Page 116 - Annual Report 2020

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Amendments to IFRS 10 Consolidated Financial
Statements and IAS 28 Investments in Associates
and Joint Ventures (2011) relating to the treatment
of the sale or contribution of assets from and
investor to its associate or joint venture.
The amendments to IFRS 10 and IAS 28 deal with
situations where there is a sale or contribution of
assets between an investor and its associate or joint
venture. Specifically, the amendments state that
gains or losses resulting from the loss of control of
a subsidiary that does not contain a business in a
transaction with an associate or a joint venture that is
accounted for using the equity method, are recognised
in the parent’s profit or loss only to the extent of the
unrelated investors’ interests in that associate or joint
venture. Similarly, gains and losses resulting from
the remeasurement of investments retained in any
former subsidiary (that has become an associate or
a joint venture that is accounted for using the equity
method) to fair value are recognised in the former
parent’s profit or loss only to the extent of the unrelated
investors’ interests in the new associate or joint venture.
Effective date deferred indefinitely. Adoption is
still permitted.
Management anticipates that these new standards,
interpretations and amendments will be adopted in the
QFC Regulatory Authority financial statements as and
when they are applicable and adoption of these new
standards, interpretations and amendments, except
as highlighted in previous paragraphs, may have no
material impact on the financial statements of the QFC
Regulatory Authority in the period of initial application.
QF CR A ANNU AL REP OR T 2020
Effective for annual periods 3.3 Summary of significant accounting policies
beginning on or after
Effective date deferred Revenue recognition Interest income
indefinitely. Adoption is
still permitted. Fee income earned from services that are provided over Interest income is recognised on an accrual basis,
a certain period of time using the effective interest rate method (EIR).
Fee income earned for the provision of services over a
Appropriations from the Government
period of time is accrued over that period. This includes
annual license fees earned from regulated entities.
Appropriations from the Government are recognised
at their fair value when there is a reasonable
Fee income arising on application processing is
assurance that the appropriations will be received
non-refundable and, accordingly, is recognised as
by the QFC Regulatory Authority and are recognised
income when received.
in the statement of comprehensive income over
the period necessary to match them with the costs
Financial penalties that they are intended to compensate. The excess
appropriations provided by the Government are treated
Under the Financial Services Regulations (FSR), the QFC as appropriations received in advance under accounts
Regulatory Authority has the power to impose financial payable and accrual and are carried forward to next year.
penalties where it considers that a Person (as defined in
the FSR) has contravened a relevant requirement set out
in Article 84 (1) of the FSR. The principles to be followed
by the QFC Regulatory Authority in determining the
amount of any financial penalty to be imposed in respect
of such contraventions are set out in the QFC Regulatory
Authority’s “Enforcement Policy Statement 2012”. The
financial penalties are accounted on an accrual basis
on the date stipulated in the order and the income is
reported in the statement of comprehensive income.
T ABLE OF C ONTENT S