Financial liabilities The Group classifi es its fi nancial liabilities in the following

2.12 Impairment of non-fi nancial assets Goodwill

An impairment loss is recognised when the carrying amount of a CGU, including the goodwill, exceeds the recoverable amount of the CGU. Recoverable amount of a CGU is the higher of the CGU’s fair value less cost to sell and its value-in-use. An impairment loss on goodwill recognised in the income statement cannot be reversed in subsequent periods. Properties and other fi xed assets, and investment in subsidiaries, associates and joint ventures Properties including investment properties and other fi xed assets, and investment in subsidiaries, associates and joint ventures are reviewed for impairment at each balance sheet date to determine if events or changes in circumstances indicate that the carrying value may not be recoverable. If such an indication exists, the carrying value of the asset is written down to its recoverable amount being the higher of the fair value less cost to sell and the value-in-use. The impairment loss is charged to the income statement.

2.13 Financial liabilities The Group classifi es its fi nancial liabilities in the following

categories: a fi nancial liabilities at fair value through profi t or loss; and b fi nancial liabilities at amortised cost. Financial liabilities are classifi ed as fi nancial liabilities at fair value through profi t or loss if they are incurred for the purpose of short-term repurchasing held for trading or designated by management on initial recognition designated under the fair value option. Derivatives are classifi ed as held for trading unless they are designated as hedging instruments. The specifi c Group accounting policy on derivatives is detailed in Note 2.15. Financial liabilities designated under the fair value option meet at least one of the following criteria upon designation: • it eliminates or signifi cantly reduces measurement or recognition inconsistencies that would otherwise arise from measuring fi nancial liabilities, or recognising gains or losses on them, using different bases; or • the fi nancial liability contains an embedded derivative that would otherwise need to be separately recorded. Financial liabilities are initially recognised at fair value, net of transaction costs incurred, except for fi nancial liabilities at fair value through profi t or loss, for which transaction costs are expensed off immediately. Financial liabilities classifi ed as fair value through profi t or loss are subsequently carried at fair value. Realised or unrealised gains or losses on fi nancial liabilities held for trading and fi nancial liabilities designated under the fair value option, except interest expense, are taken to “Net trading income” and “Net income from fi nancial instruments designated at fair value” respectively in the income statement in the period they arise. All other fi nancial liabilities are subsequently carried at amortised cost using the effective interest method. The fair value of fi nancial liabilities is estimated by discounting the future contractual cash fl ows at the current market interest rate that is available to the Group for similar fi nancial instruments. Where applicable, a valuation reserve or pricing adjustment is applied to arrive at the fair value. A fi nancial liability is removed or derecognised from the balance sheet when the obligation specifi ed in the contract is discharged, cancelled or expired.

2.14 Provisions and other liabilities Provisions are recognised when the Group has a present legal