Investor Presentaiton
MORGAN STANLEY BANK ASIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2020
2.
BASIS OF PREPARATION (CONTINUED)
New standards and interpretations not yet adopted
At the date of authorisation of these financial statements, the following amendments to standards relevant
to the Company's operations were issued by the HKICPA but not mandatory for accounting periods
beginning 1 January 2020. The Company does not expect that the adoption of the following standards,
amendments to standards and interpretations will have a material impact on the Company's financial
statements.
Amendments to HKAS 1 'Presentation of Financial Statements': Classification of Liabilities as Current
or Non-current were issued by the HKICPA in August 2020, for retrospective application in accounting
periods beginning on or after 1 January 2023.
Amendments to HKAS 37 'Provisions, Contingent Liabilities and Contingent Assets': Onerous Contracts
- Cost of Fulfilling a Contract were issued by the HKICPA in June 2020, for modified retrospective
application in accounting periods beginning on or after 1 January 2022. Early application is permitted.
As part of the 2018-2020 Annual Improvements Cycle published in June 2020, the HKICPA made an
amendment to HKFRS 9 ‘Financial Instruments', relating to the treatment of fees in the assessment of
whether financial liabilities are modified or exchanged, where such transactions occur on or after 1
January 2022. Early application is permitted.
Basis of measurement
The financial statements of the Company are prepared under the historical cost basis, except for certain
financial instruments that have been measured at fair value as explained in the accounting policies below.
Critical accounting judgements and key sources of estimation uncertainty
In preparing the financial statements, the Company makes judgements and estimates that affect the
application of accounting policies and reported amounts.
Critical accounting judgements are key decisions made by management in the application of the
Company's accounting policies, other than those involving estimations, which have the most significant
effects on the amounts recognised in the financial statements.
Key sources of estimation uncertainty represent assumptions and estimations made by management that
have a significant risk of resulting in a material adjustment to the carrying amount of assets and liabilities
within the next financial year.
The critical judgements in applying the Company's accounting policies are existences of impairment of
financial assets, see note 3(f).
The key sources of estimation uncertainty are the valuation of certain financial instruments. For further
details on the assumptions and estimation uncertainties in determining the fair value of certain assets and
liabilities, see notes 3(d) and 28.
The Company evaluates the critical accounting judgements and key sources of estimation uncertainty on
an ongoing basis and believes that these are reasonable.
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