Page 99 - 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
ii pair ent
he Group assesses on a orward loo in asis the expected credit losses EC associated with its de t instrument assets carried at amortised cost and OCI and with the exposure arisin rom loan commitments and financial uarantee contracts. he Group reco nises a loss allowance or such losses at each reportin date. he measurement o EC re ects
• An un iased and pro a ility wei hted amount that is determined y evaluatin a ran e o possi le outcomes
• he time value o money and
• Reasona le and supporta le in ormation that is availa le without undue cost or effort at the
reportin date a out past events, current conditions and orecasts o uture economic conditions.
iii odification o oans
he Group sometimes rene otiates or otherwise modifies the contractual cash ows o loans to customers. hen this happens, the Group assesses whether or not the new terms are su stantially different to the ori inal terms. he Group does this y considerin , amon others, the ollowin actors
• I the orrower is in financial difficulty, whether the modification merely reduces the contractual cash ows to amounts the orrower is expected to e a le to pay.
• Si nificant extension o the loan term when the orrower is not in financial difficulty.
• Si nificant chan e in the interest rate.
I the terms are su stantially different, the Group dereco nises the ori inal financial asset and reco nises a new asset at air value and recalculates a new effective interest rate or the asset. he date o rene otiation is conse uently considered to e the date o initial reco nition or impairment calculation purposes, includin or the purpose o determinin whether a si nificant increase in credit ris has occurred. owever, the Group also assesses whether the new financial asset reco nised is deemed to e credit impaired at initial reco nition, especially in circumstances where the rene otiation was driven y the de tor ein una le to ma e the ori inally a reed payments. Differences in the carryin amount are also reco nised in profit or loss as a ain or loss on dereco nition.
I the terms are not su stantially different, the rene otiation or modification does not result in dereco nition, and the Group recalculates the ross carryin amount ased on the revised cash ows o the financial asset and reco nises a modification ain or loss in profit or loss. he new ross carryin amount is recalculated y discountin the modified cash ows at the ori inal effective interest rate or credit ad usted effective interest rate or purchased or ori inated credit impaired financial assets .
iv Derecognition other than on a odification
inancial assets, or a portion thereo , are dereco nised when the contractual ri hts to receive the cash ows rom the assets have expired, or when they have een trans erred and either i the Group trans ers su stantially all the ris s and rewards o ownership, or ii the Group neither trans ers nor retains su stantially all the ris s and rewards o ownership and the Group has not retained control.
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