Page 31 - GTBank Annual Report 2020 eBook

If material information is hidden by immaterial 3.2 Standards issued but not yet adopted
information to the extent that it becomes unclear The following standards have been issued or
what information is material. amended by the IASB but are yet to become

The Bank has taken into consideration the new effective for annual periods beginning on or
definition in the preparation of its financial after 1 January 2020:
statement.

Standard Content Effective Date

IFRS 17 Insurance Contracts 1-Jan-21
The Bank has not applied the following new or amended standards in preparing these financial
statements as it plans to adopt these standards at their respective effective dates. Commentaries on

these new standards/amendments are provided below.

IFRS 17 - Insurance Contracts reporting date. Non-monetary items measured at
historical cost denominated in a foreign currency
The IASB issued IFRS 17 in May 2017 and
applies to annual reporting periods beginning on are translated with the exchange rate as at the
or after 1 January 2021. The new IFRS 17 date of initial recognition; non-monetary items in
standard establishes the principles for the a foreign currency that are measured at fair value
recognition, measurement, presentation and are translated using the exchange rates at the
disclosure of Insurance contracts within the date when the fair value was determined.
scope of the Standard. The objective of IFRS 17 Foreign exchange gains and losses resulting
is to ensure an entity provides relevant from the settlement of foreign currency
information that faithfully represents those transactions and from the translation at year-end
contracts. This information gives a basis for users exchange rates of monetary assets and liabilities
foreign
currencies
denominated
in
are
of financial statements to assess the effect that recognized in the Income statement, except when
insurance contracts have on the entity’s financial deferred in equity as gains or losses from
position, financial performance and cash flows. qualifying cash flow hedging instruments or
This standard does not impact the Bank in qualifying net investment hedging instruments.
anyway as the Bank does not engage in All foreign exchange gains and losses recognized
insurance business.
in the Income statement are presented net in the
3.3. Foreign currency translation Income statement within the corresponding item.
Foreign exchange gains and losses on other
(i) Functional and presentation currency comprehensive income items are presented in
other comprehensive income within the
Items included in the financial statements of the corresponding item.
Bank are measured using the currency of the In the case of changes in the fair value of
primary economic environment in which the bank monetary assets denominated in foreign
operates (‘the functional currency’). currency, a distinction is made between
translation differences resulting from changes in
(ii)Transactions and balances amortized cost of the security and other changes
in the carrying amount of the security. Translation
Transactions denominated, or that requires differences related to changes in the amortized
settlement, in a foreign currency are translated cost are recognized in profit or loss, and other
into the functional currency using the exchange changes in the carrying amount, except
rates prevailing at the dates of the transactions. impairment, are recognized in equity.
Monetary items denominated in foreign currency
are translated using the closing rate as at the Annual Report 2020

Guaranty Trust Bank Gambia Limited www.gtbankgambia.com 29