Annual Report 2020

98 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 綜合財務報表附註 FOR THE YEAR ENDED 31ST DECEMBER, 2020 截至二零二零年十二月三十一日止年度 HOP FUNG GROUP HOLDINGS LIMITED 合豐集團控股有限公司 3. 綜合財務報表編製基準及主要會計政策 （續） 主要會計政策 （續） 金融工具 （續） 財務資產（續） 財務資產減值 （續） (iv) 撇銷政策 當資料顯示交易夥伴處於嚴重財困及無實際 收回可能時（例如交易夥伴被清盤或已進入破 產程序時），本集團則撇銷財務資產。經考 慮法律意見後（倘合適），遭撇銷的財務資產 可能仍須按本集團收回程序進行強制執行方 式。撇銷構成取消確認事項。任何其後收回 在損益中確認。 (v) 預期信貸虧損之計量及確認 預期信貸虧損之計量為違約概率、違約虧損 （即違約時虧損幅度）及違約風險之函數。違 約概率及違約虧損之評估乃基於過往數據及 前瞻性資料。預期信貸虧損的預估乃無偏概 率加權平均金額，以各自發生違約的風險為 權重確定。 3. BASIS OF PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS AND SIGNIFICANT ACCOUNTING POLICIES (Continued) Significant accounting policies (Continued) Financial instruments (Continued) Financial assets (Continued) Impairment of financial assets (Continued) (iv) Write-off policy The Group writes off a financial asset when there is information indicating that the counterparty is in severe financial difficulty and there is no realistic prospect of recovery, for example, when the counterparty has been placed under liquidation or has entered into bankruptcy proceedings. Financial assets written off may still be subject to enforcement activities under the Group’s recovery procedures, taking into account legal advice where appropriate. A write-off constitutes a derecognition event. Any subsequent recoveries are recognised in profit or loss. (v) Measurement and recognition of ECL The measurement of ECL is a function of the probability of default, loss given default (i.e. the magnitude of the loss if there is a default) and the exposure at default. The assessment of the probability of default and loss given default is based on historical data and forward-looking information. Estimation of ECL reflects an unbiased and probability-weighted amount that is determined with the respective risks of default occurring as the weights.