Annual Report 2019
ANNUAL REPORT 2019 165 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2019 2. APPLICATION OF NEW AND AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) (continued) HKFRS 9 Financial Instruments In the current year, the Group has applied HKFRS 9 Financial Instruments and the related consequential amendments to other HKFRSs. HKFRS 9 introduces new requirements for (1) the classification and measurement of financial assets and financial liabilities, and (2) expected credit losses (“ECL”) for financial assets and contract assets and 3) general hedge accounting. The Group has applied HKFRS 9 in accordance with the transition provisions set out in HKFRS 9, i.e. applied the classification and measurement requirements (including impairment under ECL model) retrospectively to instruments that have not been derecognised as at 1 April 2018 (date of initial application) and has not applied the requirements to instruments that have already been derecognised as at 1 April 2018. The difference between carrying amounts as at 31 March 2018 and the carrying amounts as at 1 April 2018 are recognised in the opening retained profits and other components of equity, without restating comparative information. Accordingly, certain comparative information may not be comparable as comparative information was prepared under HKAS 39 Financial Instruments: Recognition and Measurement . Accounting policies resulting from application of HKFRS 9 are disclosed in note 3. Summary of effects arising from initial application of HKFRS 9 The table below illustrates the classification and measurement of financial assets and financial liabilities and other items subject to ECL under HKFRS 9 and HKAS 39 at the date of initial application, 1 April 2018. Available– for-sale investments Debtors, deposits and prepayment Investments held for trading Equity securities at FVTPL Investment funds Debt instruments at FVTPL Financial assets designated at FVTPL Structured deposits Notes HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 HK$’000 Closing balance at 31 March 2018 – HKAS 39 159,987 522,674 3,319,556 – – – 40,500 – Effect arising from initial application of HKFRS 9 Reclassification From available-for-sale investments (a) (159,987) 688 – 12,876 – 146,423 – – From held for trading (b) – – (3,319,556) 62,218 588,929 2,668,409 – – From financial assets designated at FVTPL (b) – – – – – – (40,500) 40,500 Opening balance at 1 April 2018 – 523,362 – 75,094 588,929 2,814,832 – 40,500
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