Investor Presentaiton
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principal amount outstanding. These financial assets are
amortized using the effective interest rate (EIR) method,
less impairment. Amortized cost is calculated by taking
into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR.
The EIR amortization is included in finance income
in the consolidated statement of profit and loss. The
losses arising from impairment are recognized in the
consolidated statement of profit and loss in finance costs.
Financial assets at fair value through OCI (FVTOCI)
Financial assets are mandatorily measured at fair value
through other comprehensive income if the financial
asset is held within a business model whose objective is
achieved by both collecting contractual cash flows and
selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows
that are solely payments of principal and interest on the
principal amount outstanding.
At initial recognition, an irrevocable election is made
(on an instrument-by-instrument basis) to designate
investments in equity instruments other than held for
trading purpose at FVTOCI. Fair value changes relating
to financial assets measured at FVTOCI are recognized
in the other comprehensive income (OCI). However, the
Group recognizes interest income, impairment losses and
reversals and foreign exchange gain or loss in the income
statement. On derecognition of the financial asset other
than equity instruments, cumulative gain or loss previously
recognised in OCI is reclassified to Profit or Loss.
Financial assets at fair value through profit or loss
(FVTPL)
Any financial asset that does not meet the criteria for
classification as at amortized cost or as financial assets
at fair value through other comprehensive income, is
classified as financial assets at fair value through profit or
loss. Further, financial assets at fair value through profit
or loss also include financial assets held for trading and
financial assets designated upon initial recognition at fair
value through profit or loss. Financial assets are classified
as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Financial assets
at fair value through profit or loss are fair valued at each
reporting date with all the changes recognized in the
Consolidated statement of profit and loss.
Derecognition
The Group derecognises a financial asset only when the
contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially
all the risks and rewards of ownership of the asset to
another entity. If the Group neither transfers nor retains
substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Group
recognizes its retained interest in the asset and an
associated liability for amounts it may have to pay.
Impairment of financial assets
The Group assesses impairment based on expected
credit loss (ECL) model on the following:
Financial assets that are measured at amortised
cost.
Financial assets (excluding equity instruments)
measured at fair value through other comprehensive
income (FVTOCI).
ECL is measured through a loss allowance on
a following basis after considering the value of
recoverable security:-
The 12 month expected credit losses (expected
credit losses that result from those default events
on the financial instruments that are possible
within 12 months after the reporting date)
Full life time expected credit losses (expected
credit losses that result from all possible default
events over the life of financial instruments)View entire presentation