Annual Report 2023

276 2023 Annual Report Transport International Holdings Limited FINANCIAL SUMMARY For the years ended 31 December (Expressed in Hong Kong dollars) Notes: (a) The disposal of RoadShow Holdings Limited in 2017 constituted a discontinued operation. In accordance with HKFRS 5, Non-current assets held for sale and discontinued operations , the Group has re-presented the comparative information in 2016 in this regard. (b) The Group has initially applied HKFRS 9, Financial instruments , at 1 January 2018. Under the transition method chosen, comparative information was not restated. (c) As a result of the adoption of HKFRS 16, Leases , with effect from 1 January 2019, the Group has changed its accounting policies in respect of the lessee accounting model. In accordance with the transitional provisions of the standard, the changes in accounting policies were adopted by way of recognising right-of-use assets and lease liabilities as at 1 January 2019. After initial recognition of these assets and liabilities, the Group as a lessee is required to recognise interest expense accrued on the outstanding balance of the lease liability, and the depreciation of the right-of-use asset, instead of the previous policy of recognising rental expenses incurred under operating leases on a straight-line basis over the lease term. Under the transition method chosen, comparative information was not restated. (d) During the year ended 31 December 2023, the Group has changed its accounting policy with respect to the measurement of investment properties and investment property under development from using the cost model to fair value model. These changes have been applied retrospectively and the relevant comparative amounts in 2022 and 2021 have been restated accordingly. (e) In June 2022, the Hong Kong SAR Government gazetted the Hong Kong Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022. In July 2023, the Hong Kong Institute of Certified Public Accountants (“HKICPA”) published “Accounting implications of the abolition of the MPF-LSP offsetting mechanism in Hong Kong” that provides accounting guidance relating to the offsetting mechanism and the abolition of the mechanism. To better reflect the substance of the abolition of the offsetting mechanism, the Group has changed its accounting policy in connection with its provision for long service payments and has applied the HKICPA guidance retrospectively. The relevant comparative amounts in 2022 have been restated accordingly.