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2.   Changes in accounting policies (continued)
           (i)   Adjustments recognised on adoption of HKFRS 16 (continued)

                As a lessee, the Group’s leases are mainly rentals of offices and land use rights.
                The right-of-use assets for leases were measured on a modified retrospective
                basis as if new rules had always been applied and there were no onerous lease
                contracts that would have required an adjustment to the right-of-use assets at the
                date of initial application. The change in accounting policy affected the following
                items in the unaudited consolidated balance sheet at 1 April 2019:

                                                  31 March
                                                     2019   Adjustments
                                               As originally   on adoption   1 April 2019
                Balance sheet (extracted)        presented  of HKFRS 16  Restated
                                                  HK$’000    HK$’000     HK$’000

                Non-current assets
                 Property, plant and equipment      316,797    (68,070)   248,727
                 Prepayments, deposits and other receivables  11,560  (6,198)  5,362
                 Right-of-use assets                    –      324,934    324,934
                 Deferred income tax assets          8,153      11,548     19,701


                Non-current liabilities
                 Lease liabilities                      –      275,842    275,842

                Current liabilities
                 Trade and other payables           205,340    (16,055)   189,285
                 Lease liabilities                      –       27,076     27,076

                Equity
                 Reserves                         1,257,744    (24,649)  1,233,095






















                                            Interim Report 2019     ALCO HOLDINGS LIMITED  9
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