SEO Version
SABANA
82
The Group holds derivative fnancial instruments to economically hedge its proft rate risk ex
Derivatives are recognised initially at fair value; attributable transaction costs are recognised
Total Return as incurred. Subsequent to initial recognition, derivatives are measured at fair
therein are accounted for as described below.
Other non-trading derivatives
Changes in the fair value of the derivative hedging instrument that do not qualify for he
recognised immediately in the Statement of Total Return.
(f)
Impairment
(i)
Non-derivative financial assets
A fnancial asset not carried at fair value through proft or loss is assessed at the end of ea
to determine whether there is objective evidence that it is impaired. A fnancial asset is i
evidence indicates that a loss event has occurred after the initial recognition of the asset, an
has a negative effect on the estimated future cash fows of that asset that can be estimated
Objective evidence that fnancial assets are impaired can include default or delinquency by a t
of an amount due to the Group on terms that the Group would not consider otherwise, indic
or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or is
economic conditions that correlate with defaults or the disappearance of an active mark
addition, for an investment in an equity security, a signifcant or prolonged decline in its fair
is objective evidence of impairment.
Loans and receivables
The Group considers evidence of impairment for loans and receivables at a specifc asset
All individually signifcant loans and receivables are assessed for specifc impairment.
An impairment loss in respect of a fnancial asset measured at amortised cost is calculate
between its carrying amount and the present value of the estimated future cash fows, disco
original effective proft rate. Losses are recognised in the Statement of Total Return and refec
account against loans and receivables. Proft income on the impaired asset continues to be
a subsequent event (e.g. repayment by a tenant) causes the amount of impairment los
decrease in impairment loss is reversed through the Statement of Total Return.
(ii)
Non-financial assets
The carrying amounts of the Group’s non-fnancial assets, other than investment properti
each reporting date to determine whether there is any indication of impairment. If any suc
then the asset’s recoverable amount is estimated. An impairment loss is recognised if the ca
asset or its related cash-generating unit (CGU) exceeds its estimated recoverable amount.
Sabana AR 2011 Financial V9.indd 82
Powered by FlippingBook Publisher