NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
1
SIGNIFICANT ACCOUNTING POLICIES (Continued)
(c) Changes in accounting policies (Continued)
HKFRS 9, Financial instruments (Continued)
(ii) Credit losses
HKFRS 9 replaces the "incurred loss" model in HKAS 39 with the expected credit losses ("ECL”) model. The ECL model requires an ongoing measurement of credit risk associated with a financial asset and therefore recognises ECLS earlier than under the "incurred loss" accounting model in HKAS
39.
The Group applies the new ECL model to trade and other receivables. The adoption of the new ECL model has no significant impact to the financial statements of the Group.
HKFRS 15, Revenue from contracts with customers
HKFRS 15 establishes a comprehensive framework for recognising revenue and some costs from contracts with customers. HKFRS 15 replaces HKAS 18, Revenue, which covered revenue arising from sale of goods and rendering of services, and HKAS 11, Construction contracts, which specified the accounting for
construction contracts.
HKFRS 15 also introduces additional qualitative and quantitative disclosure requirements which aim to enable users of the financial statements to understand the nature, amount, timing and uncertainty of revenue and
cash flows arising from contracts with customers.
The Group has been impacted by HKFRS 15 in relation to timing of revenue recognition. Details of the changes in accounting policies are discussed below.
The Group has elected to use the retrospective method upon transition and has recognised the effect of initial application retrospectively to the each prior reporting period. Therefore, comparative information has been restated to be reported under HKFRS 15.
The following tables gives a summary of the transition adjustments recognised for each line item in the consolidated statement of financial position as at 31 December 2017, the consolidated statement of profit or loss and the consolidated cash flow statement for the year ended 31 December 2017.
Hong Kong Ferry (Holdings) Company Limited
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Annual Report 2018
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