Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKAS 24.18
36
MATERIAL RELATED PARTY TRANSACTIONS 288, 289
(a)
Key management personnel remuneration
HKAS 24.17
Remuneration for key management personnel of the group, including amounts paid to the company's
directors as disclosed in note 7 and certain of the highest paid employees as disclosed in note 8, is as
follows:290
Short-term employee benefits
Post-employment benefits
Equity compensation benefits
Total remuneration is included in "staff costs" (see note 5(b)).
2023
2022
$'000
$'000
8,624
7,755
853
781
485
585
9,962
9,121
HKAS 24.18-24
288
HKAS 24.25 -27
289
Paragraph 18 of HKAS 24 states that if there have been transactions between related parties, an entity shall disclose the nature of
the related party relationships as well as information about the transactions and outstanding balances, including commitments,
necessary for an understanding of the potential effect of the relationship on the financial statements. Paragraph 18 of HKAS 24
specifies certain information that the disclosures should include as a minimum. This list includes the amount of the transactions,
the outstanding balances and commitments and their terms and conditions, and loss allowances. Pricing policies are not required to
be disclosed and paragraph 23 of HKAS 24 warns that disclosures that related party transactions were made on terms equivalent to
those that prevail in arm's length transactions are only made if such terms can be substantiated.
The disclosures are generally made in amongst other notes (for example, loans to related parties are often disclosed in the notes
relating to non-current financial assets) or in a separate note on related party transactions. As with all HKFRSS, HKAS 24's
requirements apply where the effect would be material. Judgement is therefore required in deciding the extent to which
transactions are disclosed and, if the transactions are disclosed, whether those disclosures are made individually or on an
aggregated basis. Paragraph 19 of HKAS 24 specifies that the disclosures should be at least disaggregated by type of related party
i.e. transactions with parents should be shown separately from transactions with associates or key management personnel, for
example. Where applicable, listed issuers should also take care to follow the requirements of Chapter 14A of the MBLRS concerning
approval and disclosure of connected transactions. See also footnote 291.
HKAS 24 provides relief to government-related entities from the general disclosure requirements for related party disclosures in
respect of transactions with the government to which they are related or with parties related to the same government. If entities
take advantage of this relief, they need to provide alternative disclosures as set out in paragraph 26 of HKAS 24. These alternative
disclosures require entities to apply judgement to assess whether a transaction with these other government-related entities is
individually or collectively significant enough to be disclosed in the financial statements and if so, whether the disclosure should be
quantitative or qualitative. In applying judgement, the entities should consider the closeness of the related party relationship and
other factors relevant in establishing the level of significance of the transaction, such as whether it is significant in terms of size,
carried out on non-market terms and/or outside normal day-to-day business operations. Government-related entities are not
exempt from the general disclosure requirements in HKAS 24 so far as transactions with other related parties are concerned. For
example, they are still required to disclose details of key management personnel compensation (see footnote 290). Please talk to
your usual KPMG contact if you would like further guidance in this respect.
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