Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
The estimated useful lives for the current and comparative periods are as follows:
Freehold land is not depreciated.
Buildings situated on freehold land are depreciated over their estimated useful life, being no
more than 50 years after the date of completion.
Leasehold land is depreciated over the unexpired term of lease.
The group's interests in buildings situated on leasehold land are depreciated over the shorter of
the unexpired term of lease and the buildings' estimated useful lives, being no more than 50
years after the date of completion.
Plant and machinery
Others
10 years
3-5 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
(I)
Intangible assets (other than goodwill)
HKAS 38.118(a) &
(b)
Expenditure on research activities is recognised in profit or loss as incurred. Development expenditure
is capitalised only if the expenditure can be measured reliably, the product or process is technically
and commercially feasible, future economic benefits are probable and the group intends to and has
sufficient resources to complete development and to use or sell the resulting asset. Otherwise, it is
recognised in profit or loss as incurred. Capitalised development expenditure is subsequently
measured at cost less accumulated amortisation and any accumulated impairment losses⁹1.
Other intangible assets, including patents and trademarks, that are acquired by the group and have
finite useful lives are measured at cost less accumulated amortisation and any accumulated
impairment losses (see note 1(n)).
Expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
Amortisation is calculated to write off the cost of intangible assets less their estimated residual values
using the straight-line method over their estimated useful lives, if any, and is generally recognised in
profit or loss.
The estimated useful lives for the current and comparative periods are as follows:
Capitalised development costs
Patents and trademarks
5 years
5 to 10 years
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted
if appropriate.
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Due to the restrictive conditions for the recognition of development expenditure, some entities may consider that the following
wording for the accounting policy would be more appropriate to their circumstances:
"Research and development costs comprise all costs that are directly attributable to research and development activities or that can
be allocated on a reasonable basis to such activities. Because of the nature of the group's research and development activities, the
criteria for the recognition of such costs as an asset are generally not met until late in the development stage of the project when the
remaining development costs are immaterial. Hence both research costs and development costs are generally recognised as
expenses in the period in which they are incurred."
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