Page 197 - Full Book_24.4.2021

NOTES TO THE
FINANCIAL STATEMENTS in retrospect

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for the financial year ended 31 december 2020 (continUed)
the Will to Suceed

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2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.5 Financial instruments (continued)
Financial guarantee contracts achieving a leading repute
a financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder
for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified |
terms of a debt instrument.

fair value arising from financial guarantee contracts are classified as deferred income and are amortised to profit or loss
using a straight-line method over the contractual period or, when there is no specified contractual period, recognised
in profit or loss upon discharge of the guarantee. financial guarantee contracts are initially measured at fair value and Paving the Way for a Sustainable future
subsequently measured at the higher of:
• the amount of the allowance for impairment; and
• the premium received on initial recognition less cumulative income recognised in accordance with the principal of
mfrS 15.
Derecognition
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a financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from the
financial asset expire or the financial asset is transferred to another party without retaining control or substantially all risks
and rewards of the asset. on derecognition of a financial asset, the difference between the carrying amount and the sum
of the consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain
or loss that had been recognised in equity is recognised in profit or loss.

a financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is
discharged or cancelled or expires. on derecognition of a financial liability, the difference between the carrying amount adhering to the best Governance Practices
of the financial liability extinguished or transferred to another party and the consideration paid, including any non-cash
assets transferred or liabilities assumed, is recognised in profit or loss.
Offsetting
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financial assets and financial liabilities are offset and the net amount presented in the statement of financial position
when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to
settle them on a net basis or to realise the asset and settle the liability simultaneously.

2.6 property and equipment Laying the Foundation for Financial Growth

Recognition and measurement
items of property and equipment are measured at cost less any accumulated depreciation and any accumulated
impairment losses.
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cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly
attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing
the items and restoring the site on which they are located. the cost of self-constructed assets also includes the cost of
materials and direct labour. for qualifying assets, borrowing costs are capitalised in accordance with the accounting policy
on borrowing cost. additional information & disclosure Summary
Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
the cost of property and equipment recognised as a result of a business combination is based on fair value at acquisition
date. the fair value of property is the estimated amount for which a property could be exchanged between knowledgeable
willing parties in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, |
24 th aGm information
prudently and without compulsion. the fair value of other items of property and equipment is based on the quoted
market prices for similar items when available and replacement cost when appropriate.