DOCSLIB.ORG

Applying IFRS a Closer Look at IFRS 16 Leases

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Applying IFRS a Closer Look at IFRS 16 Leases Applying IFRS A closer look at IFRS 16 Leases Updated December 2020 Contents Overview 4 1. Objective and scope of IFRS 16 5 1.1 Objective of IFRS 16 5 1.2 Scope of IFRS 16 5 1.3 Recognition exemptions 6 2. What is a lease? 7 2.1 Determining whether an arrangement contains a lease 7 2.2 Identifying and separating lease and non-lease components of a contract and allocating contract consideration 27 2.3 Contract combinations 36 3. Key concepts 37 3.1 Inception of a contract 37 3.2 Commencement date of the lease 37 3.3 Lessee involvement with the underlying asset before the commencement date 38 3.4 Lease term and purchase options 39 3.5 Lease payments 47 3.6 Discount rates 55 3.7 Initial direct costs 58 3.8 Economic life 60 3.9 Fair value 60 4. Lessee accounting 61 4.1 Initial recognition 61 4.2 Initial measurement 64 4.3 Subsequent measurement 66 4.4 Remeasurement of lease liabilities 71 4.5 Lease modifications 73 4.6 Other lessee matters 80 4.7 Presentation 81 4.8 Disclosure 83 5. Lessor accounting 89 5.1 Lease classification 89 5.2 Key concepts applied by lessor 91 5.3 Finance leases 92 5.4 Operating leases 102 5.5 Lease modifications 104 5.6 Other lessor matters 109 5.7 Presentation 109 5.8 Disclosure 110 6. Subleases 112 1 December 2020 Applying IFRS - A closer look at IFRS 16 Leases 6.1 Definition 112 6.2 Intermediate lessor accounting 112 6.3 Sub-lessee accounting 115 6.4 Presentation 115 6.5 Disclosure 115 7. Sale and leaseback transactions 116 7.1 Determining whether the transfer of an asset is a sale 116 7.2 Transactions in which the transfer of an asset is a sale 119 7.3 Transactions in which the transfer of an asset is not a sale 126 7.4 Disclosure 127 8. Business combinations 128 8.1 Acquiree in a business combination is a lessee 128 8.2 Acquiree in a business combination is a lessor 129 9. Effective date and transition 130 9.1 Effective date 130 9.2 Transition 130 9.3 Lessee transition 131 9.4 Lessors 141 9.5 Other considerations 142 9.6 Disclosure 143 Appendix A: IFRS 16 Defined terms 145 Appendix B: Key differences between IFRS 16 and IAS 17 148 Appendix C: Key differences between IFRS 16 and ASC 842 155 Appendix D: Summary of lease reassessment and remeasurement requirements 162 2 December 2020 Applying IFRS - A closer look at IFRS 16 Leases What you need to know • IFRS 16 Leases requires lessees to put most leases on their balance sheets. • Lessees apply a single accounting model for all leases, with certain exemptions. • For lessors, the accounting is substantially unchanged from the accounting under IAS 17 Leases. • IFRS 16 is effective for annual periods beginning on or after 1 January 2019, with limited early application permitted. 3 December 2020 Applying IFRS - A closer look at IFRS 16 Leases Overview IFRS 16 Leases requires lessees to recognise assets and liabilities for most IFRS 16 requires lessees leases. The International Accounting Standards Board (IASB or the Board) to recognise most issued the standard after joint deliberations with the Financial Accounting leases on their balance Standards Board (FASB), which issued a similar standard (ASC 842 Leases). sheets. However, there are significant differences between the IASB and FASB standards (e.g., lessees classify leases as finance or operating leases under the FASB standard). These differences will result in certain transactions being accounted for differently under IFRS and US GAAP. Appendix C of this publication summarises the key differences between IFRS 16 and ASC 842. IFRS 16 replaces IAS 17 Leases. It requires lessees to recognise most leases on their balance sheets and provides enhanced disclosure requirements. The IASB believes this will result in a more faithful representation of lessees’ assets and liabilities and greater transparency of lessees’ financial obligations and leasing activities. Under IFRS 16, leases are accounted for based on a ‘right-of-use model’. The model reflects that, at the commencement date, a lessee has a financial obligation to make lease payments to the lessor for its right to use the underlying asset during the lease term. The lessor conveys that right to use the underlying asset at lease commencement, which is the time when it makes the underlying asset available for use by the lessee. Entities will need to focus on whether an arrangement contains a lease or a service agreement because there are significant differences in the accounting. Although IFRS 16 changes how the definition of a lease is applied, we believe that the assessment of whether a contract contains a lease will be straightforward in most arrangements. However, judgement may be required in applying the definition of a lease to certain arrangements, particularly those that include significant services. Lessor accounting under IFRS 16 is substantially unchanged from the accounting under IAS 17. Lessors continue to classify all leases as operating or finance leases. IFRS 16 is effective for annual periods beginning on or after 1 January 2019. Early application is permitted, provided the new revenue standard, IFRS 15 Revenue from Contracts with Customers, has been applied, or is applied at the same date as IFRS 16. This publication discusses how IFRS 16 is applied and is intended to help companies consider the effects of adopting and applying it. We encourage preparers and users of financial statements to read this publication carefully and consider the potential effects of the new standard. The views we express in this publication represent our perspectives as of December 2019. We may identify additional issues as we continue to analyse the standard and entities interpret it, and our views may evolve during that process. 4 December 2020 Applying IFRS - A closer look at IFRS 16 Leases 1. Objective and scope of IFRS 16 1.1 Objective of IFRS 16 IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity. IFRS 16 requires an entity to consider the terms and conditions of contracts and all relevant facts and circumstances, and to apply the standard consistently to contracts with similar characteristics and in similar circumstances. 1.2 Scope of IFRS 16 Extract from IFRS 16 3 An entity shall apply this Standard to all leases, including leases of right-of- use assets in a sublease, except for: (a) leases to explore for or use minerals, oil, natural gas and similar non- regenerative resources; (b) leases of biological assets within the scope of IAS 41 Agriculture held by a lessee; (c) service concession arrangements within the scope of IFRIC 12 Service Concession Arrangements (d) licences of intellectual property granted by a lessor within the scope of IFRS 15 Revenue from Contracts with Customers; and (e) rights held by a lessee under licensing agreements within the scope of IAS 38 Intangible Assets for such items as motion picture films, video recordings, plays, manuscripts, patents and copyrights. 4 A lessee may, but is not required to, apply this Standard to leases of intangible assets other than those described in paragraph 3(e). IFRS 16 applies to all leases, including leases of right-of-use assets in a sublease, except for the following: • Leases to explore for, or use, minerals, oil, natural gas and similar non- regenerative resources • Leases of biological assets within the scope of IAS 41 Agriculture held by a lessee • Service concession arrangements within the scope of IFRIC 12 Service Concession Arrangements. Entities should evaluate the applicability of IFRIC 12 before evaluating whether an arrangement contains a lease. • Licences of intellectual property granted by a lessor within the scope of IFRS 15 • Rights held by a lessee under licensing agreements within the scope of IAS 38 Intangible Assets for such items as motion picture films, video recordings, plays, manuscripts, patents and copyrights 5 December 2020 Applying IFRS - A closer look at IFRS 16 Leases A lessee is not required to apply IFRS 16 to leases of intangible assets not covered by the exceptions above. However, a lessee could choose to account for leases of such intangible assets under IFRS 16. There are differing views about whether a licence of software is excluded from the scope of IFRS 16 based on interpretations of paragraph 3(e) of IFRS 16. If an entity determines that a licence of software is not excluded from the scope of IFRS 16, paragraph 4 of IFRS 16 permits, but does not require, an entity to account for the licence of software as a lease. If a cloud computing arrangement contains a lease of an asset other than a licence of software (or the entity has determined that a licence of software is not excluded from the scope of IFRS 16 and has elected to account for leases of intangible assets under IFRS 16), an entity should apply the provisions of IFRS 16 to the cloud computing arrangement. This includes identifying and separating lease and non-lease components and allocating contract consideration, which is discussed at 3.2 below. 1.3 Recognition exemptions IFRS 16 allows a lessee to elect not to apply the recognition requirements to: a) Short-term leases; and b) Leases for which the underlying asset is of low value.
Load more

Recommended publications
  • Sale-Leasebacks: an Innovative Tool to Convert Corporate Real Estate
    About W. P. Carey W. P. Carey Inc. (NYSE: WPC), one of today’s largest diversified net lease REITs, provides long-term sale- Sale-Leasebacks: An Innovative leaseback and build-to-suit capital solutions primarily for companies in Tool to Convert Corporate the U.S. and Northern and Western Europe. We are well positioned with the capital and experience needed to Real Estate into Working Capital maximize efficiency and ensure certainty of close on complex, single Many companies have a large part of their equity and multi-country deals that meet our investment criteria. tied up in their real estate assets, despite not being Years of Tenant in the business of real estate. In a sale-leaseback, Experience Industries a company sells its real estate to an investor like + + W. P. Carey for cash and simultaneously enters into 45 30 a long-term lease. In doing so, the company extracts Number of Net Lease Countries Properties 100% of the property’s value and converts an otherwise illiquid asset into working capital to grow 25 1,266 its business, while maintaining full operational control. Our Investment Criteria • Occupancy • Purchase Price Single-tenant $5M to $500M Sells Property • Property Types • Geographies Industrial, U.S. and Europe warehouse, office, select retail, other Prospective Pays Rent specialized assets Tenant “The Seller” Pays Market Value “The Buyer” Who We Work With • Brokers • Developers Leases Back Property • Publicly traded and • Private equity privately-held firms and their companies portfolio companies Sale-Leaseback Benefits
    [Show full text]
  • Changes in Accounting Estimates—Disclosures
    Agenda ref 25B April 2016 STAFF PAPER REG IASB Meeting Review of IAS 8 Accounting Policies, Changes in Project Accounting Estimates and Errors Paper topic Changes in accounting estimates: disclosure CONTACT(S) Nadia Chebotareva [email protected] +44 (0) 20 7246 6457 Leonardo Piombino [email protected] +39 06 6976 6834 This paper has been prepared for discussion at a public meeting by the staff of the International Accounting Standards Board® (‘the Board’) and the OIC staff. It does not represent the views of the Board or the OIC or any individual member of the Board or the OIC. Comments on the application of IFRS® Standards do not purport to set out acceptable or unacceptable application of IFRS Standards. Technical decisions are made in public and reported in IASB Update. Background and purpose of the paper 1. As described in Agenda Paper 25A, in September 2014 the Board tentatively decided that the issue of distinguishing between a change in an accounting policy and a change in an accounting estimate, and any applicable thresholds for making changes and disclosures, should be considered as part of the Disclosure Initiative.1 The Board started its discussion of whether to add to IAS 8 any disclosure requirements for changes in accounting estimates in May 2015. 2. The purpose of this paper is to: (a) recommend not adding any new disclosure requirements to IAS 8 for changes in accounting estimates; and (b) recommend not doing any further work on the disclosure requirements for changes in accounting estimates in IFRS Standards. 3. The rest of this paper discusses: (a) Existing disclosure requirements for changes in accounting policies and accounting estimates—paragraphs 5-8 (b) Recommendation in May 2015—paragraphs 9-13 (c) Current recommendation—paragraphs 14-17 (d) Review of disclosure requirements in IFRS Standards—paragraphs 18-22.
    [Show full text]
  • Need to Know IASB Issues IFRS 16 – Leases
    GAAP clear vision Need to know IASB issues IFRS 16 – Leases In a nutshell and liabilities recognised in respect Observation of all leases (subject to limited • The new Standard provides exceptions for short‑term leases and The project’s original aim was the a comprehensive model for the leases of low value assets). production of a converged IFRS and identification of lease arrangements U.S. GAAP standard. However, the and their treatment in the financial • In contrast, the Standard does not IASB and FASB reached different statements of both lessees and include significant changes to the conclusions on a number of lessors. It supersedes IAS 17 Leases requirements for accounting by issues including the recognition and its associated interpretative lessors. and presentation of expenses by guidance. • Entities will need to consider the lessees. As a result, the FASB’s • IFRS 16 applies a control model to the impact of the changes introduced leasing standard (issued in February identification of leases, distinguishing by the Standard on, for example, IT 2016) differs from IFRS 16 in several between leases and service contracts systems and internal controls. respects. on the basis of whether there is an • Subject to EU endorsement, the identified asset controlled by the Standard is effective for annual customer. periods beginning on or after 1 • Significant changes to lessee January 2019 with earlier application For more information please see accounting are introduced, with the permitted for entities that have the following websites: distinction between operating and also adopted IFRS 15 Revenue from www.iasplus.com finance leases removed and assets Contracts with Customers.
    [Show full text]
  • Sale and Leaseback of British Films
    Sale and Leaseback of British Films The Materials These materials specifically cover the following areas: These materials have been provided by the • Qualification Checklist Media and Creative Industries Group of • Brief History of Sale and Leaseback Transactions Dorsey & Whitney and are intended for use • The Parties as general reference material on the topic of • The Basic Transaction British film sale and leaseback transactions. • The Documentation • The Purchase Price Dorsey & Whitney is an international law • Benefits firm with 21 offices across the United States, • End of the Lease Term Europe and Asia. As a team of seasoned • Definition of a “British Film” lawyers who are intimately familiar with the • Co-Production dynamics of the creative industries, Dorsey & • Recent Developments Whitney’s Media and Creative Industries Qualification Checklist Group provides tailor-made solutions The following is a qualification checklist, which designed to meet the needs of media and producers should consult when considering whether a entertainment clients operating at national particular film will qualify for a sale and leaseback and international levels. transaction. 1.1 Is the production company registered and The Group regularly calls upon the expertise centrally managed/controlled in the UK, or in of colleagues across many time zones, a state that is a member of the EEA1 or is a specialising in areas as diverse as intellectual signatory of the EC Association Agreement2 property, acquisitions and sales, licensing, (“Eligible State”)? financing and tax planning. This depth of 1.2 Is 70% of the production cost of the film being capability enables the Group to provide a spent on filmmaking activity in the UK? (If the seamless service to clients involved in the costs of one or two people are deducted from film, TV, video, DVD, music, fashion, the total labour costs - as detailed in 1.3 and 1.4 below - then the same costs must be deducted advertising, publishing, sport and leisure, from the total production cost before the 70% computer games and technology sectors.
    [Show full text]
  • Risk & Reward in Aircraft Backed Finance
    Modeling Aircraft Loan & Lease Portfolios 3rd revision Discussion Notes October 2017 Modeling Aircraft Loans & Leases Discussion notes December 2013 2 PK AirFinance is a sub-business of GE Capital Aviation Services (GECAS). The company provides and arranges debt to airlines and investors secured by commercial aircraft. Cover picture by Serge Michels, Luxembourg. 3 Preface These discussion notes are a further update to notes that I prepared in 2010 and revised in 2013. The issues discussed here are ones that we have pondered over the last 25 years, trying to model aircraft loans and leases quantitatively. In 1993, Jan Melgaard (then at PK) and I worked with Bo Persson in Sweden to develop an analytic model of aircraft loans that we called SAFE. This model evolved into a Monte Carlo simulation tool, Lending EDGE, that was taken into operation at PK in 2012 and validated under ISRS 4400 by Deloitte in 2013. I have now made some corrections and amendments to the previous version, based on helpful feed-back from industry practitioners and academics. I have added a section on Prepayment Risk in loans and expanded on Jurisdiction Risk. My work at PK AirFinance has taught me a lot about risks and rewards in aircraft finance, not least from the deep experience and insight of many valued customers and my co-workers here at PK and at GECAS, our parent company, but the views and opinions expressed herein are my own, and do not necessarily represent those of the General Electric Company or its subsidiaries. In preparing these notes, I have been helped by several people with whom I have had many inspiring discussions.
    [Show full text]
  • Property, Plant and Equipment
    HKAS 16 Revised June 2020August 2020 Hong Kong Accounting Standard 16 Property, Plant and Equipment HKAS 16 (June 2020) COPYRIGHT © Copyright 2020 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial Reporting Standard contains IFRS Foundation copyright material. Reproduction within Hong Kong in unaltered form (retaining this notice) is permitted for personal and non-commercial use subject to the inclusion of an acknowledgment of the source. Requests and inquiries concerning reproduction and rights for commercial purposes within Hong Kong should be addressed to the Director, Finance and Operation, Hong Kong Institute of Certified Public Accountants, 37/F., Wu Chung House, 213 Queen's Road East, Wanchai, Hong Kong. All rights in this material outside of Hong Kong are reserved by IFRS Foundation. Reproduction of Hong Kong Financial Reporting Standards outside of Hong Kong in unaltered form (retaining this notice) is permitted for personal and non-commercial use only. Further information and requests for authorisation to reproduce for commercial purposes outside Hong Kong should be addressed to the IFRS Foundation at www.ifrs.org. Further details of the copyright notice form IFRS foundation is available at http://app1.hkicpa.org.hk/ebook/copyright-notice.pdf © Copyright 2 HKAS 16 (March 2010February 2014) CONTENTS HONG KONG ACCOUNTING STANDARD 16 PROPERTY, PLANT AND EQUIPEMENT from paragraph INTRODUCTION IN1 OBJECTIVE 1 SCOPE 2 DEFINITIONS 6 RECOGNITION 7 Initial costs 11 Subsequent costs 12 MEASUREMENT AT RECOGNITION
    [Show full text]
  • IFRS 16 Impact on Covenants
    w Hogan Lovells High-Yield: IFRS 16 impact on covenants This article provides an analysis of the impact of IFRS 16 on high-yield covenants and an overview of the various approaches adopted by European high-yield issuers in the first quarter of 2019, including on some of the deals our team was involved in (Rexel, Faurecia). The new International Financial Reporting Income Statement Standard 16 Leases (IFRS 16) has taken effect, • increase in EBITDA, as payments under and the companies using IFRS shall adopt operating leases (previously recorded as IFRS 16 for accounting periods beginning on operating lease expenses and reflected in or after 1 January 2019. Under the prior EBITDA) are now reclassified and split IFRS accounting standard for leases (IAS 17), between (i) depreciation charges for lease assets lessees accounted for their lease liabilities either and (ii) interest expenses on lease liabilities as operating leases or finance leases. Operating (both are excluded from EBITDA). While this leases were accounted for as off-balance sheet new split would also increase EBITA, as interest items, while finance leases were reflected on expenses are not included in its calculation, this the balance sheet. A lease would be classified change is expected to be less substantial, as the as a finance lease if it transfers substantially all majority of the typical operating lease expenses the risks and rewards incident to ownership. will be reflected in depreciation; All other leases would be classified as operating Statement of Cash Flows leases, with classification being made at the • no expected change in total cash flow amount, inception of the lease.
    [Show full text]
  • IATA Industry Accounting Working Group Guidance IFRS 15, Revenue from Contracts with Customers
    IATA Industry Accounting Working Group Guidance IFRS 15, Revenue from Contracts with Customers 2nd Edition Issued May 2018 IATA Industry Accounting Working Group Guidance IFRS 15, Revenue from Contracts with Customers NOTICE DISCLAIMER. This document has been compiled by the IATA Industry Accounting Working Group (IAWG), which consists of senior finance representatives from IATA member airlines. This working group’s mandate is to promote consistency in the application of International Financial Reporting Standards (IFRS) and to lobby accounting standard setters to take into consideration the interests of airlines globally. It is distributed with the understanding that IATA, the IAWG and its members, observers and advisors are not rendering accounting, legal or other professional services in this publication. If accounting, legal advice or other expert assistance is required, the services of a competent professional should be sought. The paper addresses a specific issue related to the adoption of IFRS 15, Revenue from Contracts with Customers. This paper is not intended to provide accounting advice or a definitive analysis of the underlying issue as fact patterns, regulatory environment, practices and interpretations may vary. The views taken should not be used as a substitute for referring to the standards and interpretations of IFRS or professional advice from your auditor or other professional accounting advisor. The information contained in this publication is subject to constant review in the light of changing government requirements and regulations. No subscriber or other reader should act on the basis of any such information without referring to applicable laws and regulations and/or without taking appropriate professional advice. Although every effort has been made to ensure accuracy, the International Air Transport Association shall not be held responsible for any loss or damage caused by errors, omissions, misprints or misinterpretation of the contents hereof.
    [Show full text]
  • IFRS 15 IFRS 15 Revenue from Contracts with Customers Is Issued
    IFRS 15 IFRS 15 Revenue from Contracts with Customers is issued by the International Accounting Standards Board (the Board). IFRS Standards together with their accompanying documents are issued by the International Accounting Standards Board (the “Board”). Disclaimer: To the extent permitted by applicable law, the Board and the IFRS Foundation (Foundation) expressly disclaim all liability howsoever arising from this publication or any translation thereof whether in contract, tort or otherwise (including, but not limited to, liability for any negligent act or omission) to any person in respect of any claims or losses of any nature including direct, indirect, incidental or consequential loss, punitive damages, penalties or costs. Information contained in this publication does not constitute advice and should not be substituted for the services of an appropriately qualified professional. Copyright © IFRS Foundation All rights reserved. Reproduction and use rights are strictly limited. Contact the Foundation for further details at [email protected]. Copies of IASB publications may be obtained from the Foundation’s Publications Department. Please address publication and copyright matters to: IFRS Foundation Publications Department 30 Cannon Street, London, EC4M 6XH, United Kingdom. Tel: +44 (0)20 7332 2730 Fax: +44 (0)20 7332 2749 Email: [email protected] Web: www.ifrs.org The IFRS Foundation logo, the IASB logo, the IFRS for SMEs logo, the “Hexagon Device”, “IFRS Foundation”, “eIFRS”, “IAS”, “IASB”, “IFRS for SMEs”, “IASs”, “IFRS”, “IFRSs”,
    [Show full text]
  • IFRS 9, Financial Instruments Understanding the Basics Introduction
    www.pwc.com/ifrs9 IFRS 9, Financial Instruments Understanding the basics Introduction Revenue isn’t the only new IFRS to worry about for 2018—there is IFRS 9, Financial Instruments, to consider as well. Contrary to widespread belief, IFRS 9 affects more than just financial institutions. Any entity could have significant changes to its financial reporting as the result of this standard. That is certain to be the case for those with long-term loans, equity investments, or any non- vanilla financial assets. It might even be the case for those only holding short- term receivables. It all depends. Possible consequences of IFRS 9 include: • More income statement volatility. IFRS 9 raises the risk that more assets will have to be measured at fair value with changes in fair value recognized in profit and loss as they arise. • Earlier recognition of impairment losses on receivables and loans, including trade receivables. Entities will have to start providing for possible future credit losses in the very first reporting period a loan goes on the books – even if it is highly likely that the asset will be fully collectible. • Significant new disclosure requirements—the more significantly impacted may need new systems and processes to collect the necessary data. IFRS 9 also includes significant new hedging requirements, which we address in a separate publication – Practical guide – General hedge accounting. With careful planning, the changes that IFRS 9 introduces might provide a great opportunity for balance sheet optimization, or enhanced efficiency of the reporting process and cost savings. Left too long, they could lead to some nasty surprises.
    [Show full text]
  • IFRS 16 Workshop Deck
    Alumni Seminar - Capital Market Updates and Preparing for HKFRS 16 23 November 2018 Disclaimer This presentation contains general information only and Deloitte Touche Tohmatsu is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte Touche Tohmatsu, its affiliates and related entities shall not be responsible for any loss sustained by any person who relies on this presentation. © 2018©. F2018or info.r mFoarti oinfn, ocromntactti oDne,lo cittoent Cachinta. Deloitte China. 2 Speakers Edward Au Kenneth Chan Co-Leader Partner National Public Offering Group Audit & Assurance Deloitte China Partner Audit & Assurance [email protected] Deloitte China +852 2852 5622 [email protected] +852 2852 1266 © 2018. For information, contact Deloitte China. 3 IPO Market Update © 2018. For information, contact Deloitte China. 4 The Rules Changes © 2018. For information, contact Deloitte China. 5 Updated listing requirements for MB and GEM Effective 15 February 2018 1.Profit Test § Profits in the last 3 financial years > HK$50 million § Preceding 2 years' aggregate profits > HK$30 million § Most recent year's net profit > HK$20 million § Market capitalization at the time of listing > HK$500million 2. Market Capitalization/ Revenue/ Cash Flow Test § Market capitalization at the time of listing > HK$2 billion § Most recent audited financial year's revenue > HK$500 million § Preceding 3 financial years’ aggregated positive cash flow from operating activities > Main Board HK$100 million 3.
    [Show full text]
  • Southwest Airlines Co
    Southwest Airlines Co. May 2020 – Investor Booklet Cautionary Statement Regarding Forward-Looking Statements This booklet contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include, without limitation, statements related to (i) the Company’s Vision; (ii) the Company’s financial position, outlook, expectations, strategies, and projected results of operations, including factors and assumptions underlying the Company’s projections, in particular the impacts of the COVID-19 pandemic; (iii) the Company’s network and capacity plans, expectations, and opportunities, including factors and assumptions underlying the Company's plans and expectations, in particular the impacts of the COVID-19 pandemic; (iv) the Company’s expectations with respect to liquidity (including its plans for the repayment of debt and finance lease obligations) and anticipated capital expenditures; (v) the Company's plans and expectations regarding its fleet, its fleet order book, and its fleet delivery schedule, including factors and assumptions underlying the Company's plans and expectations; (vi) the Company’s expectations about future disbursements pursuant to the Payroll Support Program under the CARES Act; (vii) the Company's expectations with respect to the secured loan program under the CARES Act; and (viii) the Company’s initiatives and related plans and expectations, and related operational and financial expectations, including with respect to its reservation system, Southwest Business, global distribution systems, and related alliances and capabilities. These forward- looking statements are based on the Company’s current intent, expectations, and projections and are not guarantees of future performance.
    [Show full text]