Hong Kong Regulations

SECURITIES AND FUTURES (FINANCIAL RESOURCES) RULES - SECT 53

Other liabilities

(1) Subject to subsection (2), a licensed corporation shall include in its
ranking liabilities all its liabilities not otherwise required to be included
in its ranking liabilities under any other provision of this Division,
including-

   (a)  any amount payable by it in relation to any overdraft obtained by it;

   (b)  any amount payable by it in relation to any loan obtained by it;

   (c)  any accrued interest payable by it to any other person;

   (d)  any accrued expenses incurred by it;

   (e)  any tax payable by it, less any tax prepaid by it, to the extent that
        the tax payable and the tax prepaid are of the same description and
        levied by the same taxation authority;

   (f)  any provision made by it for contingent liabilities;

   (g)  any provision made by it for floating losses in respect of open
        positions held for its own account; and

   (h)  any other liabilities provided for in accordance with generally
        accepted accounting principles.

(2) A licensed corporation shall not include in its ranking  liabilities-

(a) any approved subordinated loan provided to it; or

   (b)  any liability that it is not required to settle within the next 12
        months and is secured by a first legal charge on immovable property
        beneficially owned by it and used in carrying on the regulated
        activity for which it is licensed, to the extent that the net
        realizable value of that property equals such liability.