Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
(x)
(i)
HK Listco Ltd
Financial statements for the year ended 31 December 2023
Employee benefits
Short term employee benefits and contributions to defined contribution retirement plans
Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the obligation
can be estimated reliably.
Obligations for contributions to defined contribution retirement plans are expensed as the related
service is provided.
(ii)
Defined benefit plan obligations
The group has the following two categories of defined benefit plans:
defined benefit retirement plans registered under the Hong Kong Occupational Retirement
Schemes Ordinance (the "ORSO plans")
LSP under the Hong Kong Employment Ordinance.
The group's net obligation in respect of defined benefit plans is calculated separately for each plan
by estimating the amount of future benefit that employees have earned in the current and prior
periods and discounting that amount. For ORSO plans, the net obligation is after deducting the fair
value of plan assets. For LSP obligations, the estimated amount of future benefit is determined after
deducting the negative service cost arising from the accrued benefits derived from the group's MPF
contributions that have been vested with employees, which are deemed to be contributions from
the relevant employees.
The calculation of defined benefit obligation is performed by a qualified actuary using the projected
unit credit method. For ORSO plans, when the calculation results in a benefit to the group, the
recognised asset is limited to the present value of economic benefits available in the form of any
future refunds from the plan or reductions in future contributions to the plan.
Remeasurements arising from defined benefit plans, which comprise actuarial gains and losses, the
return on plan assets in ORSO plans (excluding interest) and the effect of any asset ceiling (excluding
interest), are recognised immediately in OCI. Net interest expense for the period is determined by
applying the discount rate used to measure the defined benefit obligation at the beginning of the
reporting period to the then net defined benefit liability, taking into account any changes in the net
defined benefit liability during the period. Net interest expense and other expenses related to
defined benefit plans are recognised in profit or loss.
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