Page 118 - Annual Report 2016 EN

| 118

Standards issued but not yet effective on the date stipulated in the order and the income is reported in
The standards and interpretations that are issued, but not yet effec- the statement of comprehensive income.
tive, up to the date of issuance of the QFC Regulatory Authority’s
financial statements are disclosed below. The QFC Regulatory Interest income
Authority intends to adopt these standards, if applicable, when Interest income is recognized on accrued basis, using the effective
they become effective. interest rate method (EIR).
Appropriations from the Government
Topic Effective date Appropriations from the Government are recognised at their fair
IFRS 9 Financial Instruments 1 January 2018 value when there is a reasonable assurance that the appropria-
tions will be received by the QFC Regulatory Authority, and are
IFRS 15 Revenue from Contracts 1 January 2018 recognised in the statement of activities over the period necessary
with Customers to match them with the costs that they are intended to compen-
IAS 7 Disclosure Initiative – 1 January 2017 sate. The excess appropriations provided by the Government are
Amendments to IAS 7 treated as appropriations received in advance under accounts
IAS 12 Recognition of Deferred 1 January 2017 payable and accrual and are carried forward to next year.
Tax Assets for Unrealised Losses -
Amendments to IAS 12 Intangible assets
IFRS 2 Classification and Measurement of 1 January 2018 Intangible assets include cost of computer software purchased
Share-based Payment Transactions - and software developed in-house. Intangible assets acquired sepa-
Amendments to IFRS 2 rately are measured on initial recognition at cost. Costs associated
with the development of software for internal use are capitalised
IFRS 16 Leases 1 January 2019
only if the design of the software is technically feasible, and the
QFC Regulatory Authority has both the resources and intent to
The QFC Regulatory Authority is assessing the impact of implemen- complete its development and ability to use it upon completion.
tation of these standards and has not early adopted any of the In addition, costs are only capitalised if the asset can be sepa-
above. rately identified, it is probable that the asset will generate future
economic benefits, and that the development cost of the asset
3.3 Summary of significant accounting policies can be measured reliably.
Revenue recognition
Fee income arising on application processing is non-refundable Only costs that are directly attributable to bringing the asset to
and accordingly is recognised as income when received. Annual working condition for its intended use are included in its measure-
license fees are recognised as income on a straight line basis over ment. These costs include all directly attributable costs necessary to
the period to which they relate. create, produce and prepare the asset to be capable of operating
in a manner intended by management.
Financial penalties
Under the Financial Services Regulations (FSR), the QFC Regulatory Intangible assets are carried at cost less accumulated amortisation
Authority has the power to impose financial penalties where it and impairment losses, if any. Those are amortised on a straight-line
considers that a Person (as defined in the FSR) has contravened a basis over a period of three years (except for the eXtensible Business
relevant requirement set out in Article 84 (1) of the FSR. The princi- Reporting Language (XBRL) software as mentioned in the following
ples to be followed by the QFC Regulatory Authority in determining paragraph and Microsoft Dynamics AX which is amortised over
the amount of any financial penalty to be imposed in respect of a period of five years), commencing when the asset is available
such contraventions are set out in the QFC Regulatory Authority’s for its intended use. This expense is reported as an administration
Financial Services (Financial Penalties and Public Censures) Policy expense in the statement of comprehensive income.
2009. The financial penalties are accounted on an accrual basis “eXtensible Business Reporting Language” software is carried at