Financial Report 2019

Notes to the Consolidated Financial Statements 合併財務報表附註 The University of Hong Kong 香港大學 23 1. PRINCIPAL ACCOUNTING POLICIES – Cont’d (b) Changes in accounting policies – Cont’d (ii) HKFRS 9 Financial Instruments – Impact of adoption – Cont’d (b) Impairment of financial assets – Cont’d The Group applies the HKFRS 9 simplified approach to measure expected credit losses which uses a lifetime expected loss allowance for accounts receivable. All of the Group’s debt investments and d e p o s i t s a t amo r t i s e d c o s t a n d l o a n s receivable are considered to have low credit risk, and the loss allowance recognised during the year was therefore limited to 12 months expected losses. Management consider ‘low credit risk’ for most of the listed bonds with an investment grade credit rating with at least one major rating agency. Other instruments are considered to be low credit risk when they have a low risk of default and the issuer has a strong capacity to meet its contractual cash flow obligations in the near term. To estimate the required impairment provision, managements assessed historical collection rates of these financial assets and considers adjustments for future expectations. There is no material impact on the consolidated financial statements from the application of the expected credit loss model on these financial assets. (iii) HKFRS 15 Revenue f r om Con t r ac t s w i t h Customers – Impact of adoption HKFRS 15 establishes a comprehensive framework for income recognition. It introduces a five-step model in order to determine when and how to recognise income. Income is recognised when an entity transfers control of goods or services to a customer at the amount to which the entity expects to be entitled. Depending on the terms of the contract and the laws that apply to the contract, control of the good or service may be transferred over time or at a point in time. The implementation of this new standard does not have a material impact to the income recognition of the Group. 1. 主要會計政策－續 (b) 會計政策變動－續 (ii) 香港財務報告準則第 9 號「金融 工具」－採納之影響－續 (b) 財務資產減值－續 就所有應收賬項，機構應 用香港財務報告準則第 9 號 之簡化處理方法，使用全 期預期虧損撥備計量預期 信貸虧損。 機構在按攤銷成本列賬之 財務資產計算之所有債務 投資及存款及應收貸款均 被視為信貸風險較低，因 此於年內確認之虧損撥備 僅限於十二個月內之預期 虧損。管理層認為大部分 上市債券之「低信貸風險」 至少由一家主要之評級機 構評定為投資級之信貸評 級。其他工具在違約風險 較低且發行人在短期內具 有較強之履行合約現金流 量義務之能力時被視為信 貸風險較低。 為估計所需的減值撥備， 管理層將評估各營運實體 的過往收款率，並非考慮 對未來預期作出調整。對 該財務資產預期信貸虧損 模式不會對分併財務報表 造成重大影響。 (iii) 香港財務報告準則第 15 號「客戶 合約收入」－採納之影響 香港財務報告準則第 15 號為確 認收益建立一個框架，並引入 五個步驟以釐定何時及如何確 認收入。當貨物或服務的控制 權轉移給客戶時，該實體以預 期有權獲得的金額確認收入。 視乎合約條款和相關法律，貨 物或服務的控制權可隨著時間 或於某一時點轉移。此新準則 之實施對本機構收益確認不會 造成重大影響。 Notes to the Consolidated Financial Statements 合併財務報表附註 2019 Financial Report 二零一九財務報告 24 1. PRINCIPAL ACCOUNTING POLICIES – Cont’d (c) Consolidation The conso l i da t ed f i nanc i a l s t a t emen t s i nc l ude the financial statements of the University and its subsidiaries made up to 30 June. A subsidiary is an entity over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. (i) Business combinations The Gr oup app l i e s t he acqu i s i t i on me t hod t o accoun t f o r bus i ness comb i na t i ons . The consideration transferred for the acquisition of a subsidiary is the fair values of the assets transferred, the liabilities incurred or assumed to the former owners of the acquiree and the equity instruments issued by the Group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The Group recognises any non-controlling interest in the acquiree, on an acquisition-by-acquisition basis, either at fair value or at the non-controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets. If the business combination is achieved in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such re-measurement are recognised in the consolidated statement of comprehensive income. Any contingent consideration to be transferred by the Group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is deemed to be an asset or liability is recognised i n a c co r da n c e w i t h HKFRS 9 e i t h e r i n t h e consolidated statement of comprehensive income or as a change to other comprehensive income. Contingent consideration that is classified as equity is not remeasured, and its subsequent settlement is accounted for within equity. 1. 主要會計政策－續 (c) 合併賬目 合併財務報表包括本大學及其附屬 公司截至六月三十日止之賬目。 附屬公司指本機構對其具有控制權 的主體。當本機構因為參與該主體 而承擔可變回報的風險或享有可變 回報的權益，並有能力透過其對該 主體的權力影響此等回報時，本機 構即控制該主體。附屬公司在控制 權轉移至本機構之日合併入賬。附 屬公司在控制權終止之日起停止合 併入賬。 (i) 業務合併 本機構採用會計收購法計算業 務合併。收購附屬公司之轉讓 代價為所轉讓資產、對被收購 方的前所有人產生或承擔的負 債及本機構所發行股本權益之 公平值。所轉讓代價包括或然 代價安排產生之任何資產或負 債之公平值。收購相關成本於 產生時列為開支。於業務合併 時所收購之可識別資產及所承 擔之負債及或然負債，初步按 收購日之公平值計量。按逐項 收購基準，本機構可按公平值 或按非控制性權益應佔被購買 方可辨認資產淨值的比例，計 量被收購入非控制性權益。 如業務合併分階段進行，收購 方先前在被收購方持有權益於 收購日期的賬面值，按收購日 期的公平值重新計量，重新計 量產生的任何盈虧在合併綜合 收益表入賬。 本機構將轉讓的任何或然對價 按收購日期的公平值計量。被 視為資產或負債的或然對價公 平值的其後變動，根據香港財 務報告準則第 9 號的規定，在合 併綜合收益表或作為其他綜合 收益的變動確認。分類為權益 的或然對價不重新計量，其之 後的結算在權益中入賬。