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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 © 2023 KPMG, a Hong Kong partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved.
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