Page 135 - Annual Report 2020

/ 130 QF CR A ANNU AL REP OR T 2020

20. Impact of Covid 19

The outbreak of the novel Coronavirus continues to disrupt

business operations and economic activity globally.

The extent and duration of the impacts depend highly
on future events that cannot be accurately predicted.

As the situation is rapidly evolving, the impact on the

Regulatory Authority’s activities and operations is

uncertain and accordingly, management estimates in
the measurement of amounts reported in these financial

statements remain sensitive to market fluctuations.

Expected Credit Losses (“ECL”) and impairment of
financial assets: The uncertainties caused by COVID-19

have required the Regulatory Authority to reassess the

inputs and assumptions used for the determination of

expected credit losses (“ECLs”) as at December 31, 2020.

Going concern: The Regulatory Authority has performed

an assessment of whether going concern assumption is

appropriate in the light of current economic conditions
and all available information about future risks and

uncertainties. The projections have been prepared

covering the Regulatory Authority’s future performance,

capital and liquidity. The Regulatory Authority will
continue to closely monitor the impact of COVID-19

as the situation progresses to manage the potential

business disruption the COVID-19 outbreak may have

on its operations and financial performance in 2021.

T ABLE OF C ONTENT S