Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HKFRS 7.24B(b)(i), (ii)
24C(b), 24E & 24F
HK Listco Ltd
Financial statements for the year ended 31 December 2023
The following table provides a reconciliation of the hedging reserve in respect of interest rate risk and
shows the effectiveness of the hedging relationships:
2023
2022
$'000
$'000
Balance at 1 January
951
858
Effective portion of the cash flow hedge recognised in other comprehensive
income
196
159
Amounts reclassified to profit or loss (note (i))
(98)
(80)
Related tax
(17)
14
Balance at 31 December (note (ii))
1,032
951
Change in fair value of the interest rate swaps during the year
Hedge ineffectiveness recognised in profit or loss (note (iii))
197
160
(1)
(1)
Effective portion of the cash flow hedge recognised in other comprehensive
income
196
159
Notes:
(i)
Amounts reclassified to profit or loss are recognised in the "Finance costs" line item in the consolidated statement of profit or
loss (see note 5(a)).
(ii) The entire balance in the hedging reserve relates to continuing hedges 276.
(iii) Hedge ineffectiveness is recognised in the "Other income" line item in the consolidated statement of profit or loss (see note
4).
HKFRS 7.24B(b)(iii)
276 Paragraph 6.5.12 of HKFRS 9 provides that when an entity discontinues hedge accounting for a cash flow hedge, but the hedged
future cash flows are still expected to occur, the amount that has been accumulated in the hedging reserve remains in the reserve
until the future cash flows occur. Paragraph 24B(b)(iii) of HKFRS 7 requires an entity to disclose balances remaining in the cash
flow hedge reserve from any hedging relationships for which hedge accounting is no longer applied.
177
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