Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
HKFRS 15.119(b)
HKFRS 15.129
Financial statements for the year ended 31 December 2023
HKFRS 15.121-122
HKFRS 15.129
The group's construction contracts include payment schedules which require stage payments over
the construction period once milestones are reached. Starting from 2023, the group has introduced
new contract terms whereby a 20% deposit is payable upfront. The group also typically agrees to a
one year retention period for 5% of the contract value which the group's entitlement to this final
payment is conditional on the group's work satisfactorily passing inspection. To the extent that the
difference in timing arises for reasons other than the provision of finance, no financing component
is deemed to exist. Otherwise, the group has taken advantage of the practical expedient in
paragraph 63 of HKFRS 15 and does not adjust the consideration for any effects of a significant
financing component if the period of financing is 12 months or less 106.
If at any time the costs to complete the contract are estimated to exceed the remaining amount of
the consideration under the contract, then a provision is recognised in accordance with note 1(z).
(d)
Other practical expedients applied
(ii)
In addition, the group has applied the following practical expedients:
For sales contracts for electronic products that had an original expected duration of one year or
less, the group has not disclosed the information related to the aggregated amount of the
transaction price allocated to the remaining performance obligations in accordance with
paragraph 121(a) of HKFRS 15.
The group has recognised the incremental costs of obtaining contracts relating to the sale of
completed properties and services as an expense when incurred in accordance with paragraph
94 of HKFRS 15, as the amortisation period of the assets that the group otherwise would have
recognised is within the same reporting period as the date of entering into the contract.
Revenue from other sources and other income
(a)
Rental income from operating leases
HKFRS 16.81
(b)
(c)
HKAS 20.39(a)
(d)
Rental income from operating leases is recognised in profit or loss on a straight-line basis over the
term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease. Variable lease payments that do not depend on an index or a
rate are recognised as income in the accounting period in which they are earned.
Dividends
Dividend income is recognised in profit or loss on the date on which the group's right to receive
payment is established.
Interest income
Interest income is recognised using the effective interest method. The "effective interest rate" is
the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the gross carrying amount of the financial asset. In calculating interest income,
the effective interest rate is applied to the gross carrying amount of the asset (when the asset is
not credit-impaired). However, for financial assets that have become credit-impaired subsequent
to initial recognition, interest income is calculated by applying the effective interest rate to the
amortised cost of the financial asset. If the asset is no longer credit-impaired, then the calculation
of interest income reverts to the gross basis.
Government grants
Government grants are recognised in the statement of financial position initially when there is
reasonable assurance that they will be received and that the group will comply with the conditions
attaching to them.
Grants that compensate the group for expenses incurred are recognised as income in profit or loss
on a systematic basis in the same periods in which the expenses are incurred.
Grants that compensate the group for the cost of an asset are deducted from the carrying amount
of the asset and consequently are effectively recognised in profit or loss over the useful life of the
asset by way of reduced depreciation expense.
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