Investor Presentaiton
HKAS 1.51(a)
HKAS 1.49
HKFRS 13.91-92
(f) Fair value measurement 265
HKFRS 13.93
(i)
HKFRS 13.93(b)
Financial assets and liabilities measured at fair value283
Fair value hierarchy164
HKFRS 13.93(g)
HK Listco Ltd
Financial statements for the year ended 31 December 2023
The following table presents the fair value of the group's financial instruments measured at the end of the
reporting period on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS
13, Fair value measurement. The level into which a fair value measurement is classified is determined with
reference to the observability and significance of the inputs used in the valuation technique as follows:
Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in
active markets for identical assets or liabilities at the measurement date
Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet
Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which
market data are not available.
Level 3 valuations: Fair value measured using significant unobservable inputs
The group has a team headed by the finance manager performing valuations for the financial instruments,
including unlisted equity securities and conversion option embedded in convertible notes which are
categorised into Level 3 of the fair value hierarchy. The team reports directly to the chief financial officer and
the audit committee. A valuation report with analysis of changes in fair value measurement is prepared by
the team at each interim and annual reporting date, and is reviewed and approved by the chief financial
officer. Discussion of the valuation process and results with the chief financial officer and the audit
committee is held twice a year, to coincide with the reporting dates. 169
283 As mentioned in footnote 165, for recurring and non-recurring fair value measurements, entities are required to disclose, for each
class of assets and liabilities, the fair value measurement at the end of the reporting period, and for non-recurring fair value
measurements, the reasons for the measurement. Class is determined based on the nature, characteristics and risks of the asset
or liability, and the level of the fair value hierarchy within which the fair value measurement is categorised. As far as financial
instruments are concerned, "classes" would be determined at a lower level than the measurement categories (i.e. amortised cost,
FVPL and FVOCI-recycling and non-recycling) in HKFRS 9 when the financial instruments within the same category have
significantly different nature, characteristics or risks. For example, in this illustration, the category "measured at fair value through
profit or loss" is subdivided into trading and non-trading securities.
185
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