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HKAS 1.51(a) HKAS 1.49 HK Listco Ltd Financial statements for the year ended 31 December 2023 24 TRADE AND OTHER PAYABLES223 HKAS 1.77 2023 $'000 2022 $'000 Bills payable Creditors and accrued charges 91,705 73,859 59,708 60,648 HKAS 24.18(b) Amounts due to ultimate holding company 2,000 1,800 HKAS 24.18(b) Amounts due to fellow subsidiaries 3,650 3,780 HKFRS 7.8(g) Financial liabilities measured at amortised cost 157,063 140,087 HKAS 1.61 A16(4)(2)(b) HKAS 1.54, 55 & 57 Refund liabilities 224. arising from right of return arising from volume rebates 1,614 1,350 1,936 1,770 160,613 143,207 Apart from those mentioned in note 20, all trade and other payables (including amounts due to related parties) are expected to be settled or recognised as income within one year or are repayable on demand 202 As of the end of the reporting period, the ageing analysis of trade creditors and bills payable (which are included in trade and other payables), based on the invoice date, is as follows 212: Within 1 month 1 to 3 months Over 3 months but within 6 months 2023 2022 $'000 $'000 96,434 87,435 52,114 45,962 1,543 1,106 150,091 134,503 223 Paragraph 11(a) of HKAS 37 states that trade payables are liabilities to pay for goods or services that have been received or supplied and have been invoiced or formally agreed with the supplier. Paragraph 70 of HKAS 1 further indicates that trade payables are part of the working capital used in the entity's normal operating cycle. 224 In the statement of financial position, other payables are aggregated with trade payables and presented as a single line item "trade and other payables" only when those liabilities have a similar nature and function to trade payables - for example, when those liabilities are part of the working capital used in the entity's normal operating cycle. Additionally, paragraph 55 of HKAS 1 indicates that disaggregation of "trade and other payables" may be appropriate if this is relevant to an understanding of the entity's financial position. Paragraphs 54 and 57 of HKAS 1 indicate that "trade and other payables" are sufficiently different in nature or function from other financial liabilities (e.g. bank loans) that warrant separate presentation in the statement of financial position. In this illustration, HK Listco issues bills of exchange to its suppliers to facilitate payment processing and to allow its suppliers sell the bills to banks before the due dates. Although the counterparty of the bills payable may not be the original suppliers by the time HK Listco settles the amounts, HK Listco has considered the amounts, nature and timing of the bills payable and has determined that the bills payable have a similar nature and function to its trade payables - relevant consideration includes the fact that the payment terms have not been substantially changed as compared to the normal credit terms granted by suppliers, and that it did not incur any additional interest towards the bill. Accordingly, HK Listco has included the bills payable as part of "trade and other payables". As is illustrated in note 26(c), HK Listco is involved in a supplier finance arrangement where the nature or function of the liability. which originated from purchase of goods or services (in that case a payable to a bank) is so different from the original trade payable that presenting the liability as part of "bank loans and overdrafts" rather than as part of "trade and other payables" is more appropriate (see footnote 227). In this illustration, HK Listco considers that its refund liabilities arising from sales transactions with the customers are executory in nature as they are dependent on whether the customers return the goods or make additional purchases in future. Therefore the refund liabilities do not meet the definition of a financial liability in HKAS 32. If a refund liability or a liability related to a repurchase agreement meets the definition of a financial liability in HKAS 32, then it is subject to the disclosure requirements in HKFRS 7. 142 © 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.

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