Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKAS 27.17(c)
(d)
[Or describe any other effects of adopting the HKICPA guidance as appropriate, for example, if applying
the alternative approach set out in the guidance, the recognition of reimbursement right assets and
LSP liabilities would also affect the information in the statement of financial position as at the
beginning of the comparative period, i.e. 1 January 2022, and as a result, a third statement of financial
position has to be presented in the annual financial statements for the year ended 31 December 2023
following the voluntary change in accounting policy.]
Subsidiaries and non-controlling interests
Subsidiaries are entities controlled by the group. The group controls an entity when it is exposed to,
or has rights to, variable returns from its involvement with the entity and has the ability to affect those
returns through its power over the entity. The financial statements of subsidiaries are included in the
consolidated financial statements from the date on which control commences until the date on which
control ceases.
Intra-group balances and transactions, and any unrealised income and expenses (except for foreign
currency transaction gains or losses) arising from intra-group transactions, are eliminated. Unrealised
losses resulting from intra-group transactions are eliminated in the same way as unrealised gains, but
only to the extent that there is no evidence of impairment.
For each business combination, the group can elect to measure any non-controlling interests ("NCI")
either at fair value or at the NCI's proportionate share of the subsidiary's net identifiable assets. NCI
are presented in the consolidated statement of financial position within equity, separately from equity
attributable to the equity shareholders of the company. NCI in the results of the group are presented
on the face of the consolidated statement of profit or loss and the consolidated statement of profit or
loss and other comprehensive income 87 as an allocation of the total profit or loss and total
comprehensive income for the year between NCI and the equity shareholders of the company. Loans
from holders of NCI and other contractual obligations towards these holders are presented as financial
liabilities in the consolidated statement of financial position in accordance with notes 1(t), (u), (v) or
(w) depending on the nature of the liability.
Changes in the group's interests in a subsidiary that do not result in a loss of control are accounted for
as equity transactions.
When the group loses control of a subsidiary, it derecognises the assets and liabilities of the subsidiary,
and any related NCI and other components of equity. Any resulting gain or loss is recognised in profit
or loss. Any interest retained in that former subsidiary is measured at fair value when control is lost.
In the company's statement of financial position, an investment in a subsidiary is stated at cost less
impairment losses (see note 1(n)), unless it is classified as held for sale (or included in a disposal group
classified as held for sale) (see note 1(dd)) 88.
87
88
As HK Listco has opted for the two-statement approach to the presentation of income and expenses (see footnote 47) and uses
the titles "statement of profit or loss" and "statement of profit or loss and other comprehensive income" (see footnote 46), these
terms continue to be used throughout the notes to this illustration. Where entities adopt instead the single-statement format
and/or the other titles for the statements (e.g. "income statement" and "statement of comprehensive income"), the references to
the relevant statements are to be tailored accordingly.
As further discussed in footnote 292, under the CO the company-level statement of financial position is required to be disclosed as
a note to the consolidated financial statements. Nevertheless, users may find the accounting policies in respect of investments in
subsidiaries, joint ventures and associates useful information in understanding how these investments are accounted for in the
company's statement of financial position. Therefore entities are recommended to disclose those accounting policies to the
extent that they are relevant to the company-level statement of financial position.
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