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
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