Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKFRS 7.34 & 35
The carrying amount of the loan at 31 December 2023 was $13,950,000 (2022: $14,400,000). A foreign
exchange gain of $494,000 (2022: loss of $219,000) was recognised in the group's other
comprehensive income for the period on translation of the loan to Hong Kong dollars.
(iv) Exposure to currency risk 280
The following table details the group's exposure at the end of the reporting period to currency risk
arising from recognised assets or liabilities denominated in a currency other than the functional
currency of the entity to which they relate. For presentation purposes, the amounts of the exposure
are shown in Hong Kong dollars, translated using the spot rate at the year end date. Differences
resulting from the translation of the financial statements of foreign operations into the group's
presentation currency and the exposure arising from the secured bank loan that is designated as a
hedge of the group's net investment in its subsidiary in Singapore (see (iii) above) are excluded.
Exposure to foreign currencies (expressed in Hong Kong dollars)
HKFRS 7.34 & 35
280
HKFRS 7.B23
HKAS 21.45
281
2023
2022
United
States
Australian United States
Australian
Dollars
Euros
$'000
$'000
Japanese Yen
$'000
Dollars
Dollars
$'000
$'000
Euros
$'000
Japanese Yen
Dollars
$'000
$'000
Trade and other receivables
Intercompany receivables 281
11,144
6,831
8,648
3,762
1,935
1,143
Cash and cash equivalents
Trade and other payables
15,628
(27,741)
13,440
(10,540)
21,436
(20,362)
10,675
(15,250)
Gross exposure arising from recognised
assets and liabilities
13,079
6,831
(12,113)
2,900
9,791
3,762
1,074
(4,575)
Notional amounts of forward exchange
contracts used as economic hedges
Net exposure arising from recognised
assets and liabilities
(5,500)
10,714
(4,400)
13,079
1,331
(1,399)
2,900
9,791
(638)
1,074
(4,575)
Other than the requirements for sensitivity analyses for market risk (see footnote 278), HKFRS 7 does not specify the minimum
information required to be disclosed in respect of an entity's exposure to currency risk. The currency risk table illustrated above
provides an example of summary quantitative data about the exposure to that risk at the end of the reporting period that an entity
may provide internally to key management personnel.
In this connection, it should be noted that for the purposes of HKFRS 7 currency risk arises on financial instruments that are
denominated in a foreign currency (i.e. are denominated in a currency other than the functional currency in which they are
measured). However, currency risk does not arise from non-monetary items or from financial instruments denominated in the
functional currency of the entity to which they relate.
For the purposes of disclosure under HKFRS 7, currency risk for the group arises if, for example, a subsidiary with a functional
currency RMB lends in US dollars, even if the group presentation currency is also US dollars. Currency risk does not arise if that
same subsidiary lends instead in RMB. This applies whether or not the counterparty to the borrowing is a third party or another
entity within the group. This is because, although intra-group balances are eliminated on consolidation, any related foreign
exchange gains or losses will not be eliminated. It follows that the information about exposure to currency risk at each group
company level needs to be collated when different companies within the group have different functional currencies. Each group
company needs to assess its own exposure to currencies other than its own functional currency, with the group's exposure to
currency risk disclosed under HKFRS 7 being an aggregation of this information.
182
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