Can a Hong Kong company present its financial statements in USD or RMB instead of HKD?
Yes, where the standard allows it. HKAS 21 and HKFRS for Private Entities let a company present in any currency and translate its results and position from its functional currency. SME-FRS uses a single reporting currency instead. The Companies Ordinance requires compliance with applicable standards but contains no rule forcing Hong Kong dollars.
Functional versus presentation currency. The functional currency is the currency of the company's primary economic environment and is used to measure transactions. The presentation currency is the one in which the statements are shown. They can differ, in which case the results and financial position are translated.
What the standards say. HKAS 21 (para 38) and HKFRS for Private Entities (s.30.17) both state that an entity may present its financial statements in any currency (or currencies). If that differs from the functional currency, income, expenses and financial position are translated into the presentation currency. The SME-FRS makes no distinction between reporting and presentation currency: a company using it has one reporting currency, that of its primary economic environment.
What the law says. Section 380 requires financial statements to comply with the applicable accounting standards. Nothing in the Companies Ordinance requires them to be in Hong Kong dollars.
Points to check before choosing
- Auditor's view: agree the presentation currency with your auditor before year end.
- Users: investors, lenders, a parent company and banks may prefer a particular currency.
- Tax: the IRD assesses profits in Hong Kong dollars. Ask your tax adviser how foreign-currency accounts are converted for the profits tax computation; that is outside this section.
- Consistency: changing currency later needs restated comparatives.
For most Hong Kong SMEs trading locally, HKD is the simple default. For companies mainly transacting in USD or RMB, discuss the options with your accountant early.
Legal basis
- Companies Ordinance (Cap. 622), s.380
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
- Where must a Hong Kong company keep its accounting records, and can they be kept overseas?Records must be kept at the registered office or any other place the directors think fit, and directors must be able to inspect them at any time free of charge. If they are kept outside Hong Kong, accounts and returns for that business must be sent to and kept in Hong Kong.
- Is a Hong Kong company legally required to keep accounting records?Yes. Section 373 of the Companies Ordinance (Cap. 622) requires every company to keep accounting records that explain its transactions and show its financial position and performance at any time. Directors who fail to take all reasonable steps risk a fine of HK$300,000, and up to 12 months' jail if the failure is wilful.
- How long must a Hong Kong company keep its accounting records?Seven years. Under section 377 of the Companies Ordinance, a company must keep its accounting records for 7 years after the end of the financial year to which the last entry relates. The Inland Revenue Department separately requires business records to be kept at least 7 years after the transactions they relate to.
- What does section 51C of the Inland Revenue Ordinance require from my business?Anyone carrying on a trade, profession or business in Hong Kong must keep enough records, in English or Chinese, to work out assessable profits, and keep them for at least 7 years. Failing to do so without reasonable excuse can lead to a fine of up to HK$100,000.
- Which documents should a Hong Kong business keep for its books?Keep every document that supports an entry in your books: sales and purchase invoices, receipts, bank statements, contracts, payroll and MPF records, asset purchase papers, loan agreements, and stocktake sheets. The test is whether someone else could trace any figure back to its source.