Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
HKFRS 15.114,
B89
Financial statements for the year ended 31 December 2023
114
115
Revenue, as defined in Appendix A of HKFRS 15, is income that arises in the course of the ordinary activities of an entity. Other income,
i.e. income that does not arise in the course of the ordinary activities of the entity, is reported separately from revenue. For this reason,
HK Listco has in this illustration included rental income from investment properties within its measure of revenue, as holding properties
for rental to others is regarded as one of the group's ordinary activities, while income from other investments is disclosed in note 4 as
"Other income".
Paragraph 114 of HKFRS 15 requires an entity to disaggregate revenue recognised from contracts with customers into categories that
depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The extent to which
an entity's revenue is disaggregated for the purposes of this disclosure depends on the facts and circumstances of the entity's contracts
with customers. Some entities may need to use more than one type of category to meet the disaggregation objective in paragraph 114
of HKFRS 15.
Examples of categories that might be appropriate include, but are not limited to, the following:
type of good or service, i.e. major products or service lines;
•
geographic region, i.e. countries or regions;
market or types of customer, i.e. wholesale or retails, government or non-government;
•
type of contract, i.e. fixed-price or cost-plus;
•
contract duration, i.e. short-term or long-term;
•
timing of revenue recognition, i.e. at a point in time or over time;
HKFRS 8.31-34
HKFRS 15.115
HKFRS 15.113(a),
HKFRS 16.90(b)
• sales channel, i.e. directly to consumers or through intermediaries.
Entities who are listed are required to provide certain disaggregated revenue information as HKFRS 8 requires disclosure of certain
information about an entity's products and services, geographical areas and major customers, even if the entity has only one reportable
segment. These minimum disclosures, referred to as "entity-wide disclosures" in HKFRS 8, should be based on the financial information
that is used to produce the entity's financial statements (i.e. the disclosure is not based on the management approach, which is
otherwise used in disclosing segment information). The disclosures are required only if they are not provided as part of the reportable
segment information required by HKFRS 8.
Paragraph 112 of HKFRS 15 states that an entity need not disclose information in accordance with HKFRS 15 if it has provided the
information in accordance with another standard. Therefore, it is a question of judgement as to what extent the HKFRS 8 and HKFRS 15
disclosures should be presented together.
In this illustration, HK Listco has included information on its products and services and major customers in note 3(a) "Revenue", while
additional geographic information has been provided in the segment analysis and additional entity-wide disclosures in note 3(b)
"Segment reporting" in order to satisfy HKFRS 8. For the purposes of satisfying HKFRS 15, in the segment disclosure table in note 3(b),
HK Listco has provided the analysis of revenue in each segment between those contracts where revenue is recognised at a point in time
and those where revenue is recognised over time.
Other approaches to disclosing this information are acceptable provided they meet the basic disclosure requirement of paragraph 113
of HKAS 1, to present notes in a systematic manner.
In addition, if an entity applies HKFRS 8, paragraph 115 of HKFRS 15 requires sufficient information to be disclosed to enable users of
financial statements to understand the relationship between the disclosure of disaggregated revenue and revenue information that is
disclosed for each reportable segment. In HK Listco's financial statements:
• the narrative descriptions of the various segments in note 3(b) help the reader to reconcile the entity-wide disclosures given by
product and service in note 3(a) with the segment information in the segment disclosure table in note 3(b); and
both the separate line items and totals in the segment disclosure table and the reconciliation in note 3(b)(ii) show the reader that
the only differences between segment revenue and reported revenue arise due to the inclusion of inter-segment sales in the
segment analysis.
As this information is considered sufficient to enable users of financial statements to understand the relationship between the
disclosure of disaggregated revenue and revenue information that is disclosed for each reportable segment, no additional information
has been illustrated to specifically satisfy paragraph 115 of HKFRS 15.
116 Paragraph 113(a) of HKFRS 15 requires revenue recognised from contracts with customers and from other sources to be disclosed
separately, either in the statement of comprehensive income or in the notes. In effect, this means that for the purposes of satisfying
this disclosure requirement, an entity's revenue should be split between that which falls within the scope of HKFRS 15 and that which
falls under other standards. This is illustrated here by disclosing rental income from investment property separately from the group's
other revenue, as rental income arising under leases falls within the scope of HKFRS 16 rather than HKFRS 15. The income has been
further analysed between variable lease payments that do not depend on an index or a rate and other lease income as required by
paragraph 90(b) of HKFRS 16.
HKFRS 15.112
117
As allowed by HKFRS 15, an entity need not disclose information in accordance with HKFRS 15 if it has provided the information in
accordance with other standards.
In this illustration, the information about geographical location of revenue from external customers provided under HKFRS 8 (see note
3(b)(iii)) also satisfies the disclosure requirement in paragraph 114 of HKFRS 15 for disaggregation of revenue. Hence, HK Listco has
made cross reference to the corresponding note.
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