Page 93 - ACCESS ANNUAL REPORT 2019

NOTES (continued)
S ar o significant acco nting po icies contin ed onso idation contin ed
S bsidiaries contin ed
Inter company transactions, alances and unrealised ains on transactions etween roup companies are eliminated. nrealised losses are also eliminated. hen necessary, amounts reported y su sidiaries have een ad usted to con orm to the roup’s accountin policies.
hanges in ownership interests in s bsidiaries witho t change o contro
ransactions with non controllin interests that do not result in loss o control are accounted or as e uity transactions that is, as transactions with the owners in their capacity as owners. he difference etween air value o any consideration paid and the relevant share ac uired o the carryin value o net assets o the su sidiary is recorded in e uity. Gains or losses on disposals to non controllin interests are also recorded in e uity.
Disposa o s bsidiaries
hen the roup ceases to have control any retained interest in the entity is remeasured to its air value at the date when control is lost, with the chan e in carryin amount reco nised in profit or loss. he air value is the initial carryin amount or the purposes o su se uently accountin or the retained interest as an associate, oint venture or financial asset. In addition, any amounts previously reco nised in other comprehensive income in respect o that entity are accounted or as i the roup had directly disposed o the related assets or lia ilities. his may mean that amounts previously reco nised in other comprehensive income are reclassified to profit or loss.
nterest inco e and e pense
Interest income and expense are reco nised in profit or loss usin the effective interest method. he effective interest method is the rate that exactly discounts estimated uture cash payments or receipts throu h the expected li e o the financial instrument or, when appropriate, a shorter period to the net carryin amount o the financial asset or financial lia ility.
hen calculatin the effective interest rate, the Ban estimates cash ows considerin all contractual terms o the financial instrument, includin prepayment options, ut does not consider uture credit losses. he calculation includes all transaction costs and ees paid or received that are an inte ral part o the effective interest rate.
Once a financial asset or a roup o similar financial assets has een written down as a result o an impairment loss, interest income is reco nised usin the rate o interest used to discount uture cash ows or the purpose o measurin the impairment loss.
2.6 Fees and commission
ees and commission income are reco nised on an accrual asis when the related services are per ormed. oan commitment ees or loans that are not li ely to e drawn down are de erred, to ether with related direct costs and reco nised on a strai ht line asis over the commitment period. ees and commission expenses, which relate mainly to transaction and service ees, are expensed as the related services are received.
2.7 Net trading income
et tradin income comprises ains less losses relatin to tradin assets and lia ilities, includin realised and unrealised air value chan es, interest and orei n exchan e differences.
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