Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKFRS 7.35G(a)(i), 35M(iii),
35N & B81
The following table provides information about the group's exposure to credit risk and ECLs for trade
receivables and contract assets: 2.
271
HKFRS 7.35M, 35N &
B81
2023
Expected loss rate
Gross carrying amount
Loss allowance
%
$'000
$'000
Hong Kong
Current (not past due)
0.5%
36,509
(183)
1-30 days past due
2.7%
9,990
(270)
31-60 days past due
5.1%
7,666
(391)
61-90 days past due
20.8%
2,012
(418)
More than 90 days past due
43.7%
2,248
(982)
58,425
(2,244)
South East Asia
Current (not past due)
0.4%
6,636
(26)
1-30 days past due
1.8%
1,404
(25)
31-60 days past due
3.1%
801
(25)
61-90 days past due
14.6%
287
(42)
More than 90 days past due
30.8%
253
(78)
9,381
(196)
Rest of the world
Current (not past due)
0.7%
7,691
(54)
1-30 days past due
1.5%
2,161
(32)
31-60 days past due
7.6%
3,003
(228)
61-90 days past due
17.6%
1,588
(279)
More than 90 days past due
53.8%
1,500
(807)
15,943
(1,400)
271 Paragraph 35M of HKFRS 7 requires the disclosure about an entity's credit risk exposure to be by credit risk rating grades. Credit
risk rating grades are defined in the Appendix A to HKFRS 7 as the rating of credit risk based on the risk of a default occurring on
the financial instrument. Credit risk rating grades used for disclosure should be consistent with those the entity reports to key
management personnel for credit risk management purposes. For example, an entity may manage and report to key
management personnel about information on its listed debt securities by external credit ratings provided by rating agencies. In
that case, the entity would disclose its credit risk exposure to those listed debt securities based on the external credit ratings.
Alternatively, an entity may have developed an internal credit rating system whereby each of its financial asset is assigned a
rating representing the risk of default, in which case the disclosure of credit risk exposure would be based on the internal credit
ratings developed. However, if delinquency and past due information is the only borrower-specific information available
without undue cost or effort and this information is used to assess whether credit risk has significantly increased since initial
recognition, then in such cases, an entity should provide the analysis by "past due" status rather than by credit risk rating
grades.
Paragraph 35N of HKFRS 7 provides an exception to the general disclosure requirements in paragraph 35M for trade
receivables, contract assets and lease receivables to which the simplified approach applies (i.e. the loss allowance is always
measured at an amount equal to lifetime ELCs). Paragraph 35N allows an entity to disclose its credit risk exposure to those
assets based on a provision matrix. We have illustrated here an example of disclosure based on a provision matrix. Other
presentations may be appropriate.
170
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