IMC ANNUALREPORT 2020 - Flipbook - Page 46
IMC ANNUAL REPORT 2021
FINANCIAL STATEMENTS NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2.9. INTANGIBLE ASSETS
Intangible assets are measured on initial recognition at cost. Following
initial recognition, intangible assets are carried at cost less accumulated
amortization and accumulated impairment losses, if any.
Gains or losses arising from derecognition of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit or loss when the asset is derecognized.
Goodwill on acquisitions represents the excess of the cost of the
acquisition over the Group’s share over the fair value of the identifiable
net assets acquired. Goodwill is not amortized and is tested annually for
impairment and whenever there is indication that the goodwill may be
impaired. An impairment loss on goodwill is recognized as an expense
and is not reversed in a subsequent period.
The intangible assets at 31 December 2021 consist of goodwill paid in
relation to the acquisition of FRIJT Trading B.V.
2.10. IMPAIRMENT OF ASSETS
Consolidated
financial statements
Notes to the consolidated
financial statements
Company
financial statements
Other information
Independent Auditor’s report
Intangible assets that have an indefinite useful life are not subject to
amortization and are tested annually for impairment, or more
frequently if events or changes in circumstances indicate that they
might be impaired. Other assets are tested for impairment whenever
events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognized for the
amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value
less costs of disposal and value in use. For the purposes of assessing
impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash inflows which are largely independent of the
cash inflows from other assets or groups of assets (cash-generating
units).
2.11. PROVISIONS
Provisions are recognized when the Group has a present legal or
constructive obligation as a result of past events; it is probable that an
outflow of resources will be required to settle the obligation; and if a
reliable estimate of the amount can be made. Provisions are not recognized
for future operating losses. Where there are a number of similar
obligations, the likelihood that an outflow will be required in settlement is
determined by considering the class of obligations as a whole. A provision is
recognized even if the likelihood of an outflow with respect to any one item
included in the same class of obligations may be small.
Provisions are measured at the present value of management’s best
estimate of the expenditure required to settle the present obligation at
the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments
of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognized as
interest expense.
2.12. NET TRADING INCOME
Net trading income consists of trading income minus direct trading
expenses. Trading income is composed of fair value changes of the
trading assets and liabilities a well as interest income and expense and
dividends (received and paid), and exchange rate gains and losses on
the trading positions. Direct trading expenses are mainly exchange and
clearing expenses and broker fees.
The fair value changes of the trading assets and liabilities are comprised
of the realized profit and losses on the Group’s trading activities in
shares, bonds, derivatives and futures, and the unrealized results which
are generated through the fair value movements of trading positions.
2.13. LEASES
At inception of a contract, the Group assesses whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the contract
conveys the right to control the use of an identified asset for a period of
time in exchange for a consideration. At commencement or on
modification of a contract that contains a lease component, the Group
allocates consideration in the contract to each lease component on the
basis of its relative standalone price.
The Group recognizes a right-of-use asset and a lease liability at the
lease commencement date. The right-of-use asset is initially measured
46