Page 44 - GTBANK GAMNBIA 2021 ANNUAL REPORT

6. Internal Audit Validate ECL • Conduct periodic review and validation of the
valuation approved Internal Ratings assigned to respective
Obligors by Internal Audit Department
• Independent validation of the ECL valuation semi-
annually
7. External Auditors Validate ECL • Semi-annual review and validation of the
valuation Internal Ratings
• Semi-annual review and validation of ECL
valuation

3.7. Reclassifications example, if the Bank decides to shut down the retail
business segment on 31st January 2018, the
Financial assets are not reclassified subsequent to their reclassification date will be 1 April, 2018 (i.e. the first
initial recognition, except in the year after the Bank day of the entity’s next reporting year), the Bank shall
changes its business model for managing financial not engage in activities consistent with its former
assets. A change in the Bank’s business model will business model after 31st January 2018. Gains, losses
occur only when the Bank either begins or ceases to or interest previously recognised are not be restated
perform an activity that is significant to its operations when reclassification occurs.
such as:
3.8. Property, equipment and right-of-use assets
✓ Significant internal restructuring or business
combinations; for example an acquisition of a (i) Recognition and measurement
private asset management company that might
necessitate transfer and sale of loans to willing
buyers, this action will constitute changes in The Bank recognizes items of property, plant and
business model and subsequent reclassification equipment at the time the cost is incurred. These costs
include costs incurred initially to acquire or construct an
of the Loan held from BM1 to BM2 Category
✓ Disposal of a business line i.e. disposal of a item of property and equipment. Its cost also includes the
costs of its dismantlement, removal or restoration, the
business segment
✓ Any other reason that might warrant a change in obligation for which an entity incurs as a consequence of
using the item during a particular year.
the Bank’s business model as determined by Items of property and equipment are measured at cost
management based on facts and circumstances. less accumulated depreciation and impairment losses.

Cost includes expenditures that are directly attributable to
The following are not considered to be changes in the the acquisition of the asset. When parts of an item of
business model: property or equipment have different useful lives, they are
accounted for as separate items (major components) of
✓ A change in intention related to particular property and equipment.
financial assets (even in circumstances of The assets’ carrying values and useful lives are reviewed,
significant changes in market conditions) and written down if appropriate, at each date of the
✓ A temporary disappearance of a particular market Statements of financial position. Assets are impaired
for financial assets. whenever events or changes in circumstances indicate
✓ A transfer of financial assets between parts of the that the carrying amount is less than the recoverable
bank with different business models. amount; see note (s) on impairment of nonfinancial
assets.
When reclassification occurs, the Bank reclassifies all
affected financial assets in accordance with the new (ii) Subsequent costs
business model. Reclassification is applied
prospectively from the ‘reclassification date’. The cost of replacing part of an item of property or
Reclassification date is ‘the first day of the first reporting equipment is recognized in the carrying amount of the
year following the change in business model. For
item if it is probable that the future economic benefits
Annual Report 2021

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