Page 201 - 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)
2.10 Lessor accounting
as a lessor, the Group and the company classifies its leases as either operating or finance leases. a lease is classified as achieving a leading repute
a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying asset, and
classified as an operating lease if it does not.
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leases, where the Group and the company does not assume substantially all the risks and rewards of ownership are
classified as operating leases and, the leased assets are not recognised on the statement of financial position.
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.
lease incentives received are recognised in profit or loss as an integral part of the total lease expense, over the term of Paving the Way for a Sustainable future
the lease. contingent rentals are charged to profit or loss in the reporting period in which they are incurred.
When the Group and the company are an intermediate lessor, it assesses the lease classification of a sublease with
reference to the roU asset arising from the head lease, not with reference to the underlying asset. if a head lease is
short-term lease to which the Group and the company apply the exemption described above, then it classifies the
sublease as an operating lease.

2.11 Bills and other receivables 195
bills and other receivables are stated at amortised cost less any allowance for impairment.

2.12 Impairment
Impairment of financial assets
(a) Impairment of financial assets adhering to the best Governance Practices

the Group recognises allowance for impairment or allowance for ecl on financial assets measured at amortised
cost, financial guarantee contracts, financing commitments and debt instruments measured at fvoci, but not to
investments in equity instruments.

at each reporting date, the Group first assess individually whether there is a significant increase in credit risk or |
objective evidence of impairment exists for significant financial assets and collectively for financial assets that are
not individually significant. if it is determined that there is significant increase in credit risk or objective evidence of
impairment exists, i.e. credit impaired, for an individually assessed financial assets measured at amortised cost and
fvoci, a lifetime ecl will be recognised for impairment loss which has been incurred. Laying the Foundation for Financial Growth
the Group has considered the impact of the pandemic and has taken into account the economic and financial
measures announced by the Government in estimating the ecl on the financial assets.

Under collective assessment, the Group apply a three-stage approach to measuring ecl on financial assets
measured at amortised cost and fvoci. financial assets migrate through the following three stages based on the
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change in credit quality since initial recognition:
(i) Stage 1: 12-months ecl (“Stage 1”)
for exposures where there has not been a significant increase in credit risk since initial recognition and that
are not credit impaired upon recognition, the portion of lifetime ecl associated with the probability of additional information & disclosure Summary
default events occurring within the next 12 months is recognised.
(ii) Stage 2: lifetime ecl – not credit impaired (“Stage 2”)
for exposures where there has been a significant increase in credit risk since initial recognition but that are
not credit impaired, a lifetime ecl is recognised. |
24 th aGm information