Page 134 - 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 (before application of HKFRS 9 ږፄ༟ପಯ࠽€׵ɚཧɓɞϋ̬
on 1 April 2018) (continued) ˜ɓ˚Ꮠ͜࠰ಥৌਕజѓ๟ۆୋ
9໮˸ۃ€ᚃ

For certain categories of financial assets, such as accounts Ꮠϗሪಛධഃ஗൙Пމڢࡈйಯ
receivable, assets that are assessed not to be impaired ࠽ٙ߰ʍږፄ༟ପᗳйd̤̮ܲ዆
individually are, in addition, assessed for impairment on a ᜗ਿ๟ආБಯ࠽൙ПfᏐϗಛධଡ଼
collective basis. Objective evidence of impairment for a portfolio Υٙ܄ᝈಯ࠽ᗇኽ̙ܼ͉̍҅ٙ
of receivables could include the Council’s past experience of ཀֻϗಛ຾᜕eଡ଼Υʫַ፰ᒔಛЇ
collecting payments, an increase in the number of delayed ൴གྷڦ൲ಂ֚ٙᅰᄣ̋d˸ʿၾᏐ
payments in the portfolio past the average credit period, as well ϗಛධགྷಂϞᗫٙΌ਷אή˙຾
as observable changes in national or local economic conditions ᏶ًر׼ᜑҷᜊf
that correlate with default on receivables.

For financial assets that are carried at amortised cost, the ఱܲʊᛅቖϓ͉ΐሪٙږፄ༟ପ
amount of the impairment loss recognised is the difference ϾԊdಯ࠽ฦ̰ږᕘܲ༟ପٙሪࠦ
between the asset’s carrying amount and the present value of ࠽ၾܲږፄ༟ପڋ֐ྼყлଟ൨
estimated future cash flows discounted at the financial asset’s ତٙПࠇ͊Ըତږݴඎତ࠽ගٙ
original effective interest rate. ࢨᕘᆽႩf

The carrying amount of the financial asset is reduced by the ৰᏐϗሪಛٙሪࠦ࠽ึீཀᅡ௪
impairment loss directly for all financial assets with the exception ሪЪ̈ϔಯ̮dהϞږፄ༟ପٙಯ
of accounts receivable, where the carrying amount is reduced ࠽ฦ̰ึٜટ׵ږፄ༟ପٙሪࠦ
through the use of an allowance account. Changes in the ࠽ʕϔಯfࡊᏐϗሪಛ஗ൖމೌج
carrying amount of the allowance account are recognised ϗΫdۆ׵ᅡ௪ሪ࿛ቖfνՉܝϗ
in profit or loss. When an account receivable is considered Ϋཀֻ࿛ቖٙಛධdۆࠇɝฦू
uncollectible, it is written off against the allowance account. ʫfᅡ௪ሪٙሪࠦ࠽ᜊਗ׵ฦूʫ
Subsequent recoveries of amounts previously written off are ᆽႩf
credited against to profit loss.

When an AFS financial asset is considered to be impaired, ࡊ̙Զ̈ਯږፄ༟ପൖЪಯ࠽d
cumulative gains or losses previously recognised in other ΋ۃ׵Չ˼ΌࠦϗɝʫᆽႩٙଢ଼
comprehensive income are reclassified to profit or loss in the ࠇฦू׵೯͛ಯ࠽ٙಂගࠠอʱ
period. ᗳЇฦूf

134 Hong Kong Council for Accreditation of Academic and Vocational Qualifications
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