IMC ANNUALREPORT 2020 - Flipbook - Page 45
IMC ANNUAL REPORT 2021
FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Lifetime ECL are the ECL that result from all possible default events
over the expected life of the financial instrument. Financial instruments
for which a lifetime ECL is recognized but which are not credit-impaired
are referred to as “stage 2 financial instruments”.
When determining whether the credit risk of a financial asset has
increased significantly since initial recognition and when estimating
ECLs, the Group considers reasonable and supportable information that
is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the
Group’s historical experience and informed credit assessment and
including forward-looking information.
Regardless of the analysis, a significant increase in credit risk is
presumed by the Group if a debtor is more than 30 days past due in
making a contractual payment.
The Group considers a financial asset in default when contractual
payments are 60 days past due.
(f) Income recognition
Measurement of ECLs
Dividends are recognized as revenue when the right to receive payment
is established and are presented in the gross trading result. This applies
even if they are paid out of pre-acquisition profits.
The ECL is measured on either a 12-month or lifetime basis depending
on whether a significant increase in credit risk has occurred since initial
recognition or whether an asset is considered to be credit-impaired.
Expected credit losses are the discounted product of the probability of
default, exposure at default and the loss given default. The Group
calculated the impairment charges based on the IFRS 9 exemption for
financial assets with low credit risk. The calculated impairment charge is
deemed not material.
Credit-impaired financial assets
Consolidated
financial statements
Notes to the consolidated
financial statements
At each reporting date, the Group assesses whether financial assets
carried at amortized cost are credit-impaired. A financial asset is
“credit-impaired“ when one or more events that have a detrimental
impact on the estimated future cash flows of the financial asset have
occurred.
Company
financial statements
Presentation of allowance for ECL in the statement of
financial position
Other information
Loss allowances for financial assets measured at amortized cost are
deducted from the gross carrying amount of the assets.
Independent Auditor’s report
Interest income from financial assets at fair value through profit or loss
is included in trading income. Interest on financial assets at fair value
through other comprehensive income securities, and financial assets at
amortized cost calculated using the effective interest method, is
recognized in the statement of profit or loss as an integral part of
revenue.
The “effective interest rate” is the rate that exactly discounts estimated
future cash payments or receipts through the expected life of the
financial instrument to the gross carrying amount of the financial asset
or liability.
The calculation of the effective interest rate includes transaction costs
and fees and points paid or received that are an integral part of the
effective interest rate. Transaction costs include incremental costs that
are directly attributable to the acquisition or issue of a financial asset or
financial liability.
2.8. PROPERTY AND EQUIPMENT
Property and equipment is stated at historical cost less depreciation.
Historical cost includes expenditure that is directly attributable to the
acquisition of the assets. Subsequent costs are included in the asset’s
carrying amount or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the
item will flow to the Group and the cost of the item can be measured
reliably. All other repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.
Depreciation is calculated using the straight-line method to allocate
their cost net of their residual values, over their estimated useful lives.
Leasehold improvements:useful life with a maximum of the lease
term
Office equipment and other: 4-5 years
Computer equipment:
3 years
45