Page 135 - Annual Report 2019

132 ANNUAL REPORT 2019 QFC REGULATORY AUTHORITY FINANCIAL STATEMENTS

17. Fair Values of Financial Instruments

Financial instruments include financial assets and liabilities. The QFC
Regulatory Authority does not have any financial assets or financial
liabilities which are measured at fair value. The fair values of financial
instruments are not materially different from their carrying values.

18. Significant Assumptions, Estimates and Judgements

The preparation of the QFC Regulatory Authority’s financial Useful lives of intangible assets Going concern
statements requires management to make judgements, The QFC Regulatory Authority’s management determines The QFC Regulatory Authority’s management has made
estimates and assumptions that affect the reported the estimated useful lives of its intangible assets with an assessment of its ability to continue as a going concern
amounts recognised in the financial statements and finite life time for calculating amortisation. The estimate and is satisfied that the QFC Regulatory Authority has
certain disclosures. However, uncertainty about these is determined after considering the expected usage the resources to continue in business for the foreseeable
assumptions and estimates could result in outcomes of the intangible asset or technological obsolescence. future. Furthermore, the management is not aware of any
that could require a material adjustment to the carrying Management reviews the useful lives annually; future material uncertainties that may cast significant doubt
amount of the asset or liability affected in future periods.
amortisation charge is adjusted where the management upon the QFC Regulatory Authority’s ability to continue
believes the useful lives differ from previous estimates. as a going concern. Therefore, the financial statements
The key assumptions concerning the future and other continue to be prepared on a going concern basis.
key sources of estimation uncertainty at the reporting
date that have a significant risk of causing a material Leases - estimating the incremental borrowing rate
adjustment to the carrying amounts of assets and liabilities The QFC Regulatory Authority cannot readily determine
within the next financial year are described below. the interest rate implicit in the lease, therefore, it uses its
incremental borrowing rate (IBR) to measure lease liabilities.
Useful lives of furniture and equipment The IBR is the rate of interest that the QFC Regulatory
Authority would have to pay to borrow over a similar term,
The QFC Regulatory Authority’s management determines and with a similar security, the funds necessary to obtain an
the estimated useful lives of its furniture and equipment asset of a similar value to the right-of-use asset in a similar
for calculating depreciation. The estimate is determined economic environment. The IBR therefore reflects what the
after considering the expected usage of the asset or QFC Regulatory Authority ‘‘would have to pay’’, which requires
physical wear and tear. Management reviews the residual estimation when no observable rates are available. The QFC
value and useful lives annually; future depreciation Regulatory Authority estimates the IBR using observable
charge is adjusted where the management believes inputs (such as market interest rates) when available and
the useful lives differ from previous estimates.
is required to make certain entity-specific estimates.