Page 121 - 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)

Financial instruments (continued) ږፄʈՈ€ᚃ

The effective interest method is a method of calculating the ྼყлଟجމࠇၑϞᗫಂගږፄ
amortised cost of a financial asset or financial liability and ༟ପאږፄࠋවʘᛅቖϓ͉ʿʱ
of allocating interest income and interest expense over the ৣлࢹ൬͜ʘ˙جfྼყлଟɗ׵
relevant period. The effective interest rate is the rate that ڋӉᆽႩࣛܲවਕʈՈʘཫࠇϋ
exactly discounts estimated future cash receipts and payments ಂאቇٙ͜༰೵ಂගd๟ᆽ൨ତП
(including all fees paid or received that form an integral part of ࠇ͊Ըତږϗɝ€ܼ̍הϞ࿴ϓྼ
the effective interest rate, transaction costs and other premiums ყлଟʔ̙אॹ௅΅ʘʊ˹אʊ
or discounts) through the expected life of the financial asset or ϗ൬͜eʹ׸ϓ͉ʿՉ˼๐ᄆאұ
financial liability, or, where appropriate, a shorter period to the ᜫЇሪࠦଋ࠽ʘлଟf
net carrying amount on initial recognition.

Financial assets ږፄ༟ପ

Classification and subsequent measurement of financial assets ږፄ༟ପٙʱᗳձܝᚃࠇඎ€࣬ኽ
(upon application of HKFRS 9 in accordance with transitions in ڝൗ2ʕٙཀನૢಛમ͜࠰ಥৌਕ
note 2) జѓ๟ۆୋ9໮ࣛ

Financial assets that meet the following conditions are တԑɨΐૢ΁ʘږፄ༟ପ׵Չܝ
subsequently measured at amortised cost: મ͜ᛅቖϓ͉ࠇඎj

• the financial asset is held within a business model whose • ุਕᅼόʫהܵϞ˸ϗ՟Υ
objective is to collect contractual cash flows; and ߒତږݴඎʘږፄ༟ପiʿ

• the contractual terms give rise on specified dates to cash • Υߒૢಛ˿׵त֛˚ಂପ͛
flows that are solely payments of principal and interest on ʘତږݴඎසމ˕˹͉ږʿ
the principal amount outstanding. ͊Ꮅᒔ͉ږʘлࢹٙږፄ༟
ପf

Hong Kong Council for Accreditation of Academic and Vocational Qualifications 121
࠰ಥኪஔʿᔖุ༟ዝ൙ᄲ҅