Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
Property development
Cost of properties comprises specifically identified cost, including the acquisition cost of interests
in freehold and leasehold land 94, aggregate cost of development, materials and supplies, wages and
other direct expenses, an appropriate proportion of overheads and borrowing costs capitalised
(see note 1(cc)) and any other costs incurred in bringing the properties to their present location
and condition. In the case of properties developed by the group which comprise of multiple units
to be sold individually, the cost of each unit is determined by apportionment of the total
development costs for that development project to each unit on a per square foot basis, unless
another basis is more representative of the cost of the specific unit.
Net realisable value represents the estimated selling price less any estimated costs of completion
and costs to be incurred in selling the property.
(ii) Other contract costs
Other contract costs are either the incremental costs of obtaining a contract with a customer or the
costs to fulfil a contract with a customer which are not capitalised as inventory (see note 1(o)(i)),
property, plant and equipment (see note 1(k)) or intangible assets (see note 1(I)).
Incremental costs of obtaining a contract, e.g. sales commissions, are capitalised if the costs relate to
revenue which will be recognised in a future reporting period and the costs are expected to be
recovered 101. Other costs of obtaining a contract are expensed when incurred.
Costs to fulfil a contract are capitalised if the costs relate directly to an existing contract or to a
specifically identifiable anticipated contract; generate or enhance resources that will be used to
provide goods or services in the future; and are expected to be recovered. Otherwise, costs of fulfilling
a contract, which are not capitalised as inventory, property, plant and equipment or intangible assets,
are expensed as incurred.
Capitalised contract costs are stated at cost less accumulated amortisation and impairment losses.
Amortisation of capitalised contract costs is recognised in profit or loss when the revenue to which the
asset relates is recognised (see note 1(aa)(i)).
62
© 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