Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
(ii) Interest rate risk profile 277
HKFRS 7.34 & 35
The following table, as reported to the management of the group, details the interest rate risk profile
of the group's borrowings at the end of the reporting period:
Fixed rate borrowings:
Lease liabilities
Bank loans
Unsecured debentures
Interest rate swap
Notional amount
2023
2022
$'000
$'000
70,292
68,473
40,986
46,432
5,000
5,000
116,278
119,905
40,000
156,278
40,000
159,905
Variable rate borrowings:
Bank overdrafts
1,266
2,789
Bank loans
43,054
43,483
Loans from fellow subsidiaries
2,665
906
Loans from non-controlling shareholders of a subsidiary
3,000
3,000
49,985
50,178
Interest rate swap
Net exposure
HKFRS 7.40
(iii)
Sensitivity analysis 278
HKFRS 7.40(a)
HKFRS 7.40(b)
HKFRS 7.40(c)
HKFRS 7.34 & 35
(40,000)
9,985
(40,000)
10,178
At 31 December 2023, it is estimated that a general increase/decrease of [•] basis points in interest
rates, with all other variables held constant, would have decreased/increased the group's profit after
tax and retained profits by approximately $[•] (2022: $[•]). Other components of consolidated
equity would have increased/decreased by approximately $[•] (2022: $[•]) in response to the
general increase/decrease in interest rates.
The sensitivity analysis above indicates the instantaneous change in the group's profit after tax (and
retained profits) and other components of consolidated equity that would arise assuming that the
change in interest rates had occurred at the end of the reporting period and had been applied to re-
measure those financial instruments held by the group which expose the group to fair value interest
rate risk at the end of the reporting period. In respect of the exposure to cash flow interest rate risk
arising from floating rate non-derivative instruments held by the group at the end of the reporting
period, the impact on the group's profit after tax (and retained profits) and other components of
consolidated equity is estimated as an annualised impact on interest expense or income of such a
change in interest rates. The analysis is performed on the same basis as 2022.
277 As explained above in footnote 267, HKFRS 7 takes primarily a management approach to the disclosure of quantitative risk
information. Therefore, the extent and format of disclosure may vary from one entity to the next, depending on what
information is used internally by key management personnel to monitor interest rate risk.
178
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