Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKAS 1.82(a)
HKAS 38.126-
127
51
In this illustration, HK Listco's interest income arises from bank deposits, loans to associates and refundable rental deposits. As HK
Listco does not consider such interest income as income arising in the course of its ordinary activities, it includes interest income as
part of "other income". If the interest income constituted part of income arising in the course of ordinary activities and therefore
"revenue", then paragraph 82(a) of HKAS 1 requires an entity to present interest revenue, calculated using the effective interest
method, separately from other sources of revenue.
52 In this illustration, HK Listco presents its expenses by function (see footnote 43), and regards "research and development" as a
separate function within the entity.
For research and development expenditure, an entity is required to disclose the aggregate amount recognised as an expense
during the period. Research and development expenditure comprises all expenditure that is directly attributable to research and
development activities. Paragraph 66 of HKAS 38 provides the following examples of directly attributable costs:
• costs of materials and services used or consumed in generating the intangible asset;
•
•
costs of employee benefits arising from the generation of the intangible asset;
fees to register a legal right; and
HKAS 1.82(ba)
HKAS 1.82
HKAS 1.82(b)
HKAS 33.4, 4A &
66
HKAS 1.IN16,
107, BC75
amortisation of patents and licences that are used to generate the intangible asset.
53 Paragraph 82(ba) of HKAS 1 requires an entity to present impairment losses (including reversals of impairment losses or
impairment gains) determined in accordance with HKFRS 9 as a single amount in the statement of profit or loss/the statement of
profit or loss and other comprehensive income.
54 In addition to the items separately presented in this illustration, paragraph 82 of HKAS 1 requires the following line items to be
presented as separate items on the face of the statement of profit or loss/the statement of profit or loss and other comprehensive
income:
•
•
gains and losses arising from the derecognition of financial assets measured at amortised cost;
if a financial asset is reclassified out of the amortised cost measurement category so that it is measured at fair value through
profit or loss, any gain or loss arising from a difference between the previous amortised cost of the financial asset and its fair
value at the reclassification date;
if a financial asset is reclassified out of the fair value through other comprehensive income measurement category so that it is
measured at fair value through profit or loss, any cumulative gain or loss previously recognised in other comprehensive
income that is reclassified to profit or loss.
These items have not been illustrated as HK Listco did not have events or transactions to be reflected in those line items during the
reporting period.
55 In accordance with paragraph 82(b) of HKAS 1, finance costs (including interest expense on the lease liability as stated in paragraph
49 of HKFRS 16) are required to be disclosed as a separate item on the face of the statement of profit or loss/the statement of
profit or loss and other comprehensive income. This amount should be stated gross, i.e. it should not be net of finance income,
although in our view an additional line item for "net finance costs" would be acceptable.
56 As stated in footnote 47, HKAS 1 allows entities to present comprehensive income using either a one-statement approach (i.e. a
single "statement of profit or loss and other comprehensive income") or a two-statement approach (i.e. a "statement of profit or
loss" together with a "statement of profit or loss and other comprehensive income"). HKAS 33 requires the presentation of basic
and diluted earnings per share in the separate statement of profit or loss if such a statement is presented or in the statement of
profit or loss and other comprehensive income if an entity opts for the single-statement approach.
In addition, where the entity has reported amounts relating to discontinued operations, basic and diluted earnings per share
amounts should be disclosed in the relevant statement for both (a) profit or loss from continuing operations attributable to the
parent entity and (b) profit or loss attributable to the parent entity (i.e. profit or loss including discontinued operations). Also, all
these disclosures shall be made separately for each class of ordinary share that has a different right to share in profit for the
period.
57 HKAS 1 does not permit an entity to disclose the amount of dividends to equity owners in either the statement of profit or loss or
the statement of profit or loss and other comprehensive income. Instead, as such dividends are an owner change in equity, they
are required to be reported in the statement of changes in equity or in the notes. However, as it has been common place to refer
to dividends in the statement of profit or loss, we expect that users will find useful a cross reference, such as is illustrated here, to
where details of the dividends can be found in the financial statements.
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