Financial Statements

Notes to the Financial Statements

(Amount expressed in thousands of Hong Kong dollars, unless otherwise stated.)

1. General

The Office of the Telecommunications Authority (OFTA) Trading Fund was established on 1 June 1995 under the Legislative Council Resolution passed on 10 May 1995 pursuant to sections 3, 4 and 6 of the Trading Funds Ordinance (Cap. 430). By virtue of section 25 of the Communications Authority Ordinance (CAO) (Cap. 616) which came into operation on 1 April 2012, the OFTA Trading Fund was renamed as the Office of the Communications Authority (OFCA) Trading Fund (the Fund) on the same date. The OFCA serves as the executive arm of the Communications Authority (CA), which is a statutory body set up under the CAO to administer and enforce the Broadcasting Ordinance (Cap. 562), the Broadcasting (Miscellaneous Provisions) Ordinance (Cap. 391), the CAO, the Telecommunications Ordinance (Cap. 106) and the Unsolicited Electronic Messages Ordinance (UEMO) (Cap. 593), and to perform any function under or by virtue of any Ordinance. The Fund, which is under the policy portfolio of the Commerce and Economic Development Bureau of the Government of the Hong Kong Special Administrative Region (the Government), supports the principal activities of the CA, as follows:

(a) licensing and regulating telecommunications services and broadcasting services;
(b) managing Hong Kong’s radio frequency spectrum;
(c) providing advisory, planning and support services on telecommunications, broadcasting, anti-spamming matters to the Government;
(d) overseeing technical standards and representing the Government on international affairs;
(e) enforcing the UEMO; and
(f) ensuring the enforcement of fair trading practices and fair competition in relation to telecommunications and broadcasting sectors.

2. Significant accounting policies

(a)　Statement of compliance

These financial statements have been prepared in accordance with accounting principles generally accepted in Hong Kong and all applicable Hong Kong Financial Reporting Standards (HKFRSs), a collective term which includes all applicable individual HKFRSs, Hong Kong Accounting Standards (HKASs) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (HKICPA). A summary of the significant accounting policies adopted by the Fund is set out below.

(b)　Basis of preparation of the financial statements

The measurement basis used in the preparation of the financial statements is historical cost.

The preparation of financial statements in conformity with HKFRSs requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

There are no critical accounting judgements involved in the application of the Fund’s accounting policies. There are also no key assumptions concerning the future, or other key sources of estimation uncertainty at the end of the reporting period, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the next year.

(c)　Fixed assets

The fixed assets appropriated to the Fund on 1 June 1995 were measured initially at deemed cost equal to the value contained in the Resolution of the Legislative Council passed on 10 May 1995. Fixed assets acquired since 1 June 1995 are capitalised at the actual costs of acquisition or installation.

(i)　Property, plant and equipment

The following items of property, plant and equipment are stated at cost less accumulated depreciation and any impairment losses (note 2(d)):

- land classified as held under a finance lease and building held for own use situated thereon; and

- plant and equipment, including telecommunications and broadcasting equipment, computer systems, furniture, fixtures and motor vehicles.

Depreciation is calculated to write off the cost of items of property, plant and equipment, less their estimated residual value, on a straight-line basis over their estimated useful lives as follows:

Gains or losses arising from the disposal of property, plant and equipment are determined as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of comprehensive income on the date of disposal.

(ii)　Intangible assets

Intangible assets include acquired computer software licences and capitalised development costs of computer software programs. Expenditure on development of computer software programs is capitalised if the programs are technically feasible and the Fund has sufficient resources and intention to complete development. The expenditure capitalised includes direct labour and cost of materials. Intangible assets are stated at cost less accumulated amortisation and any impairment losses (note 2(d)).

Amortisation of intangible assets is charged to the statement of comprehensive income on a straight-line basis over the assets’ estimated useful lives of 5 to 12 years.

(d)　 Impairment of fixed assets

The carrying amounts of fixed assets, including property, plant and equipment and intangible assets, are reviewed at the end of each reporting period to identify any indication of impairment.

If any such indication exists, an impairment loss is recognised in the statement of comprehensive income whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount of an asset is the greater of its fair value less costs to sell and value in use.

(e)　Financial assets and financial liabilities

(i)　Initial recognition

The Fund classifies its financial assets and financial liabilities into different categories at inception, depending on the purpose for which the assets were acquired or the liabilities were incurred. The categories are loans and receivables, and other financial liabilities.

Financial assets and financial liabilities are measured initially at fair value, which normally equals to the transaction prices plus transaction costs that are directly attributable to the acquisition of the financial assets or issue of the financial liabilities.

The Fund recognises financial assets and financial liabilities on the date it becomes a party to the contractual provisions of the instrument.

(ii)　Categorisation

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and which the Fund has no intention of trading. This category includes debtors, interest receivable, placement with the Exchange Fund, bank deposits and cash and bank balances.

Loans and receivables are carried at amortised cost using the effective interest method less impairment losses, if any (note 2(e)(iv)).

The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability and of allocating the interest income or interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument or, when appropriate, a shorter period to the net carrying amount of the financial asset or financial liability. When calculating the effective interest rate, the Fund estimates cash flows considering all contractual terms of the financial instruments but does not consider future credit losses. The calculation includes all fees received or paid between parties to the contract that are an integral part of the effective interest rate, transaction costs and all other premiums or discounts.

Other financial liabilities

Other financial liabilities are carried at amortised cost using the effective interest method.

(iii)　Derecognition

A financial asset is derecognised when the contractual rights to receive the cash flows from the financial asset expire, or where the financial asset together with substantially all the risks and rewards of ownership have been transferred.

A financial liability is derecognised when the obligation specified in the contract is discharged or cancelled, or when it expires.

(iv)　Impairment of financial assets

The carrying amounts of loans and receivables are reviewed at the end of each reporting period. An impairment loss is recognised when there is objective evidence that an asset is impaired. The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows discounted at the asset’s original effective interest rate. Any impairment loss is recognised in profit or loss and reflected in an allowance account. If in a subsequent period, the amount of such impairment loss decreases and the decrease can be linked objectively to an event occurring after the impairment loss was recognised, the impairment loss is reversed through the profit or loss. When the Fund considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off.

(f)　Notional profits tax

The Fund has no tax liability under the Inland Revenue Ordinance (Cap. 112). However, prior to 27 December 2017, the Government had required the Fund to pay to the Government an amount in lieu of profits tax (i.e. notional profits tax) calculated on the basis of the provisions of the Inland Revenue Ordinance. The accounting policies adopted by the Fund for notional profits tax were as follows:

(i) Notional profits tax expense for the year comprised current tax and movements in deferred tax assets and liabilities.

(ii) Current tax was the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period, and any adjustment to tax payable in respect of previous years.

(iii) Deferred tax assets and liabilities arose from deductible and taxable temporary differences respectively, being the differences between the carrying amounts of assets and liabilities for financial reporting purposes and their tax bases. Deferred tax assets also arose from unused tax losses and unused tax credits.

All deferred tax liabilities, and all deferred tax assets to the extent that it was probable that future taxable profits would be available against which the assets could be utilised, were recognised.

The amount of deferred tax recognised was measured based on the expected manner of realisation or settlement of the carrying amounts of the assets or liabilities, using tax rates enacted or substantively enacted at the end of the reporting period. Deferred tax assets and liabilities were not discounted.

The carrying amount of a deferred tax asset was reviewed at the end of each reporting period and was reduced to the extent that it was no longer probable that sufficient taxable profit would be available to allow the related tax benefit to be utilised. Any such deduction was reversed to the extent that it became probable that sufficient taxable profit would be available.

However, the Fund is no longer required to pay notional profits tax with effect from 27 December 2017. The balance of notional profits tax payable and the balance of deferred tax liabilities as at 27 December 2017 was derecognised, with the corresponding income recognised in the statement of comprehensive income (see notes 5, 6 and 12).

(g)　Revenue recognition

Licence fees received are credited to deferred income and amortised to profit and loss over the validity period of the licences. Service income is recognised when services have been provided. Interest income is recognised as it accrues using the effective interest method.

Other income is recognised on an accrual basis.

(h)　Employee benefits

The employees of the Fund comprise civil servants and contract staff. Salaries, staff gratuities, and annual leave entitlements are accrued and recognised as expenditure in the year in which the associated services are rendered by the staff. For civil servants, staff on-costs, including pensions and housing benefits provided to the staff by the Government, are charged as expenditure in the year in which the associated services are rendered.

For civil servants employed on pensionable terms, their pension liabilities are discharged by reimbursement of the staff on-cost charged by the Government. For other staff, contributions to the Mandatory Provident Fund Scheme are charged to the statement of comprehensive income as incurred.

(i)　Related parties

The Fund is a separate accounting entity within the Government established under the Trading Funds Ordinance. During the year, the Fund has entered into transactions with various related parties, including government bureaux and departments, trading funds and financially autonomous bodies controlled or significantly influenced by the Government, in the ordinary course of its business.

(j)　Foreign currency translation

Foreign currency transactions during the year are translated into Hong Kong dollars using the spot exchange rates at the transaction dates. Monetary assets and liabilities denominated in currencies other than Hong Kong dollars are translated into Hong Kong dollars using the closing exchange rate at the end of the reporting period. All foreign currency translation differences are recognised in the statement of comprehensive income.

(k)　Cash and cash equivalents

Cash and cash equivalents include cash and bank balances, and other short-term, highly liquid investments that are readily convertible to known amounts of cash and subject to an insignificant risk of changes in value, having been within three months of maturity when placed or acquired.

(l)　Provisions and contingent liabilities

Provisions are recognised for liabilities of uncertain timing or amount when there is a legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made.

Where the time value of money is material, provisions are stated at the present value of the expenditure expected to settle the obligation.

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future events, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.

(m)　Impact of new and revised HKFRSs

The HKICPA has issued certain new and revised HKFRSs that are first effective or available for early adoption for the current accounting period. There have been no changes to the accounting policies applied in these financial statements for the years presented as a result of these developments.

The Fund has not applied any new HKFRSs that are not yet effective for the current accounting period (note 24).

3. Turnover

Description	2018	2017
Telecommunications licence fees
Licences – Private	43,625	42,307
Licences – Public	333,973	330,414
Broadcasting licence fees	41,204	55,344
Services provided to related parties (note 21(a))	28,033	29,069
Miscellaneous revenue	294	308
	447,129	457,442

4. Operating costs

Description	2018	2017
Staff costs	353,908	348,846
Accommodation costs	19,647	19,060
Operating expenses	25,278	24,787
Administrative expenses	19,671	9,405
Consultancy fees	2,842	2,074
Depreciation of property, plant and equipment	12,382	13,272
Amortisation of intangible assets	995	1,217
Audit fees	564	642
	435,287	419,303

5. Other income

Description	2018	2017
Interest income from financial assets not at fair value
Placement with the Exchange Fund	17,645	27,945
Bank deposits	6,532	2,933
Bank balances	1	-
	24,178	30,878
Derecognition of notional profits tax payable and deferred tax liabilities (notes 6 and 12)	4,712	-
Sundry income	206	2,941
	29,096	33,819

6. Notional profits tax

Prior to 27 December 2017, the Government had required all trading funds to pay notional profits tax and dividends to the Government. On 27 December 2017, the Court of Final Appeal handed down its judgement in a judicial review case concerning the Fund. According to the judgement, it was an error of law to construe the Trading Funds Ordinance as permitting the inclusion in budgets of the Fund of projections for notional tax or dividends.

Subsequent to the judgement, the Government made a change in financial arrangement whereby all trading funds are no longer required to pay notional profits tax and dividends to the Government with effect from 27 December 2017. Accordingly, no notional profits tax has been provided by the Fund for the year ended 31 March 2018. The balance of notional profits tax payable as at 27 December 2017 of HK$4,239,000 was derecognised, with corresponding income recognised in the statement of comprehensive income (note 5).

(a)  The notional profits tax charged to the statement of comprehensive income for the year ended 31 March 2017 represented:

(b) The reconciliation between tax expense and accounting profit at applicable tax rate for the year ended 31 March 2017 was as follows:

7. Rate of return on fixed assets

The rate of return on fixed assets was calculated as total comprehensive income divided by average net fixed assets and expressed as a percentage. Total comprehensive income is adjusted by excluding interest income and interest expenses (2017: excluding interest income, interest expense and notional profits tax on interest income from placement with the Exchange Fund). Fixed assets include property, plant and equipment and intangible assets. The Fund is expected to meet a target rate of return on fixed assets of 5.5% per year (2017: 6.7%) as determined by the Financial Secretary.

8. Property, plant and equipment

Description	Land and buildings	Equipment	Computer systems	Furniture and fixtures	Motor vehicles	Total
Cost
At 1 April 2016	220,243	54,789	42,665	48,767	4,921	371,385
Additions	-	1,029	842	-	-	1,871
Disposals	-	(321)	(525)	(63)	-	(909)
At 31 March 2017	220,243	55,497	42,982	48,704	4,921	372,347
At 1 April 2017	220,243	55,497	42,982	48,704	4,921	372,347
Additions	-	3,875	1,088	-	301	5,264
Disposals	-	(777)	(809)	(260)	(167)	(2,013)
At 31 March 2018	220,243	58,595	43,261	48,444	5,055	375,598
Accumulated depreciation
At 1 April 2016	89,071	51,002	34,689	39,258	4,042	218,062
Charge for the year	4,849	969	2,651	4,255	548	13,272
Written back on disposal	-	(321)	(525)	(59)	-	(905)
At 31 March 2017	93,920	51,650	36,815	43,454	4,590	230,429
At 1 April 2017	93,920	51,650	36,815	43,454	4,590	230,429
Charge for the year	4,849	994	2,412	3,824	303	12,382
Written back on disposal	-	(777)	(799)	(253)	(167)	(1,996)
At 31 March 2018	98,769	51,867	38,428	47,025	4,726	240,815
Net book value
At 31 March 2018	121,474	6,728	4,833	1,419	329	134,783
At 31 March 2017	126,323	3,847	6,167	5,250	331	141,918

9. Intangible assets

Computer software licences and system development costs
Description	2018	2017
Cost
At beginning of year	13,817	13,550
Additions	29	267
At end of year	13,846	13,817
Accumulated amortisation
At beginning of year	11,289	10,072
Charge for the year	995	1,217
At end of year	12,284	11,289
Net book value
At end of year	1,562	2,528

10. Placement with the Exchange Fund

Upon maturity of the placement with the Exchange Fund of HK$700,000,000 in May 2017, the Fund renewed the placement with a principal sum of HK$480,000,000 for another six years. The remaining principal sum of HK$220,000,000 and all interest paid were withdrawn.

The balance of the placement amounted to HK$487,880,000 (2017: HK$904,166,000), being the principal sum of HK$480,000,000 (2017: $700,000,000) plus interest paid of HK$7,880,000 (2017: HK$204,166,000) but not yet withdrawn at the end of the reporting period. The term of the placement is six years from the date of placement, during which the amount of principal sum cannot be withdrawn.

Interest on the placement is payable at a fixed rate determined every January. The rate is the average annual investment return of the Exchange Fund’s Investment Portfolio for the past six years or the average annual yield of three-year Government Bond for the previous year subject to a minimum of zero percent, whichever is the higher. The interest rate has been fixed at 4.6% per annum for the year 2018 and at 2.8% per annum for the year 2017.

11. Debtors, deposits and advance payments

Description	2018	2017
Debtors	7,929	23,189
Less: allowance for impairment loss	(5,097)	(5,097)
	2,832	18,092
Deposits and advance payments	613	779
	3,445	18,871

The movement in the allowance for impairment loss during the year is as follows:

Description	2018	2017
At beginning of year	5,097	5,097
Impairment loss recognised	-	-
At end of year	5,097	5,097

Impairment loss was recognised on an amount due from a company in financial difficulties.

12. Deferred tax

With effect from 27 December 2017, the Fund is no longer required to pay notional profits tax to the Government (see note 6). Accordingly, the Fund no longer has deferred tax assets or liabilities. The balance of deferred tax liabilities as at 27 December 2017 of HK$473,000 was derecognised, with corresponding income recognised in the statement of comprehensive income (note 5).

The movements of deferred tax for the year ended 31 March 2017 were as follows:

13. Provision for employee benefits

This represents the estimated liability for employees’ annual leave and obligations on contract-end gratuities payable to contract staff for services rendered up to the end of the reporting period (also see note 2(h)).

14. Deferred income

This represents the balance of licence fee income to be amortised over the remaining validity period of the licences.

15. Trading fund capital

This represents the Government’s investment in the Fund.

16. Development reserve

This is a reserve serving as a regulating mechanism to meet the target return as well as to reduce the need for future fee increases.

Description	2018	2017
Balance at beginning and end of year	690,165	690,165

17. Retained earnings

Description	2018	2017
Balance at beginning of year	-	-
Total comprehensive income for the year	40,938	59,835
Transferred from/(to) proposed dividend (see note 18)	59,835	(59,835)
Balance at end of year	100,773	-

The retained earnings as at 31 March 2018 included the target returns required by the Government totalling HK$17,814,000 for the two years ended 31 March 2018 (see note 7). While the target returns are entrusted to be retained in the Fund, they belong to the Government pursuant to section 6(6)(c) of the Trading Funds Ordinance and are not subject to the Fund’s disposal. The Government will direct the transfer of the sum into general revenue when appropriate.

18. Proposed dividend

The proposed dividend to the Government as at 31 March 2017 was based on the total comprehensive income for the year then ended and the target dividend payout ratio of 100% stated in the annual business plan approved by the Secretary for Financial Services and the Treasury.

With effect from 27 December 2017, the Fund is no longer required to pay dividends to the Government (see note 6). Accordingly, the balance of proposed dividend as at 27 December 2017 of HK$59,835,000 was transferred back to the retained earnings (note 17).

19. Cash and cash equivalents

Description	2018	2017
Cash and bank balances	3,218	3,277
Bank deposits	713,500	225,900
	716,718	229,177
Less: Bank deposits with original maturities over three months	(705,000)	(207,900)
Cash and cash equivalents	11,718	21,277

20. Capital commitments and other commitments

At 31 March 2018, the Fund had capital commitments, so far as not provided for in the financial statements, as stated below:

Description	2018	2017
Authorised and contracted for	372	-
Authorised but not contracted for	113	4,928
	485	4,928

To help resolve billing disputes in deadlock between telecommunications service providers and their customers outside the judicial system, a voluntary Customer Complaint Settlement Scheme (the scheme) was set up in November 2012 by the Communications Association of Hong Kong, the industry association. By a Memorandum of Understanding signed on 30 April 2015, the Fund will provide recurrent funding for the long term operation of the scheme in the amount not exceeding HK$2,000,000 per annum. During the year, the Fund had contributed HK$855,000 to the scheme (2017: HK$1,210,000).

21. Related party transactions

Apart from those separately disclosed in the financial statements, the other material related party transactions for the year are summarised as follows:

(a)  fees income for services provided to related parties included advisory and project services amounting to HK$14,032,000 (2017: HK$15,244,000) and frequency assignment and protection services amounting to HK$14,001,000 (2017: HK$13,825,000);

(b)  expenses for services received from related parties included accommodation, repairs and maintenance, legal advice, central administration and auditing. In total, the Fund incurred HK$25,305,000 on these services (2017: HK$23,130,000); and

(c)  fixed assets acquired from related parties included motor vehicles. The total amount of these fixed assets amounted to HK$301,000 (2017: nil).

Services provided by or to related parties were charged at the rates payable by the general public where such services were also available to members of the public, or on a full cost recovery basis where such services were only available to related parties. Fixed assets supplied by related parties were charged at full cost.

Balances with related parties as at 31 March 2018 are set out in the statement of financial position.

22. Contingent liabilities

As at 31 March 2018, there were several outstanding litigation cases filed with the court by licensees under the Telecommunications Ordinance, claiming for restitution of excessive licence fees paid by them since 1995. The Government intends to vigorously contest these claims and will be responsible for claims for those amounts related to notional profits tax and dividends which have been paid to the Government by the Fund. The Fund considers that, based on the legal advice obtained, it is less likely that these litigation cases will result in a material outflow of economic benefits from the Fund.

23. Financial risk management

(a)　Investment policy

To provide an ancillary source of income, surplus cash is invested in a portfolio of financial instruments. The portfolio includes fixed deposits and placement with the Exchange Fund. It is the Fund’s policy that all investments in financial instruments should be principal-protected.

(b)　Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in currency exchange rates.

The Fund does not have significant exposure to currency risk as substantially all of its financial instruments are denominated in Hong Kong dollars.

(c)　Credit risk

Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss.

The Fund’s credit risk is primarily attributable to debtors, bank deposits, bank balances and placement with the Exchange Fund.

The credit risk of debtors is closely monitored by the Fund. Recoverability of debt items are assessed on an individual basis and impairment losses are recognised when considered necessary.

To minimise credit risks, all bank balances and fixed deposits are placed with licensed banks in Hong Kong.

For the placement with the Exchange Fund, the credit risk is considered to be low.

The maximum exposure to credit risk of the financial assets of the Fund is equal to their carrying amounts at the end of the reporting period.

(d)　Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities.

The Fund manages liquidity risk by forecasting the amount of cash required and monitoring the working capital of the Fund to ensure that all liabilities due and known funding requirements could be met. As the Fund has a strong liquidity position, it has a very low level of liquidity risk.

(e)　Interest rate risk

Interest rate risk refers to the risk of loss arising from changes in market interest rates. This can be further classified into fair value interest rate risk and cash flow interest rate risk.

Fair value interest rate risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market interest rates. Since all of the Fund’s bank deposits bear interest at fixed rates, their fair values will fall when market interest rates increase. However, as they are all stated at amortised cost, changes in market interest rates will not affect their carrying amounts and the Fund’s profit and reserves.

Cash flow interest rate risk is the risk that future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Fund’s exposure to cash flow interest rate risk is small as it has no major floating-rate investments.

(f)　Other financial risk

The Fund is exposed to financial risk arising from changes in the interest rate on the placement with the Exchange Fund which is determined every January (note 10). It was estimated that, as at 31 March 2018, a 50 basis point (2017: 50 basis point) increase / decrease in the interest rates for 2017 and 2018, with all other variables held constant, would increase / decrease the profit for the year and reserves by HK$2,439,000 (2017: HK$3,775,000).

(g)　Fair values

The fair values of financial instruments quoted in active markets are based on their quoted prices at the end of the reporting period. In the absence of such quoted market prices, fair values are estimated using present value or other valuation techniques, using inputs based on market conditions existing at the end of the reporting period.

All financial instruments are stated in the statement of financial position at amounts equal to or not materially different from their fair values.

24. Possible impact of amendments, new standards and interpretations issued but not yet effective for the year ended 31 March 2018

Up to the date of issue of these 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 2018 and which have not been early adopted in these financial statements. These include the following which may be relevant to the Fund: