What Is a Financial Year End in Hong Kong? (Accounting Reference Date)

The Companies Ordinance ties a company's financial year to its accounting reference period, which ends on the accounting reference date.

• The first accounting reference period begins on the date of incorporation and ends on the company's primary accounting reference date (s.368).
• Every later accounting reference period is 12 months, starting the day after the previous one ended and ending on the accounting reference date (s.368(3)), unless the period is deliberately shortened or extended by a directors' resolution (s.371).
• The accounting reference date is the yearly anniversary of the primary date (s.370).

The financial year end drives most compliance dates:

• financial statements are prepared as at that date;
• for most private companies, the statements must be presented to members at the annual general meeting (AGM) or sent to them within 9 months after the year end (s.431);
• the audit and the profits tax return are organised around it.

Many Hong Kong companies use 31 March (aligned with the government's tax year) or 31 December, but the law lets directors choose, within limits (see how to choose a year end, how long the first period can be, and how to change the year end).