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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