Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKFRS 7.25,
HKFRS 13.97
Any gain or loss arising from the remeasurement of the group's unlisted equity securities held for strategic
purposes are recognised in the fair value reserve (non-recycling) in other comprehensive income. Upon
disposal of the equity securities, the amount accumulated in other comprehensive income is transferred
directly to retained earnings.
The gains arising from the remeasurement of the conversion option embedded in the convertible notes are
presented in the "Other income" line item in the consolidated statement of profit or loss.
(ii) Fair value of financial assets and liabilities carried at other than fair value285
The carrying amounts of the group's financial instruments carried at amortised cost were not materially
different from their fair values as at 31 December 2022 and 2023 except for the following financial
instruments, for which their carrying amounts and fair value and the level of fair value hierarchy are
disclosed below:
Convertible notes
Redeemable
preference shares
Convertible notes
Redeemable
preference shares
Carrying amounts at 31
December 2023
Fair value at 31
December 2023
$'000
$'000
(9,542)
(8,580)
(3,912)
(2,878)
Carrying amounts at 31
December 2022
Fair value at 31
December 2022
$'000
$'000
(9,356)
(8,450)
(3,912)
(2,628)
Fair value measurements as at
31 December 2023 categorised into
Level 1
$'000
Level 2
$'000
Level 3
$'000
(8,580)
(2,878)
Fair value measurements as at
31 December 2022 categorised into
Level 1
$'000
Level 2
$'000
Level 3
$'000
(8,450)
(2,628)
Valuation techniques and inputs used in Level 3 fair value measurements
The fair values of the convertible notes and redeemable preference shares are estimated as being the present
values of future cash flows, discounted at interest rates based on the government yield curve as at the end of
the reporting period plus an adequate constant credit spread, adjusted for the group's own credit risk.
HKFRS 7.25-26, 29
HKFRS 13.97
285 In this illustration, we have illustrated the disclosures required by paragraphs 25 and 26 of HKFRS 7, i.e. the fair values for each
class of financial assets and financial liabilities that are not carried at fair value. As stated in paragraph 29 of HKFRS 7, such
disclosure is not required:
⚫ when the carrying amount of a financial instrument is a reasonable approximation of fair value; or
⚫ for lease liabilities.
In addition, paragraph 97 of HKFRS 13 requires entities to disclose the following information for each class of assets and
liabilities not measured at fair value in the statement of financial position but for which the fair value is disclosed:
⚫ level of the fair value hierarchy within which the fair value measurements are categorised in their entirety;
⚫ for fair value measurements categorised within Level 2 and Level 3:
a description of the valuation technique(s);
a description of the inputs used in the fair value measurement;
any change in valuation technique and the reason(s) for making the change; and
⚫ for any non-financial asset whose highest and best use differs from its current use, this fact and the reason why it is being
used in a manner that differs from its highest and best use.
For such assets and liabilities, entities need not provide the other disclosures required by HKFRS 13.
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