only);
the standards of accounting practices issued or specified by the council of the Hong Kong Institute of Certified Public Accountants (i.e. the Hong Kong Financial Reporting Standards);
the International Financial Reporting Standards issued by the International Accounting Standards Board;
the Listing Rules;
any generally acceptable accounting principles allowed for usage under the Listing Rules; or
the relevant SFC Codes or guidelines (applicable for listed collective investment scheme only).

For further information, please refer to Part 1 and Part 2 of Schedule 1 to the FRC Ordinance.
 

Page last updated: 12 July 2007