Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
HKAS 36.134(f)
Financial statements for the year ended 31 December 2023
HKFRS 12.1&3&C2B
184
HKFRS 12.5A, B17
A16(9)(2), CP
A16(9)(1)
CP
183 For each CGU for which the carrying amount of goodwill or intangible assets with indefinite useful lives allocated to that unit is
significant in comparison with an entity's total carrying amount of goodwill or intangible assets with indefinite useful lives, disclosure
of the following information is required if a reasonably possible change in a key assumption on which management has based its
determination of the unit's (group of units') recoverable amount would cause the unit's (group of units') carrying amount to exceed its
recoverable amount:
•
the amount by which the unit's (group of units') recoverable amount exceeds its carrying amount;
the value assigned to the key assumption; and
the amount by which the value assigned to the key assumption must change, after incorporating any consequential effects of that
change on the other variables used to measure recoverable amount, in order for the unit's (group of units') recoverable amount to
be equal to its carrying amount.
HKFRS 12 requires an entity to disclose information that enables users of its financial statements to evaluate:
•
•
the nature of, and risks associated with, its interests in other entities; and
the effects of those interests on its financial position, financial performance and cash flows.
The standard contains extensive disclosure requirements in respect of an entity's interests in subsidiaries, joint arrangements,
associates and unconsolidated structured entities. Paragraph 3 of HKFRS 12 requires that, if the disclosures required by this
standard, together with disclosures required by other HKFRSS, do not meet the above disclosure objective, the entity should disclose
additional information necessary to meet the objective.
The disclosure requirements of HKFRS 12, other than the requirements to disclose summarised financial information, also apply to
an entity's interests in other entities that are classified as held for sale or discontinued operations in accordance with HKFRS 5.
185 Paragraph 9(2) of Appendix 16 to the MBLRs requires listed issuers to disclose particulars of the issued share capital and debt
securities of every subsidiary. In this illustration, HK Listco discloses additional information about the amount of registered capital
being paid up when it has not been fully paid.
In accordance with Note 9.2 to paragraph 9 of Appendix 16, if a listed issuer has an excessive number of subsidiaries, the statement
need only include details for subsidiaries which, in the opinion of the directors, materially contribute to the net income of the group
or hold a material portion of the assets or liabilities of the group.
186 Paragraph 9(1) of Appendix 16 to the MBLRS requires the disclosure of the subsidiary's principal country of operation and country of
incorporation or other establishment. Where the subsidiary is established in Chinese Mainland, disclosure of the type of legal entity
it is registered as under applicable law (such as a contractual or cooperative joint venture) is also required.
In this illustration, it is assumed that the principal place of operation and the place of incorporation of HK Listco's subsidiaries are
the same. If the principal place of operation and the place of incorporation of the subsidiaries are different, the information should
be disclosed separately.
187 Although not required, the proportion of voting power held is also commonly shown if different from the proportion of ownership
interest.
118
© 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