Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
R17.07(1)(c)
(iii)
(iv)
Share-based payments
The grant-date fair value of equity-settled share-based payments granted to employees is measured
using the binomial lattice model. The amount is generally recognised as an expense, with a
corresponding increase in equity, over the vesting period of the awards. The amount recognised as
an expense is adjusted to reflect the number of awards for which the related service conditions are
expected to be met, such that the amount ultimately recognised is based on the number of awards
that meet the related service conditions at the vesting date.
Termination benefits
Termination benefits are expensed at the earlier of when the group can no longer withdraw the offer
of those benefits and when the group recognises costs for a restructuring.
(y)
Income tax
Income tax expense comprises current tax and deferred tax. It is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or in
OCI.
Current tax comprises the estimated tax payable or receivable on the taxable income or loss for the
year and any adjustments to the tax payable or receivable in respect of previous years. The amount
of current tax payable or receivable is the best estimate of the tax amount expected to be paid or
received that reflects any uncertainty related to income taxes. It is measured using tax rates enacted
or substantively enacted at the reporting date. Current tax also includes any tax arising from
dividends.
Current tax assets and liabilities are offset only if certain criteria are met.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
temporary differences on the initial recognition of assets or liabilities in a transaction that is not
a business combination and that affects neither accounting nor taxable profit or loss and does
not give rise to equal taxable and deductible temporary differences;
temporary differences related to investment in subsidiaries, associates and joint venture to the
extent that the group is able to control the timing of the reversal of the temporary differences
and it is probable that they will not reverse in the foreseeable future;
taxable temporary differences arising on the initial recognition of goodwill; and
those related to the income taxes arising from tax laws enacted or substantively enacted to
implement the Pillar Two model rules published by the Organisation for Economic Co-operation
and Development.104
The group recognised deferred tax assets and deferred tax liabilities separately in relation to its lease
liabilities and right-of-use assets.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. Future taxable profits are determined based on the reversal of
relevant taxable temporary differences. If the amount of taxable temporary differences is insufficient
to recognise a deferred tax asset in full, then future taxable profits, adjusted for reversals of existing
temporary differences, are considered, based on the business plans for individual subsidiaries in the
group. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it
is no longer probable that the related tax benefit will be realised; such reductions are reversed when
the probability of future taxable profits improves.
HKAS 12.88A-88D
104 Paragraph 4A of HKAS 12 requires a temporary mandatory exception from deferred tax accounting for the income tax arising from
tax laws enacted or substantively enacted to implement the Pillar Two model rules published by the OECD, including tax laws that
implement qualified domestic minimum top-up taxes described in those rules. If an entity expects to be impacted by these new tax
laws, paragraphs 88A to 88D of HKAS 12 contain specific disclosure requirements. See note 6(c) and footnote 147 for further details
of the disclosure requirements.
68
© 2023 KPMG, a Hong Kong partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"),
a private English company limited by guarantee. All rights reserved.View entire presentation