Page 101 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
S ar o significant acco nting po icies contin ed Financia assets and iabi ities contin ed
Financia g arantee contracts and oan co it ents
oan commitments provided y the Group are measured as the amount o the loss allowance. he Group has not provided any commitment to provide loans at a elow mar et interest rate, or that can e settled net in cash or y deliverin or issuin another financial instrument.
or loan commitments and financial uarantee contracts, the loss allowance is reco nised as a provision. owever, or contracts that include oth a loan and an undrawn commitment and the Group cannot separately identi y the expected credit losses on the undrawn commitment component rom those on the loan component, the expected credit losses on the undrawn commitment are reco nised to ether with the loss allowance or the loan. o the extent that the com ined expected credit losses exceed the ross carryin amount o the loan, the expected credit losses are reco nised as a provision.
Deter ination o air va e
or financial instruments traded in active mar ets, the determination o air values o financial assets and financial lia ilities is ased on uoted mar et prices or dealer price uotations. his includes listed e uity securities uoted on stoc exchan es.
A financial instrument is re arded as uoted in an active mar et i uoted prices are readily and re ularly availa le rom an exchan e, dealer, ro er, industry an , pricin service or re ulatory a ency, and those prices represent actual and re ularly occurrin mar et transactions on an arm’s len th asis. I the a ove criteria are not met, the mar et is re arded as ein inactive. Indicators that a mar et is inactive are when there is a wide id offer spread or si nificant increase in the id offer spread or there are ew recent transactions.
or all other financial instruments, air value is determined usin valuation techni ues. In these techni ues, air values are estimated rom o serva le data in respect o similar financial instruments, usin models to estimate the present value o expected uture cash ows or other valuation techni ues, usin inputs or example, yield curve, orei n exchan e rates, and counterparty spreads existin at the reportin dates.
Offsetting financia instr ents
ettin , where financial assets and lia ilities are offset and the net amount reported in the statement o financial position, occurs i , and only i , there is a le ally en orcea le ri ht to set off the reco nised amounts and there is an intention to settle on a net asis, or to realise an asset and settle the lia ility simultaneously. In many cases, even thou h master nettin a reements are in place, the lac o an intention to settle on a net asis results in the related assets and lia ilities ein presented ross in the statement o financial position.
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