NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2023 159 OUR SUSTAINABILITY APPROACH HOW WE ARE GOVERNED FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION ADDITIONAL INFORMATION 3. ACCOUNTING POLICIES (CONT’D.) 3.4 Material accounting policy information (cont’d.) (e) Goodwill and intangible assets (cont’d.) (ii) Other intangible assets (cont’d.) Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in the useful life from indefinite to finite is made on a prospective basis. 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 recognised in profit or loss when the asset is derecognised. (f) Financial instruments – initial recognition Financial assets and liabilities, with the exception of loans, advances and financing to customers and balances due to clients, are initially recognised on the trade date, i.e., the date that the Group and the Bank become a party to the contractual provisions of the instrument. This includes regular way trades: purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the market place. Loans, advances and financing to customers are recognised when funds are transferred to the customers’ accounts. The Bank recognises balances due to clients when settlement has yet to be made on outstanding contracts which have been entered into on behalf of the clients. (i) Initial recognition and subsequent measurement The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments, as described in Note 3.4(g)(i). Financial instruments are initially measured at their fair value (as defined in Note 3.4(j)), except in the case of financial assets and financial liabilities recorded at fair value through profit or loss ("FVTPL"), transaction costs are added to, or subtracted from this amount. Trade receivables are measured at the transaction price. When the fair value of financial instruments at initial recognition differs from the transaction price, the Group and the Bank account for the Day 1 profit or loss. (ii) Measurement categories of financial assets and liabilities The Group and the Bank classify all of their financial assets based on the business model for managing the assets and the asset’s contractual terms, measured at either: (a) Amortised Cost, as explained in Note 3.4(g)(i); (b) FVOCI, as explained in Notes 3.4(g)(v) and 3.4(g)(vi); or (c) FVTPL, as explained in Notes 3.4(g)(iv) and 3.4 (g)(viii).
RkJQdWJsaXNoZXIy NDgzMzc=