Page 125 - 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) (continued) ನૢಛમ͜࠰ಥৌਕజѓ๟ۆୋ
9໮ࣛ€ᚃ

(i) Significant increase in credit risk (i) ڦ൲ࠬᎈɽషᄣ̋

In assessing whether the credit risk has increased ׵൙Пڦ൲ࠬᎈІڋ֐ᆽႩ
significantly since initial recognition, the Council compares ˸ԸϞщɽషᄣ̋ࣛd͉҅
the risk of a default occurring on the financial instrument ˢ༰ږፄʈՈ׵జѓ˚ಂ̈
as at the reporting date with the risk of a default ତ༼ߒٙࠬᎈၾ༈ږፄʈՈ
occurring on the financial instrument as at the date of ׵ڋ֐ᆽႩ˚ಂ̈ତ༼ߒٙ
initial recognition. In making this assessment, the Council ࠬᎈfЪϤ൙Пࣛd͉҅ึ
considers both quantitative and qualitative information ϽᅇΥଣԨ̙˕౪ٙඎʷʿ
that is reasonable and supportable, including historical ሯඎ༟ࣘdܼ̍ཀֻ຾᜕ʿ
experience and forward-looking information that is ೌცڀ൬ʔ̀ࠅϓ͉אʈЪ
available without undue cost or effort. у̙ᐏ੻ٙۃᓼ׌༟ࣘf

In particular, the following information is taken into ˈՉ݊d൙Пڦ൲ࠬᎈϞщ
account when assessing whether credit risk has increased ɽషᄣ̋ࣛึϽᅇɨΐ༟
significantly: ࣘj

• an actual or expected significant deterioration in the • ږፄʈՈ̮ޢ€νϞ
financial instrument’s external (if available) or internal אʫ௅ڦ൲൙ॴٙྼ
credit rating; ყאཫಂࠠɽెʷi

• significant deterioration in external market indicators • ڦ൲ࠬᎈ̮ٙޢ̹ఙ
of credit risk, e.g. a significant increase in the ܸᅺٙࠠɽెʷdԷν
credit spread, the credit default swap prices for the ڦ൲ࢹࢨɽషᄣ̋dව
debtor; ਕɛٙڦ൲༼ߒદಂ
ᄆɽషɪʺi

Hong Kong Council for Accreditation of Academic and Vocational Qualifications 125
࠰ಥኪஔʿᔖุ༟ዝ൙ᄲ҅