b Financial assets classifi ed as available-for-sale The Group assesses at each balance sheet date whether there is
objective evidence that an available-for-sale fi nancial asset is impaired. In the case of an equity investment, a signifi cant or
prolonged decline in the fair value of the security below its cost is considered in determining whether the asset is impaired.
When there is objective evidence of an impairment of an available-for-sale fi nancial asset, the cumulative loss – measured
as the difference between the acquisition cost and the current fair value, less any impairment loss on that fi nancial asset
previously recognised in the income statement – is reclassifi ed from the revaluation reserve within equity to profi t or loss.
Impairment losses recognised in the income statement on equity investments are not reversed through the income
statement, until the equity investments are disposed of. A subsequent recovery in the value of an available-for-sale debt
instrument whose value has been impaired is reversed through the income statement if there has been an identifi able event
that led to the recovery.
2.9 Repurchase agreements
Repurchase agreements Repos are treated as collateralised borrowing. The amount borrowed is refl ected as a liability
either as “Due to non-bank customers”, “Due to banks” or “Financial liabilities at fair value through profi t or loss”. The
securities sold under repos are treated as pledged assets and remain on the balance sheet at amortised cost or fair value
depending on their classifi cation.
Reverse repurchase agreements Reverse repos are treated as collateralised lending. The amount lent is refl ected as an
asset either as “Loans and advances to customers”, “Due from banks” or “Financial assets at fair value through profi t or loss”.
Amounts paid and received in excess of the amounts borrowed and lent on the repos and reverse repos are amortised as
interest expense and interest income respectively using the effective interest method.
2.10 Goodwill on consolidation Goodwill arising from business combination on or after 1
January 2010 represents the excess of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the net
identifi able assets acquired. Goodwill in a business acquisition prior to 1 January 2010 represents the excess of acquisition
cost over the fair values of the identifi able assets acquired, liabilities and contingent liabilities assumed at the date of
exchange. Goodwill is stated at cost less impairment losses and it is tested at least annually for impairment.
Any defi ciency of the cost of acquisition below the fair values of the identifi able net assets acquired i.e. a discount on
acquisition is recognised directly in the income statement in the period of acquisition.
At the acquisition date, any goodwill acquired is allocated to each of the cash-generating units CGU expected to benefi t
from the combination’s synergies for the purpose of impairment testing.
2.11 Properties and other fi xed assets Properties including investment properties and other fi xed
