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

The reconciliation between the operating lease commitments as disclosed by
applying HKAS 17 as at 31 March 2019 and the lease liabilities recognised in the
interim condensed consolidated balance sheet as at 1 April 2019 (date of initial
application of HKFRS 16) is as follows:

Unaudited
HK$’000

Operating lease commitments disclosed as at 31 March 2019 378,842

Discounted using the lessee’s incremental borrowing rate
at the date of initial application 305,553
Less: short-term leases recognised on a straight-line basis
as expense (2,131)
Less: low-value leases recognised on a straight-line basis
as expense (504)

Lease liabilities recognised as at 1 April 2019 302,918

Of which are:
Current lease liabilities 27,076
Non-current lease liabilities 275,842

302,918

10 ALCO HOLDINGS LIMITED Interim Report 2019