Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HK Listco Ltd
Financial statements for the year ended 31 December 2023
HKFRS 7.35F(c)
HKFRS 7.35F(d)
The group considers a financial instrument to have low credit risk when its credit risk rating is
equivalent to the globally understood definition of 'investment grade'. The group considers this to be
or higher per [rating agency ✗] or [●] or higher per [rating agency Y].
ECLs are remeasured at each reporting date to reflect changes in the financial instrument's credit risk
since initial recognition. Any change in the ECL amount is recognised as an impairment gain or loss in
profit or loss. The group recognises an impairment gain or loss for all financial instruments with a
corresponding adjustment to their carrying amount through a loss allowance account, except for
investments in non-equity securities that are measured at FVOCI (recycling), for which the loss
allowance is recognised in OCI and accumulated in the fair value reserve (recycling) does not reduce
the carrying amount of the financial asset in the statement of financial position (see note 1(i)).
Credit-impaired financial assets
At each reporting date, the group assesses whether a financial asset is credit-impaired. A financial
asset is credit-impaired when one or more events that have a detrimental impact on the estimated
future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable events:
-
significant financial difficulties of the debtor;
HKFRS 7.35F(e)
-
a breach of contract, such as a default or being more than 90 days past due;
the restructuring of a loan or advance by the group on terms that the group would not consider
otherwise;
it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
the disappearance of an active market for a security because of financial difficulties of the
issuer.
Write-off policy
The gross carrying amount of a financial asset, lease receivable or contract asset is written off to the
extent that there is no realistic prospect of recovery. This is generally the case when the asset
becomes [•] days past due or when the group otherwise determines that the debtor does not have
assets or sources of income that could generate sufficient cash flows to repay the amounts subject to
the write-off.
Subsequent recoveries of an asset that was previously written off are recognised as a reversal of
impairment in profit or loss in the period in which the recovery occurs.
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