Page 109 - Annual Report 2019

106 ANNUAL REPORT 2019 QFC REGULATORY AUTHORITY FINANCIAL STATEMENTS

3.2 Changes in accounting
policies and disclosures

New and amended standards and interpretations IFRS 16 Leases a) Nature of the effect of adoption of IFRS 16
adopted by the QFC Regulatory Authority
IFRS 16 supersedes IAS 17 Leases, IFRIC 14 Determining Impact on the statement of financial
The accounting policies adopted are consistent with those of whether an Arrangement contains a Lease, SIC-15 Operating position (increase/(decrease))
the previous financial year, except for the following new and Lease-Incentives and SIC-27 Evaluating the Substance of
amended IFRS recently issued by the International Accounting Transactions Involving the Legal Form of a Lease. The standard Assets 1 Jan 2019 | USD ‘000
Standards Board (IASB) effective as of 1 January 2019. sets out the principles for the recognition, measurement,
presentation and disclosure of leases and requires lessees to Right-of-use of assets 189
Standards Content Effective date account for all leases under a single on-balance sheet model. Furniture and equipment (181)
IFRS 16 Leases 1 January 2019 Lessor accounting under IFRS 16 is substantially unchanged Total assets 8
under IAS 17. Lessors will continue to classify leases as either
operating or finance leases using similar principles as in IAS 17.
The QFC Regulatory Authority applied, for the first time, IFRS Liabilities
16 Leases. The nature and effect of the changes as a result of The QFC Regulatory Authority adopted IFRS 16 using the
adoption of this new accounting standard is described below. Finance lease obligation (184)
modified retrospective method of adoption with the date of
initial application of 1 January 2019. Under this method, the
Several other amendments and interpretations apply for standard is applied retrospectively with the cumulative effect Lease liabilities 192
the first time in 2019, but do not have a material impact on of initially applying the standard recognised at the date of
the financial statements of the QFC Regulatory Authority. Total liabilities 8
initial application. The QFC Regulatory Authority elected to
use the transition practical expedient to not reassess whether The QFC Regulatory Authority has lease contracts for
a contract is, or contains a lease at 1 January 2019. Instead, building, office equipment and vehicles. Before the
the QFC Regulatory Authority applied the standard only to adoption of IFRS 16, the QFC Regulatory Authority classified
contracts that were previously identified as leases applying IAS each of its leases (as lessee) at the inception date as either
17 and IFRIC 4 at the date of initial application. The standard a finance lease or an operating lease. Refer to Note 3.3
provides specific transition requirements and practical Leases for the accounting policy prior to 1 January 2019.
expedients, which have been applied by the QFC Regulatory
Authority as such the QFC Regulatory Authority has not Upon adoption of IFRS 16, the QFC Regulatory Authority
recorded any adjustments to the opening retained surplus.
applied a single recognition and measurement approach
for all leases except for short-term leases and leases
of low-value assets. The standard provides specific
transition requirements and practical expedients, which
have been applied by the QFC Regulatory Authority.