Page 129 - 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

(iv) Write-off policy (iv) ൗቖ݁ഄ

The Council writes off a financial asset when there is ຅Ϟ༟ৃڌ׼ʹ׸࿁˙ஈ׵
information indicating that the counterparty is in severe ᘌࠠٙৌਕѢྤ˲ӚϞତྼ
financial difficulty and there is no realistic prospect of ܨూۃ౻ࣛ€Էνj຅ʹ׸
recovery, for example, when the counterparty has been ࿁˙ʊஈ׵૶ᆵאʊආɝॎ
placed under liquidation or has entered into bankruptcy ପ೻ҏdא຅Ꮠϗሪಛږᕘ
proceedings, or in the case of accounts receivable, when ʊགྷಂ2ϋࣛd՟೯͛༰Ϙ
the amounts are over two years past due, whichever ٫d͉҅ึൗቖ༈ږፄ༟
occurs sooner. Financial assets written off may still be ପfϽᅇՑجܛܔᙄdίቇ
subject to enforcement activities under the Council’s ຅ઋرɨd஗ൗቖٙږፄ༟
recovery procedures, taking into account legal advice ପʥ̙ঐί͉҅ٙ৛Ꮅ೻ҏ
where appropriate. A write-off constitutes a derecognition ɨաՑ੶ՓੂБfൗቖ࿴ϓ
event. Any subsequent recoveries are recognised in profit ୞˟ᆽႩԫ΁d˚ܝϗΫٙ
or loss. ಛධ׵ฦूʕᆽႩf

(v) Measurement and recognition of ECL (v) ཫಂڦ൲ฦ̰ٙࠇඎʿᆽႩ

The measurement of ECL is a function of the probability ཫಂڦ൲ฦ̰ٙࠇඎԱኽމ
of default, loss given default (i.e. the magnitude of the ༼ߒ฿ଟe༼ߒฦ̰ଟ€у
loss if there is a default) and the exposure at default. ༼ߒࣛٙฦ̰೻ܓʿ༼ߒ
The assessment of the probability of default and loss ࠬᎈٙՌᅰf൙П༼ߒ฿ଟ
given default is based on historical data adjusted by ʿ༼ߒฦ̰ଟٙԱኽ݊ཀ
forward-looking information. Estimation of ECL reflects ֻ༟ࣘdԨܲۃᓼ׌༟ࣘሜ
an unbiased and probability-weighted amount that is ዆fཫಂڦ൲ฦ̰ʘПၑˀ
determined by the respective risks of default. ݈əೌ਋ʿ˸೯͛༼ߒࠬ
ᎈˢࠠϾᔾ֛ٙ฿ଟ̋ᛆږ
ᕘf

Hong Kong Council for Accreditation of Academic and Vocational Qualifications 129
࠰ಥኪஔʿᔖุ༟ዝ൙ᄲ҅