Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HKAS 7.45
HKAS 7.45
(b)
Prepayments
Prepayments for:
-
SaaS arrangement 213
- others
HK Listco Ltd
Financial statements for the year ended 31 December 2023
2023
$'000
2022
$'000
634
80
190
714
190
22
CASH AND CASH EQUIVALENTS AND OTHER CASH FLOW INFORMATION
(a)
Cash and cash equivalents comprise:
2023
2022
$'000
$'000
Deposits with banks and other financial institutions
36,059
49,185
Cash at bank and on hand
34,332
52,029
Property pre-sale proceeds held by solicitor (note (i)) 214
6,189
3,874
Cash and cash equivalents in the consolidated statement of financial position
76,580
105,088
Bank overdrafts (note 26)
(1,266)
(2,789)
Cash and cash equivalents in the consolidated cash flow statement
75,314
102,299
(i)
HKAS 7.48
(ii)
HKAS 1.60, 66
In accordance with the relevant laws and regulations governing the pre-sale of residential properties in
Hong Kong, prepayments by customers are held by firms of solicitors as stakeholders. The amounts can be
released to the group for meeting certain prescribed costs associated with the property development or if
certain conditions are fulfilled.
As at 31 December 2023, cash and cash equivalents situated in Chinese Mainland amounted to $8,521,000
(2022: $7,342,000). Remittance of funds out of Chinese Mainland is subject to relevant rules and
regulations of foreign exchange control.
213 Entities apply the general principles in HKAS 1 when classifying and presenting prepayment balances. In this illustration, HK Listco pays
the annual SaaS arrangement fees in advance at the beginning of each year. In addition, the implementation services for the SaaS
arrangement are distinct from the access to the cloud software, and the implementation services are expected to be received within 12
months from when the associated payments are made. Therefore, the prepayment balance at the reporting date is classified wholly as
current.
HKAS 7.6-7
214
In this illustration, HK Listco considers that the property pre-sale proceeds held by solicitors meet the definition of cash equivalents in
accordance with paragraphs 6 and 7 of HKAS 7, as among other things the amounts are held for meeting short-term cash commitments
of settling costs associated with the property development. Whether the definition of "cash equivalents" in HKAS 7 is met depends on an
entity's specific facts and circumstances.
135
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