Hong Kong’s new Companies Ordinance, which came into force on 3 March 2014, introduced changes affecting financial reporting by Hong Kong companies.

In respect of financial years commencing after 3 March 2014, certain Hong Kong companies may dispense with the new requirement to incorporate a business review into the directors’ report.

If a private company is not exempt under the Companies Ordinance from the business review requirement, it may resolve by way of Special Resolution at least six months before the end of financial year to opt out of the business review.  The Special Resolution may cover just the current year, or the current year and every subsequent year.  The opt-out may be revoked, again by way of Special Resolution.