Page 126 - 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 (continued) (i) ڦ൲ࠬᎈɽషᄣ̋€ᚃ

• existing or forecast adverse changes in business, • ุਕeৌਕא຾᏶ًر
financial or economic conditions that are expected ٙତϞאཫ಻ʔлᜊ
to cause a significant decrease in the debtor’s ability ਗdཫಂਗ਼ኬߧවਕɛ
to meet its debt obligations; ᄵБՉවਕப΂ٙঐ
ɢɽషɨࠥi
• an actual or expected significant deterioration in the • වਕɛ຾ᐄุᐶٙྼ
operating results of the debtor; ყאཫಂࠠɽెʷi
• an actual or expected significant adverse change • වਕɛ္၍e຾᏶אҦ
in the regulatory, economic, or technological ஔᐑྤٙྼყאཫಂ
environment of the debtor that results in a significant ࠠɽʔлᜊਗdኬߧව
decrease in the debtor’s ability to meet its debt ਕɛᄵБՉවਕப΂
obligations. ٙঐɢɽషɨࠥf

Irrespective of the outcome of the above assessment, ʔሞɪࠑ൙Пഐ؈νОd͉
the Council presumes that the credit risk has increased ҅પ಻ІΥߒ஝֛˹ಛགྷಂ
significantly since initial recognition when contractual 30˂ڋ֐ᆽႩৎdڦ൲ࠬᎈ
payments are more than 30 days past due, unless the ʊᜑഹᄣ̋dৰڢ͉҅ኹϞ
Council has reasonable and supportable information that Υଣ̙˕౪ٙ༟ৃdᗇ׼Ԩ
demonstrates otherwise. ڢνϤf
Despite the aforegoing, the Council assumes that the ኋ၍Ϟɪࠑ஝֛dШࡊ߰׵
credit risk on a financial instrument has not increased జѓ˚ᆽ֛ږፄʈՈٙڦ
significantly since initial recognition if the financial ൲ࠬᎈ༰Эdۆ͉҅৿֛І
instrument is determined to have low credit risk at the ڋ֐ᆽႩ˸Ըd༈ږፄʈՈ
reporting date. A financial instrument is determined to ٙڦ൲ࠬᎈԨ͊ᜑഹᄣ̋f
have low credit risk if i) the financial instrument has a low ࡊ߰i)ږፄʈՈՈϞЭ༼ߒ
risk of default (i.e. no default history), ii) the counterparty ࠬᎈ€уೌ༼ߒዝ̦iii)ʹ
has a strong capacity to meet its contractual cash flow ׸࿁˓Ϟ༰੶ٙঐɢί೵ಂ
obligations in the near term and iii) adverse changes in ʫᄵБՉΥߒତږݴ່ਕi
economic and business conditions in the longer term may, iii)ڗಂ຾᏶ձਠًุرٙʔ
but will not necessarily, reduce the ability of the borrower лᜊʷ̙ঐШʔɓ֛ึࠥЭ
to fulfil its contractual cash flow obligations. ࠾ಛɛᄵБՉΥߒତږݴ່
ਕٙঐɢdۆᆽ֛༈ږፄʈ
ՈՈϞЭڦ൲ࠬᎈf

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