Page 119 - Annual Report 2016 EN

119 |

cost less accumulated amortisation. It is being amortised on a Financial assets
straight line basis over a period of five years commencing when the Initial recognition and measurement
asset is available for its intended use. This expense is reported as an Financial assets are classified, at initial recognition, as financial
administration expense in the statement of comprehensive income.
assets at fair value through profit or loss, loans and receivables,
Subsequent expenditure is only capitalised when it increases the held-to-maturity investments, available-for-sale financial assets, or
future economic benefits embodied in the specific asset to which as derivatives designated as hedging instruments in an effective
it relates. Where no intangible asset can be recognised, develop- hedge, as appropriate. All financial assets are recognised initially
ment expenditure is charged to the statement of comprehensive at fair value plus, in the case of financial assets not recorded at
income when incurred. fair value through profit or loss, transaction costs that are attribut-
able to the acquisition of the financial asset. The QFC Regulatory
Expenditure on research or on the research phase of an internal
project is recognised as an expense in the period in which it is Authority determines the classification of its financial assets at initial
incurred. recognition.
Purchases or sales of financial assets that require delivery of assets
Furniture and equipment within a time frame established by regulation or convention in the
Furniture and equipment are stated at cost, net of accumulated marketplace (regular way purchases) are recognised at trade
depreciation and accumulated impairment losses, if any. Capital date, i.e., the date that the QFC Regulatory Authority commits to
work in progress is carried at cost.
purchase or sell the asset.
Depreciation is calculated on a straight-line basis over the esti- The QFC Regulatory Authority’s financial assets include interest and
mated useful lives of the assets as follows: other receivables, amount due from related parties, bank balances
Furniture and fixtures 3 years and cash.

Office equipment 3 years Subsequent measurement
Leasehold improvements lesser of 3 years or leasehold period The subsequent measurement of financial assets depends on their
classification as described below:
Expenditure incurred to replace a component of an item of furni-
ture and equipment that is accounted for separately is capitalised Receivables
and the carrying amount of the component that is replaced is Receivables are non-derivative financial assets with fixed or deter-
written-off. Other subsequent expenditure is capitalised only when minable payments that are not quoted in an active market. After
it increases future economic benefits of the related item of furniture initial measurement, such financial assets are subsequently mea-
and equipment. All other expenditure is recognised in the state- sured at amortised cost using the effective interest method, less
ment of comprehensive income as the expense is incurred. An item impairment. Gains and losses are recognised in the statement of
of furniture and equipment is derecognised upon disposal or when comprehensive income when the receivables are derecognised
no future economic benefits are expected from its use or disposal. or impaired, as well as through the amortisation process.
Any gain or loss arising on derecognition of the asset (calculated Fees receivables are stated at original invoice amount net of pro-
as the difference between the net disposal proceeds and the visions for amounts estimated to be non-collectible.
carrying amount of the asset) is included in the statement of
comprehensive income in the year the asset is derecognised. Derecognition
The residual values, useful lives and methods of depreciation of A financial asset (or, where applicable a part of a financial asset
furniture and equipment are reviewed at each financial year end or part of a group of similar financial assets) is derecognised when:
and adjusted prospectively, if appropriate. • The rights to receive cash flows from the asset have expired (or)

• The QFC Regulatory Authority has transferred its rights to