Investor Presentaiton

HKAS 1.51(a) HKAS 1.49 HKAS 7.46 HKFRS 7.21 (s) Cash and cash equivalents HKFRS 7.21 (t) HKFRS 7.21 HK Listco Ltd Financial statements for the year ended 31 December 2023 (u) Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other financial institutions, property pre-sale proceeds held by solicitors that are held for meeting short-term cash commitments, and other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition. 103 Bank overdrafts that are repayable on demand and form an integral part of the group's cash management are also included as a component of cash and cash equivalents for the purpose of the consolidated cash flow statement. Cash and cash equivalents are assessed for ECL (see note 1(n)(i)). Trade and other payables (other than refund labilities) Trade and other payables are initially recognised at fair value. Subsequent to initial recognition, trade and other payables are stated at amortised cost unless the effect of discounting would be immaterial, in which case they are stated at invoice amounts. Preference share capital The group's redeemable preference shares are classified as financial liabilities, because they bear non-discretionary dividends and are redeemable in cash by the holders. Non-discretionary dividends thereon are recognised as interest expense in profit or loss as accrued. Non-redeemable preference shares are classified as equity, because they bear discretionary dividends, do not contain any obligations to deliver cash or other financial assets and do not require settlement in a variable number of the group's equity instruments. Discretionary dividends thereon are recognised as equity distributions on approval by the company's shareholders. Interest-bearing borrowings Interest-bearing borrowings are measured initially at fair value less transaction costs. Subsequently, these borrowings are stated at amortised cost using the effective interest method. Interest expense is recognised in accordance with note 1(cc). HKFRS 7.21 (v) 103 In order for instruments, such as wealth management products, to be included as "cash equivalents" for the purposes of the cash flow statement, it is necessary for the instruments to satisfy both of the following criteria: i. ii. The instrument needs to be a "short-term, highly liquid investment that is readily convertible into known amounts of cash and which is subject to an insignificant risk of changes in value, having been within three months of maturity at acquisition"; and The instrument needs to be held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. This cash flow statement classification is not dependent on whether the instruments pass or fail the "solely payments of principal and interest" test. Therefore, instruments included in "cash and cash equivalents" could be measured at either amortised cost or FVPL and similarly, instruments excluded from "cash and cash equivalents" could also be measured at either amortised cost or FVPL, depending on the characteristics of the instrument and the reason for holding it. 65 © 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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