Page 119 - HKCAAVQ AR 2018-19

Financial Report ৌਕజѓ

Notes to the Financial Statements (continued)
ৌਕజڌڝൗ€ᚃ

For the year ended 31 March 2019 ࿚Їɚཧɓɘϋɧ˜ɧɤɓ˚˟ϋܓ

3. Significant Accounting Policies 3. ˴ࠅึࠇ݁ഄ€ᚃ
(continued)

Leasing ॡ༣

Leases are classified as finance leases whenever the terms ν؈ॡ༣ԴהϞᛆٙഒɽ௅ʱࠬ
of the lease transfer substantially all the risks and rewards ᎈձΫజᔷ୅Ї͉҅dϞᗫٙ༟ପ
of ownership to the lessee. All other leases are classified as کึྌᓥމ˸ፄ༟ॡ༣ܵϞfהϞ
operating leases. Չ˼ॡ༣ѩʱᗳމ຾ᐄॡ༣f

The Council as lessee ͉҅Ъމוॡɛ

Operating lease payments are recognised as an expense on a ຾ᐄॡ༣ಛධ˸ٜᇞجܲϞᗫॡ
straight-line basis over the lease term. ༣ϋಂᆽႩމක˕f

Cash and cash equivalents ତږʿତږഃᄆي

Cash and cash equivalents comprise cash at bank and in hand, ତږʿତږഃᄆيܼ̍ვБπಛ
demand deposits with banks and other financial institutions, ʿତږeπ׳׵ვБձՉ˼ৌਕዚ
and short-term, highly liquid investments that are readily ࿴ٙݺಂπಛd˸ʿ೵ಂձ৷ݴਗ
convertible into known amounts of cash and which are subject ׌ٙҳ༟fவԬҳ༟̙˸ᎇࣛ౬ၑ
to an insignificant risk of changes in value, having been within މʊٝٙତږᕘeᄆ࠽ᜊਗ˙ࠦٙ
three months of maturity at acquisition. ࠬᎈʔɽdԨίᒅɝܝɧࡈ˜ʫՑ
ಂf

Retirement benefit costs ৗ;၅лϓ͉

Payments to defined contribution retirement benefit plans are Σ֛ᕘৗ;၅лࠇྌ׵྇ࡰ౤Զ
recognised as an expense when employees have rendered ؂ਕϾԴՉԮϞԶಛࣛЪމක˕
services entitling them to the contributions. ᆽႩf

Taxation ೼ධ

The Council is exempted from Hong Kong Profits Tax by virtue ܲ๫೼ਕૢԷ‘ୋ87ૢd͉҅ᐏ
of section 87 of the Inland Revenue Ordinance. ᒀеᖮʹ࠰ಥл੻೼f

Provisions ᅡ௪

Provisions are recognised when the Council has a present ࡊ͉҅Ϊཀֻԫ΁ϾוዄତϞப
obligation (legal or constructive) as a result of a past event, ΂€ج֛אપ֛dϾ͉̙҅ঐ඲
it is probable that the Council will be required to settle the ᄵБ༈ධப΂d˲Ϟᗫப΂ऒʿ
obligation, and a reliable estimate can be made of the amount ٙږᕘঐ̙ቦПࠇࣛۆึᆽႩᅡ
of the obligation. ௪f

Hong Kong Council for Accreditation of Academic and Vocational Qualifications 119
࠰ಥኪஔʿᔖุ༟ዝ൙ᄲ҅