Page 53 - AOB 2018 (ENG)

Audit
Oversight
Board
ANNUAL
REPORT
2018

13. Authorisation of financial statements

The financial statements for the year ended 31 December 2018 were authorised by the SC for issuance
and signed by the Chairman of the SC and Executive Officer of the AOB on 30 January 2019.

14. Significant changes in accounting policies

During the year, the AOB adopted MFRS 15, Revenue from Contracts with Customers and MFRS 9,
Financial Instruments on their financial statements. The AOB generally applied the requirements of
these accounting standards retrospectively with practical expedients and transitional exemptions as
allowed by the standards. Nevertheless, as permitted by MFRS 9, the AOB has elected not to restate
the comparatives. There are no significant impact from the adoption of MFRS 15.

14.1 Accounting for financial instruments

a. Transition

In respect of the adoption of MFRS 9, the following transitional exemptions as permitted
by the standard have been adopted:

(i) The AOB has not restated comparative information for prior periods with respect
to classification and measurement requirements. Accordingly, the information
presented for 2017 does not generally reflect the requirements of MFRS 9, but
rather those of MFRS 139, Financial Instruments: Recognition and Measurement.

(ii) The following assessments have been made based on the facts and circumstances
that existed at the date of initial application:

– the determination of the business model within which a financial asset is
held.

(iii) Loss allowance for receivables is recognised at an amount equal to lifetime
expected credit losses until the receivable is derecognised.

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