Urban Renewal Authority 2018-19 Annual Report

126 (expressed in Hong Kong Dollars) NOTES TO THE FINANCIAL STATEMENTS 2. Significant accounting policies (Continued) (b) Relevant standards, amendments to standards and interpretations effective in the current year (Continued) (ii) HKFRS 15, Revenue from contracts with customers (Continued) b. Presentation of contract liabilities Under HKFRS 15, a contract liability, rather than a payable, is recognised when a customer pays non-refundable consideration, or is contractually required to pay non-refundable consideration and the amount is already due, before the Group recognises the related revenue. To reflect these changes in presentation, the Group has made the reclassification adjustments at 1 April 2018 set out in Note 17 as a result of the adoption of HKFRS 15. (c) Standards, amendments to standards and interpretations that are not yet effective for the current year Up to the date of issue of these consolidated financial statements, the HKICPA has issued a number of amendments, new standards and interpretations which are not yet effective for the year ended 31 March 2019 and which have not been adopted in these consolidated financial statements. These include the following which may be relevant to the Group. Effective for accounting periods beginning on or after HKFRS 16, Leases 1 January 2019 The Group is in the process of making an assessment of what the impact of these amendments, new standards and interpretations is expected to be in the period of initial application. So far the Group has identified some aspects of HKFRS 16 which may have an impact on the consolidated financial statements and further details of the expected impacts are discussed below. While the assessment has been substantially completed, the actual impacts upon the initial adoption of the standards may differ as the assessment completed to date is based on the information currently available to the Group, and further impacts may be identified before the standards are initially applied in the Group’s financial statements for the year ending 31 March 2020. The Group may also change its accounting policy elections, including the transition options, until the standards are initially applied in the financial statements. HKFRS 16, Leases As disclosed in Note 2(j), currently the Group classifies leases into finance leases and operating leases and accounts for the lease arrangements differently, depending on the classification of the lease. The Group enters into some leases as the lessor and others as the lessee. Once HKFRS 16 is adopted, the Group will no longer distinguish between finance leases and operating leases when it is the lessee under the lease. Instead, the Group will account for all leases of more than 12 months in a similar way to current finance lease accounting.