Page 111 - Annual Report 2019

108 ANNUAL REPORT 2019 QFC REGULATORY AUTHORITY FINANCIAL STATEMENTS

3.3 Summary of significant
accounting policies

Standards issued but not yet effective Revenue recognition Appropriations from the government
The standards and interpretations that are issued, but Fee income earned from services that are provided Appropriations from the government are recognised at
not yet effective, up to the date of issuance of the QFC over a certain period of time. Fee income earned for their fair value when there is a reasonable assurance that the
Regulatory Authority’s financial statements are disclosed the provision of services over a period of time is appropriations will be received by the QFC Regulatory Authority
below. The QFC Regulatory Authority intends to adopt these accrued over that period. This includes annual license and are recognised in the statement of comprehensive
standards, if applicable, when they become effective. fees earned from regulated entities. Fee income arising income over the period necessary to match them with the costs
on application processing is non-refundable and, that they are intended to compensate. The excess appropriations
Topics Effective date accordingly, is recognised as income when received. provided by the government are treated as appropriations
received in advance under accounts payable and accrual and
IFRS 17 Insurance Contracts 1 January 2021 Financial penalties are carried forward to next year.
Under the Financial Services Regulations (FSR), the QFC
Amendments to IFRS 10 and IAS 28: Deferred Regulatory Authority has the power to impose financial Furniture and equipment
Sale or contribution of assets between an indefinitely penalties where it considers that a Person (as defined in Furniture and equipment are stated at cost, net of
investor and its associates or joint venture
the FSR) has contravened a relevant requirement set out accumulated depreciation and accumulated impairment
in Article 84 (1) of the FSR. The principles to be followed losses, if any. Depreciation is calculated on a straight-line
The QFC Regulatory Authority did not early adopt any by the QFC Regulatory Authority in determining the basis over the estimated useful lives of the assets as follows:
standards, interpretations or amendments that have been amount of any financial penalty to be imposed in respect
issued but are not yet effective. of such contraventions are set out in the QFC Regulatory Furniture and fixtures – 3 years
Authority’s “Enforcement Policy Statement 2012”. The Office equipment – 3 years
financial penalties are accounted on an accrual basis Leasehold improvements – Lower of 3 years or lease period
on the date stipulated in the order and the income is
reported in the statement of comprehensive income. Expenditure incurred to replace a component of an item of
furniture and equipment that is accounted for separately is
Interest income capitalised and the carrying amount of the component that
is replaced is written-off. Other subsequent expenditure is
Interest income is recognised on an accrual basis, capitalised only when it increases future economic benefits
using the effective interest rate method (EIR).
of the related item of furniture and equipment. All other
expenditure is recognised in the statement of comprehensive
income as the expense is incurred.