Page 132 - 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

AFS financial assets ̙Զ̈ਯږፄ༟ପ

AFS financial assets are non-derivatives that are either ̙Զ̈ਯږፄ༟ପމܸ֛މ̙Զ
designated as AFS or are not classified as loans and ̈ਯږፄ༟ପאڢʱᗳމ൲ಛʿ
receivables, held-to-maturity investments or financial assets at ᏐϗಛධeܵϞЇՑಂҳ༟eאܲ
fair value through profit or loss. ʮʪᄆ࠽ΐሪԨίฦूʫஈଣٙ
ږፄ༟ପٙڢࠃ͛ʈՈf
Equity and debt instruments held by the Council that are ͉҅הܵϞʱᗳމ̙Զ̈ਯږፄ
classified as AFS financial assets and are traded in an active ༟ପ˲׵ݺᚔ̹ఙ൯ርٰٙୃʿ
market are measured at fair value at the end of each reporting වਕᗇՎܲ׵జѓಂ͋ٙʮʪᄆ
period. Changes in the carrying amount of AFS monetary ࠽ࠇඎfၾܲྼყлଟجࠇၑлࢹ
financial assets relating to interest income calculated using the ϗɝϞᗫ̙ٙԶ̈ਯ஬࿆ږፄ༟
effective interest method. Dividends on AFS equity instruments ପٙሪࠦ࠽ᜊਗʿ̙Զ̈ਯᛆू
are recognised in profit or loss when the Council’s right to ҳ༟ٰٙࢹ׵ฦूʕᆽႩf̙Զ̈
receive the dividends is established. Other changes in the ਯږፄ༟ପሪࠦ࠽ٙՉ˼ᜊਗ׵
carrying amount of AFS financial assets are recognised in other Չ˼ΌࠦϗूᆽႩdԨ׵ҳ༟ࠠП
comprehensive income and accumulated under the heading Ꮇ௪ଢ଼ࠇf׵ҳ༟̈ਯאᆽ֛̈ତ
of investment revaluation reserve. When the investment is ಯ࠽ࣛd΋ۃ׵ҳ༟ࠠПᎷ௪ଢ଼ࠇ
disposed of or is determined to be impaired, the cumulative ٙଢ଼ࠇϗूאฦ̰ึࠠอʱᗳЇ
gain or loss previously accumulated in the investments ฦू€Ԉɨ˖Ϟᗫږፄ༟ପಯ࠽ฦ
revaluation reserve is reclassified to profit or loss (see the ̰ٙึࠇ݁ഄf
accounting policy in respect of impairment loss on financial
assets below).

Loans and receivables ൲ಛʿᏐϗಛධ

Loans and receivables are non-derivative financial assets with ൲ಛʿᏐϗಛධܸԨڢ׵ݺᚔ̹
fixed or determinable payments that are not quoted in an ఙజᄆϾՈ௪ո֛א̙ᆽ֛˹ಛ
active market. Loans and receivables (including accounts and ږᕘٙڢࠃ͛ږፄ༟ପf൲ಛʿᏐ
other receivables and bank deposits and cash) are measured ϗಛධ€ܼ̍ᏐϗሪಛʿՉ˼Ꮠϗ
at amortised cost using the effective interest method, less any ಛධeვБπಛʿତږѩܲમ͜
impairment (see accounting policy in respect of on impairment ྼყлଟجࠇၑٙʊᛅቖϓ͉ಯ
loss on financial assets below). ΂Оಯ࠽ฦ̰ɝሪ€Ԉɨ˖Ϟᗫږ
ፄ༟ପಯ࠽ฦ̰ٙึࠇ݁ഄf
Interest income is recognised by applying the effective interest лࢹϗɝɗܲྼყлଟਿ๟ᆽ
rate, except for short-term receivables where the recognition of Ⴉdઓᅂᚤʔɽʘ೵ಂᏐϗಛධл
interest would be immaterial. ࢹᆽႩۆৰ̮f

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