NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c) Changes in accounting policies
The HKICPA has issued a number of new HKFRSS and amendments to HKFRSS that are first effective for the
current accounting period of the Group. Of these, the following developments are relevant to the Group's financial statements:
HKFRS 9, Financial instruments
HKFRS 15, Revenue from contracts with customers
The Group has not applied any new standard or interpretation that is not yet effective for the current accounting period.
HKFRS 9, Financial instruments
HKFRS 9 replaces HKAS 39, Financial instruments: recognition and measurement. It sets out the requirements for recognising and measuring financial assets, financial liabilities and some contracts to buy or
sell non-financial items.
The Group has applied HKFRS 9 retrospectively to items that existed at 1 January 2018 in accordance with the transition requirements. Therefore, comparative information continues to be reported under HKAS 39.
Further details of the nature and effect of the changes to previous accounting policies and the transition approach are set out below:
0
Classification of financial assets and financial liabilities
HKFRS 9 categories financial assets into three principal classification categories: measured at amortised cost, at fair value through other comprehensive income ("FVOCI") and at fair value through profit or loss ("FVPL”). These supersede HKAS 39's categories of held-to-maturity investments, loans and receivables, available-for-sale financial assets and financial assets measured at FVPL. The classification of financial assets under HKFRS 9 is based on the business model under which the financial asset is managed and its contractual cash flow characteristics. Under HKFRS 9, derivatives embedded in contracts where the host is a financial asset in the scope of the standard are not separated from the host. Instead, the hybrid instrument as a whole is assessed for classification.
Hong Kong Ferry (Holdings) Company Limited
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Annual Report 2018