Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
27
LEASE LIABILITIES
A16(22)
HKFRS 16.58
230
HKFRS 7.39(a)
A16(22)
HKAS 1.71
A16(26)(2)
HKAS 19.135
HKAS 19.139
HK Listco Ltd
Financial statements for the year ended 31 December 2023
At 31 December 2023, the lease liabilities were repayable as follows 230.
Within 1 year
After 1 year but within 2 years
After 2 years but within 5 years
After 5 years
2023
2022
$'000
$'000
21,329
15,271
20,974
15,289
24,166
34,501
3,823
3,412
48,963
53,202
70,292
68,473
Under HKFRS 16, entities need to disclose a maturity analysis of lease liabilities by applying paragraphs 39 and B11 of HKFRS 7
separately from the maturity analysis of other financial liabilities (see note 33(b)). Similar to other disclosure requirements under
HKFRS 7, the standard does not specify the format of the information required, for example, the number of time bands to be used in
the maturity analysis (although suggested time bands are set out in paragraph B11 of HKFRS 7). Entities should use their judgement to
determine what is appropriate in view of their circumstances and with due regard to the information provided internally to key
management personnel.
However, listed entities are required by paragraph 22 of Appendix 16 to analyse their lease liabilities between amounts payable in the
next year, amounts payable after one year but within two years, amounts payable after two years but within five years and aggregate
amounts payable after five years, from the end of the reporting period, at a minimum.
Under paragraph 71 of HKAS 1, a long-term financial liability is split into current and non-current portions. For financial liabilities that
require periodic payments that are applied against both the principal and interest (sometimes referred to as 'amortising loans') like
lease liabilities, HKFRS does not provide specific guidance on splitting the current and non-current portions. In our view, an acceptable
policy is to determine the current portion as the present value of contractual payments that are due to be settled within twelve
months after the reporting period, as is illustrated here. Alternatively, the current portion could be determined as the principal portion
of contractual payments that are due to be settled within twelve months after the reporting period. Whichever policy is adopted, it
should be applied consistently for all financial liabilities and from one period to the next, to the extent that the effect would be
material.
231 In accordance with paragraph 26(2) of Appendix 16 to the MBLRS, a listed issuer is required to provide the following information in
the case of defined contribution schemes:
•
details of whether forfeited contributions may be used by the employer to reduce the existing level of contribution; and
• if so, the amounts so utilised in the course of the year and available at the date of statement of financial position for such use.
Common examples of defined contribution schemes in China include the MPF schemes under the Hong Kong Mandatory Provident
Fund Schemes Ordinance and the social insurance and housing funds operated by the relevant government authorities in Chinese
Mainland. Usually, contributions to these schemes vest immediately, and there would not be forfeited contributions that may be
used by the employer to reduce the existing level of contribution. If an entity operates a defined contribution scheme with
forfeitable contributions, further details of the forfeited contributions should be disclosed.
232 HKAS 19 sets out the following objectives for disclosures about defined benefit plans of an entity:
to explain the characteristics of its defined benefit plans and risks associated with them;
•
to identify and explain the amounts in its financial statements arising from its defined benefit plans; and
. to describe how its defined benefit plans may affect the amount, timing and uncertainty of the entity's future cash flows.
Paragraphs 139 to 150 of HKAS 19 lists out the disclosures required by the standard. However, paragraph 137 of HKAS 19 explicitly
requires that if the disclosures provided in accordance with the requirements in the standard and other HKFRSS are insufficient to
meet the above disclosure objectives, the entity should disclose additional information necessary to meet them.
233 Paragraph 139 of HKAS 19 lists out the disclosures required in respect of the characteristics of defined benefit plans and risks
associated with them, including:
•
the nature of the benefits provided by the plan;
.
a description of the regulatory framework in which the plan operates;
.
a description of any other entity's responsibilities for the governance of the plan, e.g. responsibilities of trustees or board
members of the plans;
•
a description of the risks to which the plan exposes the entity; and
•
a description of any plan amendments, curtailments and settlements.
Entities should consider the level of detail necessary to satisfy the disclosure requirements.
147
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