Page 100 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
S ar o significant acco nting po icies contin ed Financia assets and iabi ities contin ed
Financia Assets contin ed
iii odification o oans contin ed
hen the Group has trans erred its ri hts to receive cash ows rom an asset or has entered into a pass throu h arran ement, and has neither trans erred nor retained su stantially all o the ris s and rewards o the asset nor trans erred control o the asset, the asset is reco nised to the extent o the Group’s continuin involvement in the asset. In that case, the Group also reco nises an associated lia ility. he trans erred asset and the associated lia ility are measured on a asis that re ects the ri hts and o li ations that the Group has retained. Continuin involvement that ta es the orm o a uarantee over the trans erred asset is measured at the lower o the ori inal carryin amount o the asset and the maximum amount o consideration that the Group could e re uired to repay.
On dereco nition o a financial asset, the difference etween the carryin amount o the asset or the carryin amount allocated to the portion o the asset dereco nised and the sum o i the consideration received includin any new asset o tained less any new lia ility assumed and ii any cumulative ain or loss that had een reco nised in OCI is reco nised in profit or loss. Any interest in trans erred financial assets that uali y or dereco nition that is created or retained y the Group is reco nised as a separate asset or lia ility.
Financia iabi ities
assification
he Group classifies its financial lia ilities, other than financial uarantees and loan commitments, as measured at amortised cost.
Measurement
he amortised cost’ o a financial lia ility is the amount at which the financial lia ility is measured at initial reco nition, minus principal repayments, plus or minus the cumulative amortisation usin the effective interest method o any difference etween the initial amount reco nised and the maturity amount, minus any reduction or impairment.
Derecognition
A financial lia ility is dereco nised when the o li ation under the lia ility is dischar ed or cancelled or expires. here an existin financial lia ility is replaced y another rom the same lender on su stantially different terms, or the terms o an existin lia ility are su stantially modified, such an exchan e or modification is treated as a de reco nition o the ori inal lia ility and the reco nition o a new lia ility, and the difference in the respective carryin amounts is reco nised in profit or loss.
inancial uarantee contracts are contracts that re uire the issuer to ma e specified payments to reim urse the holder or a loss it incurs ecause a specified de tor ails to ma e payments when due, in accordance with the terms o a de t instrument. Such financial uarantees are iven to an s, financial institutions and others on ehal o customers to secure loans, overdra ts and other an in acilities.
inancial uarantee contracts are initially measured at air value and su se uently measured at the hi her of:
• he amount o the loss allowance and
• he premium received on initial reco nition less income reco nised in accordance with the
principles o I RS 15.
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