Page 154 - Annual Report 2017

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[16] SIGNIFICANT ASSUMPTIONS, Impairment of financial assets
ESTIMATES AND JUDGEMENTS An estimate of the collectible amount of financial assets is made
when collection of the full amount is no longer probable. For
The preparation of the QFC Regulatory Authority’s financial state- individually significant amounts, this estimation is performed on an
ments requires management to make judgements, estimates and individual basis. Amounts which are not individually significant, but
assumptions that affect the reported amounts recognised in the which are past due, are assessed collectively and an allowance
financial statements and certain disclosures. However, uncertainty is applied according to the length of time past due, based on
about these assumptions and estimates could result in outcomes historical recovery rates.
that could require a material adjustment to the carrying amount At end of reporting period, financial assets were USD 3,714 thousand
of the asset or liability affected in future periods.
(2016: USD 1,355 thousand) with no allowance for impairment (2016:
The key assumptions concerning the future and other key sources Nil). Any difference between the amounts actually collected in
of estimation uncertainty at the reporting date, that have a signifi- future periods and the amounts expected will be recognised in the
cant risk of causing a material adjustment to the carrying amounts statement of comprehensive income.
of assets and liabilities within the next financial year, are described
below. Going concern
The QFC Regulatory Authority’s management has made an
Useful lives of furniture and equipment assessment of the QFC Regulatory Authority’s ability to continue as
The QFC Regulatory Authority’s management determines the esti- a going concern and is satisfied that the QFC Regulatory Authority
mated useful lives of its furniture and equipment for calculating has the resources to continue in business for the foreseeable future.
depreciation. The estimate is determined after considering the Furthermore, the management is not aware of any material
expected usage of the asset or physical wear and tear. Manage- uncertainties that may cast significant doubt upon the QFC
ment reviews the residual value and useful lives annually and future Regulatory Authority’s ability to continue as a going concern.
depreciation charge would be adjusted where the management Therefore, the financial statements continue to be prepared on a
believes the useful lives differ from previous estimates. going concern basis.

Useful lives of intangible assets
The QFC Regulatory Authority’s management determines the
estimated useful lives of its intangible assets with finite lifetime for
calculating amortisation. The estimate is determined after consid-
ering the expected usage of the intangible asset or technological
obsolescence. Management reviews the useful lives annually and
future amortisation charge would be adjusted where the manage-
ment believes the useful lives differ from previous estimates.