Hong Kong Listed Limited - EY

1 hong kong Listed LimitedIllustrative Report of the Directors and Financial Statements for the year ended 31 December 2015 This set of illustrative financial statements is for a fictitious company Listed on the Main Board ( MB ) of The Stock Exchange of hong kong Limited (the Stock Exchange ). For a company Listed on the Growth Enterprise Market ( GEM ) of the Stock Exchange, equivalent disclosure requirements are also included on t he left-hand side of pages 1 to 159 for reference. The applicable disclosure requirements under the hong kong Companies Ordinance are also included on the left-hand side pages. Certain disclosure exemptions (not highlighted in these financial statements) are available under the hong kong Companies Ordinance for a private company.

2 As hong kong Listed Limited has a 31 December year end, these financial statements disclose the effects of changes in accounting policies as a result of the revised hong kong Financial Reporting Standards ( HKFRSs ) which are first effective for financial years beginning on or after 1 January 201 5. These illustrative financial statements are general purpose financial statements and do not attempt to show all possible accounting and disclosure requirements, nor do they include particular disclosures required by the Stock Exchange or other regulatory bodies for specialist industries, such as banks (see Appendix 15 of the Listing Rules and the Guideline on the Application of the Banking (Disclosure) Rules issued by the hong kong Monetary Authority), financial conglomerates and insurance companies.

3 This set of financial statements also takes up the changes introduced by the hong kong Companies Ordinance (Cap. 622) which came into effect on 3 March 2014. Furthermore, in February 2015, the Stock Exchange announced amendments to the Listing Rules relating to the disclosure of financial information with reference to the new Companies Ordinance and hong kong Financial Reporting Standards, and other minor rule amendments. The amendments relating to the disclosure of financial information are applied to accounting periods ending on or after 31 December 2015. This set of financial statements has taken up these amendments to the Listing Rules.

4 The Stock Exchange has also issued Frequently Asked Questions related to these rule amendments, which can be obtained from the hong kong Stock Exchange s website. HKFRSs as at 30 September 2015 The hong kong Institute of Certified Public Accountants (the HKICPA ) has issued the following new and revised HKFRSs, which are effective for the financial year ended 31 December 2015: Amendments to HKAS 19 Defined Benefit Plans: Employee Contributions Annual Improvements to HKFRSs 2010-2012 Cycle Annual I mprovements to HKFRSs 2011-2013 Cycle hong kong Listed Limited is an existing preparer of financial statements in accordance with HKFRSs and it is a corporate company which is not an investment entity as defined in HKFRS , so these financial statements do not reflect any additional requirements for first-time adopters under HKFRS 1 First-time Adoption of hong kong Financial Reporting Standards and for investment entities under HKFRS 10 and HKFRS 12.

5 (i) hong kong Listed Limited does not early adopt the following HKFRSs which were in issue as at 30 September 2015 but are not yet effective for the financial year ended 31 December 2015: HKFRS 9 Financial Instruments (apb 1 January 2018) Amendments to HKFRS 10, Investment Entities: Applying the Consolidation Exception (apb 1 January 2016) HKFRS 12 and HKAS 28 (2011) Amendments to HKFRS 10 Sale or Contribution of Assets between an Investor and its Associate or and HKAS 28 (2011) Joint Venture (apb 1 January 2016) Amendments to HKFRS 11 Accounting for Acquisitions of Interests in Joint Operations (apb 1 January 2016) HKFRS 14 Regulatory Deferral Accounts (apb 1 January 2016) HKFRS 15 Revenue from Contracts with Customers (apb 1 January 2018) Amendments to HKAS 1 Disclosure Initiative (apb 1 January 2016)

6 Amendments to HKAS 16 Clarification of Acceptable Methods of Depreciation and Amortisation and HKAS 38 (apb 1 January 2016) Amendments to HKAS 16 Agriculture: Bearer Plants (apb 1 January 2016) and HKAS 41 Amendments to HKAS 27 (2011) Equity Method in Separate Financial Statements (apb 1 January 2016) Annual Improvements Amendments to a number of HKFRSs (apb 1 January 2016) 2012-2014 Cycle apb means effective for annual periods beginning on or after (ii) The following HKFRSs have not been dealt with in these illustrative financial statements: HKAS 26 Accounting and Reporting by Retirement Benefit Plans HKAS 27 (2011) Separate Financial Statements HKAS 29 Financial Reporting in Hyperinflationary Economies HKAS 34 Interim Financial Reporting HKAS 41 Agriculture HKFRS 1 First-time Adoption of hong kong Financial Reporting Standards HKFRS 4 Insurance Contracts HKFRS 6 Exploration for and Evaluation of Mineral Resources HKFRS 9 Financial Instruments HKFRS 14 Regulatory Deferral Accounts HKFRS 15 Revenue from Contracts with Customers HK(IFRIC)-Int 2 Members Shares in Co-operative Entities and Similar Instruments HK(IFRIC)

7 -Int 5 Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds HK(IFRIC)-Int 6 Liabilities arising from Participating in a Specific Market Waste Electrical and Electronic Equipment HK(IFRIC)-Int 7 Applying the Restatement Approach under HKAS 29 Financial Reporting in Hyperinflationary Economies HK(IFRIC)-Int 12 Service Concession Arrangements HK(IFRIC)-Int 13 Customer Loyalty Programmes HK(IFRIC)-Int 14 HKAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction HK(IFRIC)-Int 15 Agreements for the Construction of Real Estate HK(IFRIC)-Int 16 Hedges of a Net Investment in a Foreign Operation HK(IFRIC)-Int 17 Distributions of Non-cash Assets to Owners HK(IFRIC)-Int 18 Transfers of Assets from Customers HK(IFRIC)-Int 19 Extinguishing Financial Liabilities with Equity Instruments HK(IFRIC)-Int 20 Stripping Costs in the Production Phase of a Surface Mine Annual Improvements 2012-2014 Cycle (issued in October 2014) HK(SIC)-Int 10 Government Assistance No Specific Relation to Operating Activities HK(SIC)-Int 25 Income Taxes Changes in the Tax Status of an Entity or its Shareholders HK(SIC)

8 -Int 29 Service Concession Arrangements: Disclosures HK(SIC)-Int 31 Revenue Barter Transactions Involving Advertising Services HK(SIC)-Int 32 Intangible Assets Web Site Costs Narrative shown on the left-hand side of each page indicates the applicable HKFRS paragraphs, the hong kong Companies Ordinance and rules of the Stock Exchange or other regulatory bodies that describe the specific disclosure requirements. In certain cases, for the purpose of this document, the requirements have been paraphrased. Reference should be made to the source for the complete text. The information shown may not present every applicable disclosure requirement.

9 Additional illustrative disclosures which are not applicable to hong kong Listed Limited are highlighted in grey on the right-hand pages for reference. A Listed company needs to comply with the minimum disclosure requirements as specified in Appendix 16 of the Listing Rules (GEM Rules Chapter 18). A Listed company which is not incorporated in hong kong is also required to comply with the disclosure requirements of the hong kong Companies Ordinance and subsidiary legislation (A16(28)) (GEM Rules and ). This publication does not include all the disclosures required by the Listing Rules and the hong kong Companies Ordinance. The disclosures presented in these illustrative financial statements are examples only.

10 Actual disclosures should reflect the particular circumstances of the entity concerned. In addition, there may be more than one way in which disclosures can be made whilst still complying with HKFRSs or other requirements. In case of doubt as to the disclosure requirements, reference should be made to the relevant source. (iii) HKAS 1 refers to a statement of financial position , and a statement of profit or loss and other comprehensive income or a statement of profit or loss . HKAS 1 allows an entity to use titles for the statements other than those used in HKAS 1. For example, an entity may use the title statement of comprehensive income instead of statement of profit or loss and other comprehensive income (HKAS ).