Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKAS 1.82A
HKAS 1.92-96
HKFRS
9.6.5.11(d)
HKAS 1.90-91
58 Entities are required to present the items of other comprehensive income that may be reclassified to profit or loss in the future
(e.g. the effective portion of a cash flow hedge that is recognised in other comprehensive income) separately from those that
would never be reclassified to profit or loss (e.g. revaluation surplus of property, plant and equipment).
Also, the items of other comprehensive income arising from equity accounted investments should be presented in aggregate in
two line items as follows:
•
.
the share of other comprehensive income of associates and joint ventures accounted for using the equity method that will
not be reclassified subsequently to profit or loss; and
the share of other comprehensive income of associates and joint ventures accounted for using the equity method that will be
reclassified subsequently to profit or loss.
In this illustration, HK Listco did not have any share of other comprehensive income of associates and joint ventures during the
reporting period.
Individual HKFRSS specify whether and when amounts that were previously recognised in other comprehensive income are
reclassified to profit or loss as follows:
• Items that will not be reclassified to profit or loss:
•
changes in the revaluation surplus recognised in respect of right-of-use assets under paragraph 35 of HKFRS 16, items of
property, plant and equipment recognised under paragraphs 39 and 40 of HKAS 16, or intangible assets under paragraphs
85 and 86 of HKAS 38;
remeasurements of net defined benefit liability (asset) under paragraphs 120(c), 127 to 130 of HKAS 19;
remeasurements of equity investments designated at fair value through other comprehensive income in accordance with
paragraph 5.7.5 of HKFRS 9;
Items that may be reclassified subsequently to profit or loss:
gains and losses arising from translating a monetary item that forms part of the net investment in a foreign operation and
from translating the financial statements of a foreign operation in accordance with paragraphs 32 and 39 of HKAS 21;
gains and losses on re-measuring debt investments in accordance with paragraph 4.1.2A of HKFRS 9;
the effective portion of gains and losses on hedging instruments in a cash flow hedge or hedge of a net investment in a
foreign operation in accordance with paragraphs 6.5.11(d) and 6.5.14 of HKFRS 9.
Reclassification adjustments are included with the related components of other comprehensive income in the period these
adjustments are reclassified to profit or loss. The adjustments should be either separately disclosed on the face of the statement of
profit or loss and other comprehensive income, or in the notes. In this illustration, the reclassification adjustments are presented
separately in note 9 to the financial statements, with the net amounts for each item of other comprehensive income being
presented in the statement of profit or loss and other comprehensive income.
In accordance with paragraph 6.5.11(d) of HKFRS 9, when (i) a hedged forecast transaction subsequently results in the recognition
of a non-financial asset or non-financial liability, or (ii) a hedged forecast transaction for a non-financial asset or non-financial
liability becomes a firm commitment for which fair value accounting is applied, an entity should remove that amount from the cash
flow hedge reserve and include it directly in the initial carrying amount of the asset or liability (i.e. a basis adjustment). Such
removal is not a reclassification adjustment under HKAS 1, and therefore does not impact other comprehensive income. In this
illustration, the basis adjustment is shown as a separate line item in the consolidated statement of changes in equity.
59 Entities are allowed to present the items of other comprehensive income on the face of the statement of profit or loss and other
comprehensive income either (i) net of related tax effects, or (ii) before related tax effects with the aggregate tax shown
separately. If alternative (ii) is elected, then the "aggregate" amount should be allocated between the items that may be
reclassified subsequently to profit or loss and those that will not be reclassified subsequently to profit or loss. Irrespective of the
approach taken, the entity should disclose the tax amount relating to each item of other comprehensive income in the notes, to
the extent that this information is not provided on the face of the statement of profit or loss and other comprehensive income.
In this illustration, HK Listco has taken the alternative (a), i.e. presenting the after-tax amounts in the statement of profit or loss
and other comprehensive income. Disclosure of the tax attributable to individual items of other comprehensive income is given in
note 9 to the financial statements.
60 As explained in footnote 58, HKAS 1 requires an entity to present the items of other comprehensive income that may be
reclassified to profit or loss in the future separately from those that would never be reclassified to profit or loss in the statement of
profit or loss and other comprehensive income. Although there are no such requirements for the statement of changes in equity, it
may be useful to specify whether the fair value reserves are recycling or not.
In this illustration, HK Listco only has equity instruments that are designated at FVOCI, for which the accumulated other
comprehensive income will not be reclassified to profit or loss (i.e. non-recycling). Accordingly, it has labelled the corresponding
fair value reserve as such.
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