86
Financial Report
財務報告
86
Notes to the Financial Statements (continued)
財務報表附註（續）
For the year ended 31 March 2016
截至二零一六年三月三十一日止年度
3. SIGNIFICANT ACCOUNTING
POLICIES (continued)
Leasing
Leases are classified as finance leases whenever the terms
of the lease transfer substantially all the risks and rewards
of ownership to the lessee. All other leases are classified as
operating leases.
The Council as lessee
Operating lease payments are recognised as an expense on a
straight-line basis over the lease term.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand,
demand deposits with banks and other financial institutions,
and short-term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject
to an insignificant risk of changes in value, having been within
three months of maturity at acquisition.
Retirement benefit costs
Payments to defined contribution retirement benefit plans are
recognised as an expense when employees have rendered
services entitling them to the contributions.
Taxation
The Council is exempted from Hong Kong Profits Tax by virtue
of section 87 of the Inland Revenue Ordinance.
3.
主要會計政策（續）
租賃
如果租賃使所有權的絕大部分風
險和回報轉移至本局，有關的資
產便會劃歸為以融資租賃持有。
所有其他租賃均分類為經營租賃。
本局作為承租人
經營租賃款項以直線法按有關租
賃年期確認為開支。
現金及現金等價物
現金及現金等價物包括銀行存款
及現金、存放於銀行和其他財務
機構的活期存款，以及短期和高
流動性的投資。這些投資可以隨
時換算為已知的現金額、價值變
動方面的風險不大，並在購入後
三個月內到期。
退休福利成本
向定額退休福利計劃於僱員提供
服務而使其享有供款時作為開支
確認。
稅項
按照《稅務條例》第
87
條，本局獲
豁免繳交香港利得稅。