Page 98 - 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
i assification and s bse ent eas re ent contin ed
Business model: he usiness model re ects how the Group mana es the assets in order to enerate cash ows. hat is, whether the Group s o ective is solely to collect the contractual cash ows rom the assets or is to collect oth the contractual cash ows and cash ows arisin rom the sale o assets. I neither o these is applica le e. . financial assets are held or tradin purposes , then the financial assets are classified as part o other usiness model and measured at P . actors considered y the Group in determinin the usiness model or a roup o assets include past experience on how the cash ows or these assets were collected, how the asset s per ormance is evaluated and reported to ey mana ement personnel, how ris s are assessed and mana ed and how mana ers are compensated. Securities held or tradin are held principally or the purpose o sellin in the near term or are part o a port olio o financial instruments that are mana ed to ether and or which there is evidence o a recent actual pattern o short term profit ta in . hese securities are classified in the other usiness model and measured at P .
SPPI: here the usiness model is to hold assets to collect contractual cash ows or to collect contractual cash ows and sell, the Group assesses whether the financial instruments cash ows represent solely payments o principal and interest the SPPI test . In ma in this assessment, the Group considers whether the contractual cash ows are consistent with a asic lendin arran ement i.e. interest includes only consideration or the time value o money, credit ris , other asic lendin ris s and a profit mar in that is consistent with a asic lendin arran ement. here the contractual terms introduce exposure to ris or volatility that are inconsistent with a asic lendin arran ement, the related financial asset is classified and measured at air value throu h profit or loss.
he Group reclassifies de t investments when and only when its usiness model or mana in those assets chan es. he reclassification ta es place rom the start o the first reportin period ollowin the chan e. Such chan es are expected to e very in re uent and none occurred durin the period.
EQUITY INSTRUMENTS
E uity instruments are instruments that meet the definition o e uity rom the issuer s perspective that is, instruments that do not contain a contractual o li ation to pay and that evidence a residual interest in the issuer s net assets. Examples o e uity instruments include asic ordinary shares.
he Group su se uently measures all e uity investments at air value throu h profit or loss, except where the Group s mana ement has elected, at initial reco nition, to irrevoca ly desi nate an e uity investment at air value throu h other comprehensive income. he Group s policy is to desi nate e uity investments as OCI when those investments are held or purposes other than to enerate investment returns. hen this election is used, air value ains and losses are reco nised in OCI and are not su se uently reclassified to profit or loss, includin on disposal. Impairment losses and reversal o impairment losses are not reported separately rom other chan es in air value. Dividends, when representin a return on such investments, continue to e reco nised in profit or loss as other income when the Group s ri ht to receive payments is esta lished.
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