Page 153 - 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

21. Financial Instruments (continued) 21. ږፄʈՈ€ᚃ

Financial risk management objectives ৌਕࠬᎈ၍ଣͦᅺʿ݁ഄ
and policies (continued) €ᚃ

Credit risk and impairment assessment (continued) ڦ൲ࠬᎈၾಯ࠽൙П€ᚃ

The Council’s internal credit risk grading assessment comprises ͉҅ʫ௅ڦ൲ࠬᎈഃॴ൙Пܼ̍
the following categories: ˸ɨᗳйj

Internal credit Description Accounts receivable/ Other
rating contract assets financial assets
ʫ௅ڦ൲൙ॴ Ⴍ׼ ᏐϗሪಛŊΥߒ༟ପ Չ˼ږፄ༟ପ
Low risk The counterparty has a low risk of Lifetime ECL – 12m ECL
Эࠬᎈ default and does not have any past- not credit-impaired 12ࡈ˜ʫཫಂڦ൲ฦ̰
due amounts ዆ࡈπᚃಂʫཫಂڦ൲
ʹ׸࿁˓༼ߒࠬᎈЭdӚϞ΂Оགྷಂ ฦ̰Ñڦ൲͊ಯ࠽
ږᕘ

Normal risk Debtor frequently repays after due Lifetime ECL – 12m ECL
ɓছࠬᎈ dates but usually settle after due date not credit-impaired 12ࡈ˜ʫཫಂڦ൲ฦ̰
වਕɛ຾੬ίՑಂ˚ʘܝᒔಛdШஷ ዆ࡈπᚃಂʫཫಂڦ൲
੬ίՑಂ˚ʘܝഐၑ ฦ̰Ñڦ൲͊ಯ࠽

High risk There have been significant increases Lifetime ECL – Lifetime ECL –
৷ࠬᎈ in credit risk since initial recognition not credit-impaired not credit-impaired
through information developed ዆ࡈπᚃಂʫཫಂڦ൲ ዆ࡈπᚃಂʫཫಂڦ൲
internally ฦ̰Ñڦ൲͊ಯ࠽ ฦ̰Ñڦ൲͊ಯ࠽
ІԱኽʫ௅༟ৃڋ֐ᆽႩ˸Ըdڦ൲
ࠬᎈᜑഹᄣ̋

Loss There is evidence indicating the asset Lifetime ECL – Lifetime ECL –
ฦ̰ is credit-impaired credit-impaired credit-impaired
Ϟᗇኽڌ׼༈༟ପڦ൲ʊಯ࠽ ዆ࡈπᚃಂʫཫಂڦ൲ ዆ࡈπᚃಂʫཫಂڦ൲
ฦ̰Ñڦ൲ʊಯ࠽ ฦ̰Ñڦ൲ʊಯ࠽
Write-off There is evidence indicating that the Amount is written off Amount is written off
ൗቖ debtor is in severe financial difficulty ږᕘʊൗቖ ږᕘʊൗቖ
and the Council has no realistic
prospect of recovery
Ϟᗇኽڌ׼වਕɛϞᘌࠠٙৌ݁Ѣ
ᗭd͉҅ྼყཫಂՉʔ̙ܨూ

Hong Kong Council for Accreditation of Academic and Vocational Qualifications 153
࠰ಥኪஔʿᔖุ༟ዝ൙ᄲ҅