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For the purpose of presentation in the statement of cash flows, cash and cash equivalents
acquired in the ordinary course of business from suppliers. Account and other payables are
include cash on hand, deposits with financial institutions that are short-term, highly liquid
investments that are readily convertible to known amounts of cash and which are subject to an
Account and other payables are obligations to pay for goods and services that have been
is will is
classified as current liabilities if the payment is due within one year or less (or in the normal
operating cycle of the business if longer). If not, they are presented as non-current liabilities.
discounting reasonable revenue there when
of is there period,
effect until recognised
the previous are
unless recognised in income
Summary of significant accounting policies (Continued)
method, Account and other payables are initially recognised at fair value and subsequently stated at not are assurance to the compliance with the conditions attaching to them and the collectability. incurred been compensate and match with the related cost over the periods on a systematic basis. Grants and funds related to acquisition of assets are presented in the statement of financial positio

interest effective funds and already have and donations reasonable certainty that the amounts will be received. Registration and service fees are accounted for on accrual basis. Membership subscriptions are recognised when received. 23

AGENCY FOR VOLUNTEER SERVICE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Cash and cash equivalents insignificant risk of change in value. 2.10 Account and other payables the using cost immaterial, in such case they are stated at cost. 2.11 Revenue recognition subventions Government expenses the Unless the assets. allocations, Other method.

2. 2.9 amortised (a) (b) (c) (d) (e) (f)

other receivables, the Agency applies the simplified approach permitted by HKFRS 9,
which requires expected lifetime losses to be recognised from initial recognition of the
The Agency assesses on a forward-looking basis the expected credit losses associated
directly in profit or loss and presented in other gains/(losses). Impairment losses are
depends on whether there has been a significant increase in credit risk. For account and
with its debt instruments carried at amortised cost. The impairment methodology applied
course of business. If collection of account and other receivables is expected within one year
or less (or in the normal operating cycle of the business if longer), they are classified as current
Account and other receivables are recognised initially at fair value and subsequently measured
Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when there is a legally enforceable right to offset and there is an intention to
Account and other receivables are rights to collect for services performed in the ordinary
effective interest rate method. Any gain or loss arising on derecognition is recognised
cash flows represent solely payments of principal and interest are measured at amortised
Subsequent measurement of debt instruments depends on the Agency’s business model
for managing the asset and the cash flow characteristics of the asset. There is one
Amortised cost: Assets that are held for collection of contractual cash flows where those
At initial recognition, the Agency measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit or loss (FVPL), transaction costs
cost. Interest income from these financial assets is included in finance income using the
at amortised cost using the effective interest method, less provision for impairment.
measurement category into which the Agency classifies its debt instruments.
settle on a net basis or realise the asset and settle the liability simultaneously.
that are directly attributable to the acquisition of the financial asset.
presented as a separate line item in the statement of profit or loss.
Summary of significant accounting policies (Continued)
22
AGENCY FOR VOLUNTEER SERVICE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 Other financial assets (Continued) (c) Measurement Debt instruments (d) Impairment receivables. Offsetting financial instruments Account and other receivables assets. If not, they are presented as non-current assets.

2. 2.6 2.7 2.8