Page 128 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
A a o nts are in tho sands o hana edis n ess otherwise stated
ritica esti ates and dge ents contin ed
d Deter ining i pair ent o propert and e ip ent, and intangib e assets
ana ement is re uired to ma e ud ements concernin the cause, timin and amount o impairment. In the identification o impairment indicators, mana ement considers the impact o chan es in current competitive conditions, cost o capital, availa ility o undin , technolo ical o solescence, discontinuance o services and other circumstances that could indicate that impairment exists. he Ban applies the impairment assessment to its separate cash eneratin units. his re uires mana ement to ma e si nificant ud ements and estimates concernin the existence o impairment indicators, separate cash eneratin units, remainin use ul lives o assets, pro ected cash ows and net realisa le values. ana ement’s ud ement is also re uired when assessin whether a previously reco nised impairment loss should e reversed.
Determining the lease term of contracts with renewal and termination options – Group as lessee
he Group determines the lease term as the non cancella le term o the lease, to ether with any periods covered y an option to extend the lease i it is reasona ly certain to e exercised, or any periods covered y an option to terminate the lease, i it is reasona ly certain not to e exercised.
he Group has several lease contracts that include extension and termination options. he Group applies ud ement in evaluatin whether it is reasona ly certain whether or not to exercise the option to renew or terminate the lease. hat is, it considers all relevant actors that create an economic incentive or it to exercise either the renewal or termination. A ter the commencement date, the Group reassesses the lease term i there is a si nificant event or chan e in circumstances that is within its control and affects its a ility to exercise or not to exercise the option to renew or to terminate e. ., construction o si nificant leasehold improvements or si nificant customisation to the leased asset .
he Group included the renewal period as part o the lease term or leases o plant and machinery with shorter non cancella le period i.e., three to five years . he Group typically exercises its option to renew or these leases ecause there will e a si nificant ne ative effect on services i a replacement asset is not readily availa le. he renewal periods or leases with lon er non cancella le periods i.e., 10 to 15 years are not included as part o the lease term as these are not reasona ly certain to e exercised. urthermore, the periods covered y termination options are included as part o the lease term only when they are reasona ly certain not to e exercised.
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Other acco nting dge ents, esti ates and ass ptions app ied as at Dece ber
a A owances or credit osses
Assets accounted or at amortised cost were evaluated or impairment on a asis descri ed in accountin policy.
he specific component o the total allowances or impairment applied to claims evaluated individually or impairment and was ased upon mana ement’s est estimate o the present value o the cash ows that were expected to e received. In estimatin these cash ows, mana ement made ud ements a out counterparty’s financial situation and the net realisa le value o any underlyin collateral. Each impaired asset was assessed on its merits, and the wor out strate y and estimate o cash ows considered recovera le were independently approved y the Criticised Assets Committee CAC .
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