Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
(dd) Non-current assets held for sale and discontinued operations
(i) Non-current assets held for sale
(ii)
Non-current assets, or disposal group comprising assets and liabilities, are classified as held for sale if it
is highly probable that they will be recovered primarily through sale rather than through continuing
use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair
value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then
to the remaining assets and liabilities on a pro-rata basis, except that no loss is allocated to deferred
tax assets, employee benefits assets, financial assets (other than investments in subsidiaries,
associates and joint ventures) and investment properties, which continue to be measured in
accordance with the group's other accounting policies 108. Impairment losses on initial classification as
held for sale or held for distribution and subsequent gains and losses on remeasurement are recognised
in profit or loss.
Once classified as held for sale, intangible assets and property, plant and equipment are no longer
amortised or depreciated, and any equity-accounted investee is no longer equity accounted.
Discontinued operations
A discontinued operation is a component of the group's business, the operations and cash flows of
which can be clearly distinguished from the rest of the group and which:
-
represents a separate major line of business or geographical area of operations;
is part of a single co-ordinated plan to dispose of a separate major line of business or geographical
area of operations; or
is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets
the criteria to be classified as held for sale.
Where an operation is classified as discontinued operation, the comparative statement of profit or loss
and OCI is re-presented as if the operation had been discontinued from the start of the comparative
year.
108 Paragraph 5 of HKFRS 5 contains the full list of the assets which are not subject to the measurement requirements of HKFRS 5, even
though they are subject to the disclosure requirements if they meet the held for sale criteria either individually or as part of a disposal
group. For the purposes of describing the significant aspects of this accounting policy, the wording here takes an approach of listing
only those assets in the paragraph 5 of HKFRS 5 which the group currently has on its statement of financial position. This wording is
illustrative only and other approaches may also be acceptable, provided the disclosure is factually accurate to the entity's
circumstances.
74
© 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.View entire presentation