Page 123 - Urban Renewal Authority 2023-24 Annual Report

2. Material accounting policies (Continued)

(c) Possible impact of amendments, new standards and interpretations issued but not yet effective
for the year ended 31 March 2024 (Continued)

Effective for accounting
periods beginning on or after

Amendments to HKAS 7, Statement of cash flows and
HKFRS 7, Financial Instruments: Disclosures: Supplier
finance arrangements 1 January 2024
Amendments to HKAS 21, The effects of changes in
foreign exchange rates: Lack of exchangeability 1 January 2025

The Group is in the process of making an assessment of what the impact of these developments is
expected to be in the period of initial application. So far it has concluded that the adoption of them is
unlikely to have a significant impact on the consolidated financial statements.

(d) Basis of consolidation
The consolidated financial statements include the financial statements of the Authority and all its
subsidiaries made up to 31 March.

Subsidiaries are entities over which the Group has control. The Group controls an entity when the
Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power over the entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They
are de-consolidated from the date that control ceases.

All intercompany transactions, balances and cash flows within the Group are eliminated in full on
consolidation.
In the Authority’s statement of financial position, investments in subsidiaries are stated at cost less
any provision for impairment losses (see Note 2(h)). Any such provisions are recognised as an expense
in profit or loss.

(e) Revenue recognition
Revenue is recognised when control over a product or service is transferred to the customer, or the
lessee has the right to use the asset, at the amount of promised consideration to which the Group is
expected to be entitled, excluding those amounts collected on behalf of third parties.

URA ANNUAL REPORT 2023-24 121