Accounting rules squeeze HK company profits, says Deloitte

Hong Kong’s biggest companies’ profits plunged despite a surge in revenue
last year, and a Deloitte report is pointing the finger at mark-to-market
accounting rules.

The study found that impairment losses of Hong Kong’s top 100 listed
companies by market capitalisation more than doubled to HK$646bn, which
triggered a slide in aggregate net profit of 23% to $143bn in the year to 31
December 2008.

Over the same period, total revenue of these same companies increased by 17%
to HK$9,678bn, the Financial Times reported.

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