Investor Presentaiton
References
Where the HKFRSS, HKCO or MBLRs state that a specific item should be disclosed, references to the relevant
paragraphs are provided. For example, the reference "HKAS 1.10(b)" is given at the start of the consolidated
statement of profit or loss and other comprehensive income as paragraph 10(b) of HKAS 1 specifies that a
complete set of financial statements should include such a statement. We have used "CP" to indicate
disclosures that, while not required, are common practice or, in our view, are likely to be considered best
practice.
The information which is only required to be disclosed in the directors' report or the financial statements
of a listed company or group is highlighted by the use of black italics (see for example, the information on
major customers and suppliers given on page 13).
Materiality
Materiality is relevant to the presentation and disclosure of items in the financial statements. Information is
material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the
primary users of general purpose financial statements make on the basis of those financial statements,
which provide financial information about a specific reporting entity.
In accordance with paragraph 31 of HKAS 1, an entity need not provide a specific disclosure required by a
HKFRS if the information resulting from that disclosure is not material. This is the case even if the HKFRS
contains a list of specific requirements or describes them as "minimum requirements". On the other hand,
paragraph 17 of HKAS 1 indicates that an entity should consider whether it needs to provide disclosures in
addition to those specifically required by a HKFRS to help users understand the impact of a particular
transaction or event on the entity's financial position and financial performance. In addition, obscuring
material information with immaterial information in financial statements will make the financial statements
less understandable. HKFRS Practice Statement 2, Making materiality judgements, provides guidance and
examples on applying materiality in preparing financial statements.
In addition, the amendments to HKAS 1, Disclosure of accounting policies, which are effective from 1 January
2023, require disclosures of "material" rather than "significant" accounting policy information. The updated
HKFRS Practice Statement 2 issued along with the amendments to HKAS 1 includes further guidance and
examples on applying the principles of materiality to accounting policy disclosures. See further details in
footnote 80.
In this illustrative annual report, we have included example accounting policy disclosures that cover a wide
range of transactions and circumstances, and monetary amounts some of which are very small. These
accounting policy disclosures and numbers are included to assist users of this Guide and to illustrate the
relationship between different captions and between the primary statements and the notes. They are not
intended to illustrate the principle of materiality; therefore these disclosures and numbers, in and of
themselves, should not be relied on as a guide to materiality judgement and minimum levels of disclosures.
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