TNAG-1724-FCO40-2437-Minutes-and-Hansards-of-the-Legislative-Council-of-Hong-Kong-1988 — Page 126

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SPEECH BY THE HONOURABLE FINANCIAL SECRETARY IN LEGISLATIVE COUNCIL: WHINESDAY 10 PBBRUARY 1988

Companies Ordinance (Chapter 32) Companies (Amendment) Bill 1988

FINANCIAL SECRETARY:

Resumption of Second_Reading

Sir,

I am grateful for the support given by Mr. Helmut

for their

Sohmen and Mr. Peter Poon of the Au Xoc

assistance.

group

при

2.

As Mr. Poon has pointed out, concern has been

expressed that auditors may encounter difficulties in

determining whether a loan is concessionary or not. In

particular it is feared that the subjectivity required of

auditors will lead to different treatment of equivalent

loans in the financial statements of different

institutions.

5

al

3.

number

I understand this concern but do not expect

there to be insuperable difficulties. Loans falling into

this category are likely to be few and where they do occur

should in most cases be clear cut. There will always be

marginal cases where auditors will have to exercise their

But auditors are not unused to this

judgement.

- in applying the provisions of the

By ELA NG 10/2/88