Annual Report 2016
163
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
39. CONTINGENT LIABILITIES
– continued
The movement of guarantee liabilities are shown as below:
2016
2015
HK$’000
HK$’000
At beginning of the year
730
660
Recognition of fair values of financial guarantee contracts
at initial recognition
1,526
5,307
Amortisation of financial liabilities
(2,256)
(5,237)
At end of the year
–
730
Financial guarantee contracts are initially recognised at fair value and calculated by using the
default risk method for the banking facilities obtained by the associates. The fair values were based
on certain key assumptions on credit strength of the borrowers and default rate. Subsequent
to initial recognition, the Group measures the financial guarantee contract at the higher of: (i)
the amount of obligation under the contract, as determined in accordance with IAS 37; and (ii)
the amount initially recognised less, when appropriate, cumulative amortisation recognised in
accordance with the revenue recognition policy.
40. OPERATING LEASE COMMITMENTS
THE GROUP
2016
2015
HK$’000
HK$’000
Minimum lease payments paid under operating leases
during the year
10,625
10,874
