Page 124 - 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

Financial assets (continued) ږፄ༟ପ€ᚃ

Impairment of financial assets (upon application HKFRS 9 with ږፄ༟ପಯ࠽€࣬ኽڝൗ2ʕٙཀ
transitions in accordance with note 2) ನૢಛમ͜࠰ಥৌਕజѓ๟ۆୋ
9໮ࣛ
The Council recognises a loss allowance for ECL on financial ͉҅࣬ኽ࠰ಥৌਕజѓ๟ۆୋ9໮
assets which are subject to impairment under HKFRS 9 ఱ೯͛ಯ࠽ʘږፄ༟ପ€ܼ̍Չ˼
(including accounts and other receivables, contract assets ᏐϗಛධeΥߒ༟ପձვБπಛ
and bank deposits). The amount of ECL is updated at each ᆽႩཫಂڦ൲ฦ̰ٙฦ̰ᅡ௪f
reporting date to reflect changes in credit risk since initial ཫಂڦ൲ฦ̰ٙږᕘ׵΢జѓ˚
recognition. ಂһอd˸ˀ݈Іڋ֐ᆽႩܝڦ൲
ࠬᎈٙᜊʷf
Lifetime ECL represents the ECL that will result from all possible ዆ࡈπᚃಂʫཫಂڦ൲ฦ̰ܸਗ਼
default events over the expected life of the relevant instrument. ޴ᗫʈՈٙཫಂԴ͜ಂʫהϞ̙
In contrast, 12-month ECL (“12m ECL”) represents the portion ঐٙ༼ߒԫ΁ପ͛ʘཫಂڦ൲ฦ
of lifetime ECL that is expected to result from default events ̰f޴ˀd12ࡈ˜ʫཫಂڦ൲ฦ̰
that are possible within 12 months after the reporting date. €˜12ࡈ˜ʫཫಂڦ൲ฦ̰™ਗ਼ཫ
Assessment are done based on the Council’s historical credit ಂ׵జѓ˚ಂܝ12ࡈ˜ʫ̙ঐ೯
loss experience, adjusted for factors that are specific to the ͛ٙ༼ߒԫ΁ኬߧʘ዆ࡈπᚃಂ
debtors, general economic conditions and an assessment of ʫཫಂڦ൲ฦ̰௅ʱf൙Пɗ࣬ኽ
both the current conditions at the reporting date as well as the ͉҅ٙዝ̦ڦ൲ฦ̰຾᜕ආБd
forecast of future conditions. Ԩ࣬ኽවਕɛतϞٙΪ९eɓছ຾
᏶ًر˸ʿ࿁జѓ˚ಂ຅ۃًر
ٙ൙П˸ʿ࿁͊Ըًرٙཫ಻Ъ
̈ሜ዆f

The Council always recognises lifetime ECL for accounts ͉҅ึ຾੬ఱᏐϗሪಛʿΥߒ༟
receivable and contract assets. The ECL on these assets are ପᆽႩ዆ࡈπᚃಂʫཫಂڦ൲ฦ
assessed collectively using a provision matrix with appropriate ̰f༈ഃ༟ପٙཫಂڦ൲ฦ̰Դ͜
groupings. ՈϞቇ຅ʱଡ଼ٙ๟௪ॉ৬ආБණ
᜗൙Пf
For all other instruments, the Council measures the loss ࿁׵הϞՉ˼ʈՈd͉҅ࠇඎٙ
allowance equal to 12m ECL, unless when there has been a ฦ̰ᅡ௪ഃ׵12ࡈ˜ཫಂڦ൲ฦ
significant increase in credit risk since initial recognition, the ̰dৰڢІڋ֐ᆽႩܝڦ൲ࠬᎈᜑ
Council recognises lifetime ECL. The assessment of whether ഹᄣ̋d͉҅ۆᆽႩ዆ࡈπᚃಂʫ
lifetime ECL should be recognised is based on significant ཫಂڦ൲ฦ̰f݊щᏐᆽႩ዆ࡈπ
increases in the likelihood or risk of a default occurring since ᚃಂʫཫಂڦ൲ฦ̰ٙ൙Пɗਿ
initial recognition. ׵Іڋ֐ᆽႩ˸Ը೯͛༼ߒʘ̙
ঐ׌אࠬᎈٙᜑഹᄣ̋f

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