Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
Retail stores - Hong Kong
Retail stores Hong Kong
2023
Variable COVID-19 rent
Fixed payments
payments
$'000
$'000
concessions
$'000
Total payments
$'000
2,400
1,560
3,960
2022
Fixed payments
$'000
Variable
payments
$'000
COVID-19 rent
concessions
$'000
Total payments
$'000
2,400
1,760
(380)
3,780
HKFRS 16.59(a), (b)
HKFRS 16.92
HKFRS 16.97
At 31 December 2023, it is estimated that an increase in sales generated from these retail stores by
5% would have increased the lease payments by $198,000 (2022: $208,000).
(iii) Other leases
The group leases production plant, machinery and office equipment under leases expiring from [•] to
[•] years. Some leases include an option to renew the lease when all terms are renegotiated, while
some include an option to purchase the leased equipment at the end of the lease term at a price
deemed to be a bargain purchase option. None of the leases includes variable lease payments.
(d) Investment property
The group leases out investment property under operating leases. The leases typically run for an
initial period of [●] to [●] years, with an option to renew the lease after that date at which time all
terms are renegotiated. Lease payments are usually increased every [•] years to reflect market
rentals. Certain leases include variable lease payment terms that are based on the revenue of
tenants.
Undiscounted lease payments under non-cancellable operating leases in place at the reporting date
will be receivable by the group in future periods as follows¹77:
HKFRS 16.94 &
97
HKAS 1.113
2023
2022
$'000
$'000
Within 1 year
After 1 year but within 2 years
9,780
7,600
8,360
6,280
After 2 years but within 3 years
8,360
6,280
After 3 years but within 4 years
6,800
6,280
After 4 years but within 5 years
After 5 years
6,800
4,720
10,250
7,970
50,350
39,130
177 Paragraphs 94 and 97 of HKFRS 16 requires an entity to disclose the maturity analysis of undiscounted lease payments to be received
on an annual basis for a minimum of each of the first five years following the reporting date and a total of the amounts for the
remaining years.
The above disclosure could alternatively be presented together with information about revenue from remaining performance
obligations as required by paragraph 120 of HKFRS 15 as both disclosures relate to revenue under contracts existing as at the end of
the reporting period that is expected to be recognised in the future. In HK Listco's financial statements, this disclosure may be found
in note 3(a).
112
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