Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
(e)
Income from financial guarantees issued
HK Listco Ltd
Financial statements for the year ended 31 December 2023
Income from financial guarantees issued is recognised over the term of the guarantees (see note
1(n)(ii)).
(bb) Translation of foreign currencies
Transactions in foreign currencies are translated into the respective functional currencies of group
companies at the exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional
currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are
measured at fair value in a foreign currency are translated into the functional currency at the exchange
rate when the fair value was determined. Non-monetary assets and liabilities that are measured based
on historical cost in a foreign currency are translated at the exchange rate at the date of the
transaction. Foreign currency differences are generally recognised in profit or loss.
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However, foreign currency differences arising from the translation of the following items are
recognised in OCI:
an investment in equity securities designated as at FVOCI;
a financial liability designated as a hedge of the net investment in a foreign operation to the
extent that the hedge is effective (see note 1(i)(ii)); and
qualifying cash flow hedges to the extent that the hedges are effective (see note 1(i)).
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated into Hong Kong dollars at the exchange rates at the reporting date. The
income and expenses of foreign operations are translated into Hong Kong dollars at the exchange rates
at the dates of the transactions.
Foreign currency differences are recognised in OCI and accumulated in the exchange reserve, except to
the extent that the translation difference is allocated to NCI.
When a foreign operation is disposed of in its entirety or partially such that control, significant
influence or joint control is lost, the cumulative amount in the exchange reserve related to that foreign
operation is reclassified to profit or loss as part of the gain or loss on disposal. On disposal of a
subsidiary that includes a foreign operation, the cumulative amount of the exchange differences
relating to that foreign operation that have been attributed to the NCI shall be derecognised, but shall
not be reclassified to profit or loss. If the group disposes of part of its interest in a subsidiary but
retains control, then the relevant proportion of the cumulative amount is reattributed to NCI. When
the group disposes of only part of an associate or joint venture while retaining significant influence or
joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.
(cc) Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of an asset
which necessarily takes a substantial period of time to get ready for its intended use or sale are
capitalised as part of the cost of that asset. Other borrowing costs are expensed in the period in which
they are incurred.
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