Page 130 - 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

(v) Measurement and recognition of ECL (continued) (v) ཫಂڦ൲ฦ̰ٙࠇඎʿᆽႩ
€ᚃ

Generally, the ECL is the difference between all ɓছϾԊdཫಂڦ൲ฦ̰ʘ
contractual cash flows that are due to the Council in Пࠇɗ͉҅࣬ኽΥߒᏐϗٙ
accordance with the contract and the cash flows that the הϞΥߒତږݴඎၾ͉҅ཫ
Council expects to receive, discounted at the effective ಂϗ՟ٙהϞତږݴඎʘග
interest rate determined at initial recognition. ٙࢨᕘdԨܲڋ֐ᆽႩࣛᔾ
֛ٙྼყлଟ൨ତf

Where ECL is measured on a collective basis or cater for ࡊཫಂڦ൲ฦ̰˸ණ᜗ਿᓾ
cases where evidence at the individual instrument level ࠇඎdא০࿁ࡈйʈՈᄴࠦ
may not yet be available, the financial instruments are ᗇኽ֠ʔ̙੻ʘઋرdۆږ
categorised according to the risk type (i.e. credit-impaired, ፄʈՈึԱ๫˸ɨϽඎϾ࣬
high risk, normal risk and low risk) by considering: ኽՉࠬᎈᗳۨ̋˸ʱᗳ€Է
νjڦ൲ಯ࠽e৷ࠬᎈeɓছ
ࠬᎈձЭࠬᎈj
• Past-due status; and • གྷಂًرi˸ʿ

• Nature, size and industry of debtors. • වਕɛ׌ሯe஝ᅼʿБ
ุf
The grouping is regularly reviewed by management to ၍ଣᄴ֛ಂ࿁ʱᗳଡ଼йආБ
ensure the constituents of each category continue to Ꮸীd˸ᆽڭ΢ଡ଼ϓ௅ʱᘱ
share similar credit risk characteristics. ᚃՈϞᗳЧڦ൲ࠬᎈतᅄf

Interest income is calculated based on the gross carrying лࢹϗɝ࣬ኽږፄ༟ପٙሪ
amount of the financial asset unless the financial asset ࠦ࠽ᐼᕘࠇၑdઓږፄ༟ପ
is credit impaired, in which case interest income is މڦ൲ಯ࠽ٙઋرৰ̮d׵
calculated based on amortised cost of the financial asset. Ϥઋرɨdлࢹϗɝɗ࣬ኽ
ږፄ༟ପٙᛅቖϓ͉ࠇၑf

The Council recognises an impairment loss in profit or ͉҅ீཀሜ዆ږፄʈՈٙሪ
loss for all financial instruments by adjusting their carrying ࠦ࠽ਗ਼ՉהϞಯ࠽ฦ̰׵ฦ
amount, with the exception of accounts receivable where ूʕᆽႩdઓᏐϗሪಛ޴Ꮠ
the corresponding adjustment is recognised through a ٙሜ዆׵ฦ̰ᅡ௪ᆽႩf
loss allowance account.

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