Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HKAS 16.74(c),
HKAS 38.122(e),
HKAS 40.75(h)
34
COMMITMENTS 286
HK Listco Ltd
Financial statements for the year ended 31 December 2023
Commitments outstanding at 31 December 2023 not provided for in the financial statements were
as follows:
2023
2022
$'000
$'000
HKAS 16.74(c)
Contracted for acquisition of property, machinery and equipment
1,539
6,376
CP
Authorised but not contracted for:
acquisition of investment property
-
acquisition of property, machinery and equipment
23,000
24,539
-
660
7,036
HKFRS 16.59(b)(iv)
HKAS 37.89
HKAS 37.86
35
(a)
(b)
years
In addition, the group was committed at 31 December 2023 to enter into a new lease287 of [
that is not yet commenced, the lease payments under which amounted to $[●] per annum (2022: a
lease of O] years with lease payments amounted to $[●] per annum).
CONTINGENT ASSETS AND LIABILITIES
Contingent compensation receivable
In September 2023, the company commenced litigation against a supplier for non-performance of a
contract. According to legal advice it is probable that the company will win the case, in which case, the
monetary compensation is expected to amount to approximately $3 million 79. No asset is recognised in
respect of this claim.
Contingent liability in respect of legal claim
In June 2023, a subsidiary of the group received notice that it is being sued by a former employee in
respect of a personal injury purported to have been suffered during his employment with that company.
If the company is found to be liable, the total expected monetary compensation may amount to
approximately $10 million 79. Under the subsidiary's employer's liability insurance policy, it is probable that
in such circumstances the subsidiary could recover approximately $2 million from the insurer. The
subsidiary continues to deny any liability in respect of the injury and, based on legal advice, the directors
do not believe it probable that the court will find against them. No provision has therefore been made in
respect of this claim.
HKFRS 16.55
286
287
Generally, a lessee is no longer required to disclose its lease commitments at the reporting date because the amounts are now
recognised as lease liabilities in the statement of financial position and further details are disclosed in the note to the financial
statements. However, if the portfolio of short-term leases to which the lessee is committed at the end of the reporting period is
dissimilar to the portfolio of short-term leases to which the short-term lease expense disclosed relates, a lessee is required to disclose
the amount of its lease commitments for short-term leases that are accounted for applying the recognition exemptions in paragraph 6
of HKFRS 16.
In accordance with paragraphs 44 to 45 of HKFRS 16, if a lessee signs a new agreement to extend an original lease for the same
underlying asset, it should be accounted for as a lease modification at the effective date of the modification (i.e. at the date when the
new agreement is signed) and therefore the future payments under that new lease should be included in the revised estimate of the
lease liability included in the statement of financial position as at the reporting date. Consequently, such amounts should not be
included in the amounts disclosed as commitments.
189
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