HKSI Institute AR2023

HKSI Institute Annual Report 2023 62 NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (Expressed in Hong Kong dollars unless otherwise indicated) 2 SIGNIFICANT ACCOUNTING POLICIES (continued) (h) Financial assets at amortised cost Deposits, prepayments and other receivables, cash and bank balances and time deposits are stated at amortised cost using the effective interest method, less allowance for impairment losses, if any, except where the effect of discounting would be immaterial. In such cases, the financial assets at amortised cost are stated at cost less allowance for impairment losses. The loss allowance is measured at an amount equal to lifetime expected credit loss (“ECL”), which are those losses that are expected to occur over the expected life of the financial assets. The loss allowance is estimated using appropriate proxies, adjusted for factors that are specific to the debtors and an assessment of both the current and forecast general economic conditions at the reporting date. ECL is remeasured at each reporting date with any changes recognised as an impairment gain or loss in profit or loss. The Group recognises an impairment gain or loss with a corresponding adjustment to the carrying amount of the financial assets through a loss allowance account. The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Group determines that the debtor/ counterparties does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. (i) Intangible assets (other than goodwill) The Group recognised the development and enhancement of the Advanced Learning Platform (“ALP”) Project which is fully funded by a grant from the SFC as intangible assets. Grants that compensate the group for the cost of intangible assets are deducted from the carrying amount of intangible assets (see note 2(p)). (j) Impairment of non-financial assets Internal and external sources of information are reviewed at the end of each reporting period to identify indications that the following assets may be impaired or an impairment loss previously recognized no longer exists and may have decreased: – intangible assets; and – investment in a subsidiary. If any such indication exists, the asset’s recoverable amount is estimated. In addition, intangible assets that are not yet available for use and intangible assets that have indefinite useful lives, the recoverable amount is estimated annually whether or not there is any indication of impairment.