Page 177 - CJ 2019 INTEGRATED REPORT

175
1 NOTES TO THE FINANCIAL
STATEMENTS 31 DECEMBER 2019 (CONTINUED)
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
• Financial assets at fair value through other comprehensive income (FVOCI)
Financial assets assets assets that that are are are held for for collection of of contractual cash cash flows flows and and and for for selling the the assets assets assets where the the assets’ cash cash flows flows represent solely payments of of principal and and and interest and and and that that are are are are not designated at at at at at FVPL are are are are measured at at at at at fair value through through other comprehensive income (FVOCI)
Movements in in in in in in in in the the the carrying amount are are are taken through through OCI OCI except for for the the the the the the recognition of o impairment gains gains or or or or or losses losses interest revenue and and foreign exchange gains gains and and losses losses on on the the the the instrument’s amortised cost which are recognised recognised recognised in in in in in fin in in in profit profit or or or or or or or loss loss loss loss loss When the the the the financial asset is is is is is is derecognised the the the the cumulative gain or or or or loss loss loss previously recognised recognised recognised in in fin in in in fin in in in in in OCI is is is is is is is reclassified from from equity to profit profit or or or or loss loss loss Interest Interest income income from from these financial assets is is is included in in fin in in in in in ‘Interest income’ using the the effective interest rate method Financial assets – classification and measurement
The The Group classifies its financial assets fin in in in in the the the the following categories: at at at at at amortised cost at at at at at fair fair value value through through profit or or or loss and and and at at at at at fair fair value value through through other comprehensive income The The classification depends on on on on the the the the the the the business business model model and and and whether the the the the the the the the Group’s business business model model is to hold these for for collection of of contractual cash cash flows flows and and and and the the the the the the the the cash cash flows flows represent solely payments of of of principal principal and and interest on on on on on on the the the the the principal principal amount or or or or for for sale or or or or both The Group Group determines the the the the the classification of of its financial assets on on on initial recognition Subsequent measurement
Financial assets held at amortised cost Financial assets assets assets held at at at at at amortised cost are are are non-derivative financial assets assets assets with fixed or or or determinable payments that are are are are not quoted in fin in in in in in an an an an an an active market They are are are are included in fin in in in in in current current assets assets assets assets except for maturities greater than 12 months after the the the end of of of the the the reporting period These are are are classified as as as as as non-current assets assets The The The Group’s loans and and receivables receivables receivables comprise ‘trade receivables’ in in fin the the the the statement of of of of financial position Subsequent measurement
of of of of loan loan and and receivables receivables receivables is is is is at at at at at amortised amortised cost cost given that that these are are are assets that that are are are held for collection of of of of contractual cash cash flows flows where those cash cash flows flows represent solely payments of of principal and interest interest are are are measured at at at at at amortised amortised cost cost Interest income income from these financial assets is is is is is included in in in fin in in fin in in in in in in in in in finance income income income using the the the the effective interest interest rate method Any gain gain or or loss arising on on derecognition is is is is recognised directly fin in in fin in in in in in in in in in in in in the the the the the the statement of comprehensive income income and and presented presented fin in in fin in in in in in in in in in in in in other gains/ (losses) together with foreign exchange gains gains and and losses losses losses Impairment losses losses losses are presented presented as separate line item in in in in in in in in the the the the statement of comprehensive income Equity instruments
The The Group subsequently measures all equity equity investments investments at at fair fair value value The The Directors have elected to to present fair fair value value gains gains and and and losses losses on on on equity equity investments investments in in in in in in in in statement statement of of of other comprehensive comprehensive income income and and and there is no subsequent subsequent reclassification of of of of of fair value gains gains and and and losses losses to to the the the the the the statement statement statement of of of of of comprehensive comprehensive comprehensive income income income following the the the the the the derecognition of of of of the the the the the the investment investment Dividends from such investments are to to to be recognised in in in in in in in in the the the the the the statement statement of of of of comprehensive comprehensive income income income as other income when the the the Group’s right to to receive payments is is is established Changes in fin in in in in in the the the fair value of of of financial assets at at FVPL are recognised in fin in in in in in other gains/losses in fin in in in in in the the the statement of of of comprehensive comprehensive income income as as as applicable Impairment losses losses losses and reversal of of of impairment losses losses losses on equity investments measured at at fair fair value value through other other comprehensive comprehensive income income (FVOCI)
are not reported separately from other other changes in fair value Impairment of financial assets The Group applies the IFRS 9 simplified approach to measuring ECL which uses a a a a a a a a a lifetime expected loss allowance for trade receivables Trade receivables have been grouped based based on on on shared credit credit characteristics and and the the the the days past due The expected loss loss rates rates are are are based based on on on on the the the the payment profiles o of sales over the the the the last 3 years and and and the the the the corresponding historical historical credit credit losses experienced within this period The The historical historical loss loss rates rates are are adjusted to to to to to to reflect current and and forward-looking information on on on macro-economic factors affecting the the the the the ability of the the the the the customers to to to to to to to to settle the the the the the receivables The The Group has identified Gross Domestic Product (GDP) to to to to to to be the the the the the most relevant factor factor and accordingly adjusts the the the the the historical loss rates A financial financial financial asset asset asset is is credit-impaired when one or or more events that that that have have a a a a a a a a a a a a a a a a a a a a a a a detrimental impact on on the estimated future cash flows of that that that financial financial financial asset asset asset have have occurred Evidence that that that a a a a a a a a a a a a a a a a a a a a a a a a a a financial financial financial asset asset asset is is credit credit impaired impaired include observable data about the following events:
significant financial difficulty of the the issuer or or the the borrower a a a a a a a breach of contract such as as a a a a a a a default or past due event the the the the the the lender(s) lender(s) of the the the the the the borrower borrower borrower for economic or or or or or contractual reasons relating to to the the the the the the borrower’s financial difficulty having granted to to the the the the the the borrower borrower borrower a a a a a a a concession(s) that the the the the the the lender(s) lender(s) would not otherwise consider it is is becoming probable that the the borrower will enter bankruptcy or or or other financial reorganisation the disappearance of of an an an an active market for that financial financial asset because of of financial financial difficulties or or the the purchase or or origination of a a a a a a a a a financial asset at at at a a a a a a a a a deep discount that reflects the the incurred credit losses INTEGRATED REPORT 2019 a b c d e f