Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
HKAS 40.75(a)
HKAS 16.73(a)
HKAS 16.73(a)
Financial statements for the year ended 31 December 2023
HKAS 16.73(b) & (c)
When the hedged forecast transaction subsequently results in the recognition of a non-financial
item such as inventory, the amount accumulated in the hedging reserve is removed from the
reserve and is included directly in the initial cost of the non-financial item when it is recognised.
For all other hedged forecast transactions, the amount accumulated in the hedging reserve is
reclassified through OCI to profit or loss as a reclassification adjustment in the same period or
periods during which the hedged expected future cash flows affect profit or loss. If the hedge no
longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is
terminated or is exercised, then hedge accounting is discontinued prospectively. When hedge
accounting is discontinued, the amount that has been accumulated in the hedging reserve
remains in equity until the transaction occurs and it is recognised in accordance with the above
policy.
If the hedged future cash flows are is no longer expected to occur, then the amounts that have
been accumulated in the hedging reserve is immediately reclassified through OCI to profit or loss.
(ii)
Hedge of net investments in foreign operations
The effective portion of any foreign exchange gains or losses on the borrowings is recognised in
OCI and presented in the exchange reserve within equity. Any ineffective portion is recognised
immediately in profit or loss. The amount accumulated in the exchange reserve is fully or partially
reclassified through OCI to profit or loss as a reclassification adjustment on disposal or partial
disposal of the foreign operation, respectively.
(j)
Investment property
(k)
Investment property is initially measured at cost, and subsequently at fair value with changes therein
recognised in profit or loss.
Any gain or loss on disposal of investment property is recognised in profit or loss. Rental income from
investment properties is recognised in accordance with note 1(aa)(ii)(a).
Property, plant and equipment
The following properties held for own use are stated at their revalued amount, being their fair value at
the date of the revaluation less any subsequent accumulated depreciation:
-
freehold land and buildings; and
interests in leasehold land and buildings where the group is the registered owner of the property
interest (see note 1(m)).
The following items of property, plant and equipment are stated at cost, which includes capitalised
borrowing costs, less accumulated depreciation and any accumulated impairment losses (see note
1(n)):
right-of-use assets arising from leases over freehold or leasehold properties where the group is not
the registered owner of the property interest; and
items of plant and equipment, including right-of-use assets arising from leases of underlying plant
and equipment (see note 1(m)).
If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components).
Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss.
Any related revaluation surplus is transferred from the revaluation reserve to retained profits and is
not reclassified to profit or loss.
Depreciation is calculated to write off the cost or valuation of items of property, plant and equipment
less their estimated residual values, if any, using the straight line method over their estimated useful
lives, and is generally recognised in profit or loss.
52
© 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