Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HKAS 1.10(e), 51(d),
112 & 113
HK Listco Ltd
Financial statements for the year ended 31 December 2023
Notes to the financial statements"
(Expressed in Hong Kong dollars unless otherwise indicated) 78, 79
HKAS 1.117-117E
Sch 4, Part 1,
Section 4(a)
HKAS 1.16
A16(5)
1 MATERIAL ACCOUNTING POLICIES 80
(a) Statement of compliance
These financial statements have been prepared in accordance with all applicable Hong Kong Financial
Reporting Standards ("HKFRSS"), which collective term includes all applicable individual Hong Kong
Financial Reporting Standards, Hong Kong Accounting Standards ("HKASS") and Interpretations issued by
the Hong Kong Institute of Certified Public Accountants ("HKICPA") and the requirements of the Hong
Kong Companies Ordinance 81. These financial statements also comply with the applicable disclosure
provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
Material accounting policies adopted by the group are disclosed below.
The HKICPA has issued certain amendments to HKFRSS that are first effective or available for early
adoption for the current accounting period of the group. Note 1(c) provides information on any changes
in accounting policies resulting from initial application of these developments to the extent that they are
relevant to the group for the current accounting period reflected in these financial statements.
HKAS 1.113
HKAS 1.114
77
HKAS 21.53-57
78
HKAS 1.51(e) & 53
79
HKAS 1 requires that notes shall, as far as practicable, be presented in a systematic manner. In determining a systematic manner, an
entity should consider the effect on the understandability and comparability of its financial statements. HKAS 1 provides the
following examples of systematic ordering or grouping of the notes:
(a) giving prominence to the areas of its activities that the entity considers to be most relevant to an understanding of its financial
performance and financial position, such as grouping together information about particular operating activities;
grouping together information about items measured similarly such as assets measured at fair value; or
(b)
(c)
following the order of the line items in the statement(s) of profit or loss and other comprehensive income and the statement
of financial position.
In this illustration, HK Listco generally follows approach (c) by presenting notes following the order of the line items in the primary
statements.
If the consolidated financial statements are presented in a currency different from the parent entity's functional currency, the entity
should disclose that fact, its functional currency and the reason for using a different presentation currency. In addition, if an entity
includes financial information in a presentation currency other than its functional currency, without complying with the
requirements of paragraph 55 of HKAS 21 (for example, where the entity translates only selected items of information, such as on
the face of the primary statements, for the convenience of the users of the financial statements), then it should clearly identify the
information as supplementary and should make the disclosures as required by paragraph 57 of HKAS 21 concerning this
supplementary information.
Paragraph 51(e) of HKAS 1 requires the level of rounding used in presenting amounts in the financial statements to be displayed
prominently and repeated where it is necessary for a proper understanding of the information presented. Paragraph 53 of HKAS 1
also notes that often financial statements may be made more understandable by presenting information in thousands or millions of
units of the presentation currency, and that this is acceptable, provided the level of rounding is disclosed and material information is
not omitted.
Generally, the financial statements should be prepared using a consistent level of precision throughout. That is, if the primary
statements are presented, for example, to the nearest 1,000, then any note disclosures which support the primary statements, such
as further analyses of income statement or balance sheet captions, would also generally be presented in round thousand amounts,
so as to exactly reconcile to the amounts disclosed in the primary statements. However, occasionally it may be appropriate to
present specific items of information in the financial statements using different levels of precision from that used generally.
For example, although HK Listco generally presents its financial statements in $'000, some note disclosures are presented in a lower
level of precision, due to the uncertainty surrounding the measurement of that item. For example, as illustrated in note 35(a) and
(b), when HK Listco is disclosing the estimated financial effect of pending law suits which are regarded as contingent
assets/liabilities, it has disclosed the estimate in $millions due to the uncertainties involved in estimating the outcome. The level of
precision used in such cases should be clearly disclosed in accordance with paragraph 51(e) of HKAS 1 and care should be taken to
ensure that material information is not omitted.
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