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Investor Presentaiton

HKAS 1.51(a) HKAS 1.49 HKFRS 16.92, 95 (e) Machinery leased out under operating leases HK Listco Ltd Financial statements for the year ended 31 December 2023 $'000 Cost: At 1 January 2022, 31 December 2022 and 31 December 2023 2,100 Accumulated depreciation: At 1 January 2022 Charge for the year At 31 December 2022 At 1 January 2023 Charge for the year At 31 December 2023 Net book value: At 31 December 2023 At 31 December 2022 HKFRS 16.97 HKAS 16.79(a) (f) The group leases out a number of items of machinery under operating leases. The leases typically run for an initial period of (●) to (●) years, with an option to renew the lease after that date at which time all terms are renegotiated. None of the leases includes variable lease payments. Undiscounted lease payments under non-cancellable operating leases in place at the reporting date will be receivable by the group in future periods are $450,000 per annum in the next two years (2022: $450,000 per annum in the next three years). Where practicable, the group obtains residual value guarantees from the lessee to reduce the residual asset risk. 178 Temporarily idle property, plant and equipment At 31 December 2023, plant and equipment with a carrying amount of $12,450,000 were temporarily idle because of a suspension of a production line. The group plans to introduce new products and operate the assets in 2024. HKFRS 16.92(a)&(b) 210 210 420 420 210 630 1,470 1,680 178 Paragraph 92 of HKFRS 16 requires a lessor to disclose additional qualitative and quantitative information about its leasing activities necessary to meet the disclosure objective in paragraph 89 of HKFRS 16 - disclosing information that gives a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of the lessor. In particular, it requires additional information about how the lessor manages the risk associated with any rights it retains in underlying assets. A lessor needs to disclose its risk management strategy for the rights it retains in underlying asset, including any means by which it reduces that risk (e.g. buy-back agreements, residual value guarantees and variable lease payments). 113 © 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.
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