Page 246 - E-BOOK

- Classification and presentation of loans purchased of receivables that are held to
generate contractual cash flows and receipts of principal and related interest as loans
purchased of receivables and accrued interest receivables and subsequently measured

at amortised cost.

- Classification and presentation of installment sale receivables that are held to generate
contractual cash flows and receipts of principal and related interest as installment sale

receivables and subsequently measured at amortised cost.

Classification and measurement of financial liabilities

The adoption of these standards does not have an impact on the Company’s classification of
financial liabilities. The Company continues to classify its financial liabilities and measured at

amortised cost.

Impairment of financial assets

This TFRS requires entities to estimate the impairment for expected credit loss in place of the
incurred loss recognise under the previous accounting policy. It requires that impairment loss
on financial assets be recognised using the Expected Credit Loss Model, with a management
Annual Report 2020 overlay for the factors which are not captured by the model and designed to be recognise

allowance for expected credit loss of all financial assets-debt instruments that are not

to have occurred prior to the recognition. The Company applies the purchased or originated
244 measured at fair value through profit or loss, and it is not necessary for a credit-impaired event
credit-impaired approach (POCI) to loans purchased of receivables and a part of advance for
expenses on asset acquisition that transfer to loans purchased of receivables. A general
approach is applied to calculate expected credit losses on installment sale receivables and

other financial assets.

Practices during transitional period

The Company adopted these financial reporting standards which the cumulative effect is
recognised as an adjustment to the retained earnings or other components of equity as at 1

January 2020, and the comparation information was not restated, as a result, the presentation
of 2019 figures cannot be compared with the financial statements for the year 2020.

The cumulative effects of changes in accounting policies is described in Note 7.

TFRS 16 Leases

TFRS 16 supersedes TAS 17 Leases together with related interpretations. The standard sets

out the principles for the recognition, measurement, presentation and disclosure of leases,
and requires a lessee to recognise assets and liabilities for all leases with a term of more than
12 months, unless the underlying asset is low value.