Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKAS 1.117-117E
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Amendments to HKAS 1, Presentation of financial statements and HKFRS Practice Statement 2, Making materiality judgements:
Disclosure of accounting policies, which are effective for annual periods beginning on or after 1 January 2023, clarify that an entity
is required to disclose its "material" rather than "significant" accounting policy and provides guidance on applying the concept of
materiality to accounting policy disclosure.
Accounting policy information is material if, when considered together with other information included in the entity's financial
statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements
make on the basis of those financial statements. Paragraph 117B of HKAS 1 further explains that accounting policy information is
likely to be material if that information relates to material transactions, other events or conditions and:
(a) the entity changed its accounting policy during the reporting period which resulted in material change to the information in
the financial statements;
(b)
the entity chose the accounting policy from one or more options permitted by HKFRSS;
(c)
(d)
(e)
accounting policy was developed in accordance with HKAS 8 in the absence of a HKFRS that specifically applies;
the accounting policy related to an area for which the entity is required to make significant judgements or assumptions in
applying an accounting policy, and the entity discloses those judgements or assumption in accordance with paragraphs 122
and 125 of HKAS 1; or
the accounting required for them is complex and users of the entity's financial statements would otherwise not understand
those material transactions, other events or conditions, for example if the entity applies more than one HKFRS to a class of
material transactions.
In addition, paragraph 117C of HKAS 1 states that accounting policy information that focuses on how an entity has applied the
requirements of the HKFRSS to its own circumstances provides entity-specific information that is more useful to users of financial
statements than standardised information, or information that only duplicates or summarises the requirements of HKFRSS.
To assist users of this Guide, we have included accounting policy notes that cover a wide range of transactions and circumstances.
Not all of these policies will be material to an individual entity's circumstances. Conversely, there may be other policies which an
entity needs to disclose as a result of transactions it has entered into, or policy choices it has made, which are not illustrated here.
Care should be taken to meet the requirements of HKAS 1 to disclose material accounting policy information.
In addition, when other HKFRSS specifically require the policy for the topic in question to be disclosed, we have given the
references to the disclosure requirements in the left hand column (see, for example, policy note 1(o) which has a reference to
paragraph 36(a) of HKAS 2). See Appendix A to this Guide for a full index of the accounting policies illustrated here.
For additional guidance of this amendment, please refer to the talkbook produced by KPMG's International Standards Group.
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For listed companies that are not incorporated under the CO, the word "disclosure" is normally inserted before the words
"requirements of the Hong Kong Companies Ordinance".
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