Page 27 - Directors' report and accounts 2019-20

24
Notes to and forming part of the Consolidated Financial Statements for the year ended 30 June 2020
C3 Financial Instruments
(continued)
Derecognition
Financial assets The Group derecognises a a a a a a a a a a financial financial asset asset when the the the contractual rights to the the the cash flows from the the the financial financial asset asset expire or it transfers the the rights to receive the the contractual cash flows in in a a a a a a a a a a transaction in in which substantially all all of the the the the risks and rewards of of ownership of of the the the the financial asset are transferred or in in which the the the the Group neither transfers nor retains substantially all all of of of the the risks and and rewards of of of ownership and and it does not retain retain control of of of the the financial asset The Group enters into transactions whereby it it it transfers assets recognised in in in its statement of financial position but retains either all all all or substantially all all all of of the the the the the risks and rewards of of the the the the the transferred assets In these cases the the the the the transferred assets assets are not derecognised Financial assets assets at fair value through profit or loss Financial liabilities The Group derecognises a a a a a a a a a a financial liability when its contractual obligations are discharged or or cancelled or or expire The Group also derecognises a a a a a a a a financial liability when its terms are modified and the the cash flows of the the modified modified liability liability are substantially different in in which case a a a a a a a a a a new financial liability liability based on the modified modified terms is recognised at fair value On derecognition of a a a a a a a financial liability the the the difference between the the the carrying amount extinguished and the the the consideration paid (including any non-cash assets transferred or or liabilities assumed) is is recognised in in in profit or or loss Offsetting
Financial assets and and financial financial liabilities are offset and and the the net amount presented in in in in the the statement of of financial financial position when when and and only when when the the Group currently has a a a a a a a legally enforceable right to set off the the amounts and and it it intends either to to settle settle them on a a a a a a a net basis or to to realise the the the the asset and settle settle the the the the liability simultaneously Impairment of financial assets The Group recognises loss allowances for ECLs on financial assets measured at amortised cost debt investments measured at at FVOCI and contract assets The Group measures loss allowances at at an an an amount equal to lifetime ECLs When determining whether the the credit risk of a a a a a a a a financial asset has increased significantly since initial recognition and and when estimating ECLs the Group considers reasonable and and supportable information that is reliable
and and and available without undue cost or or or effort This includes both quantitative and and and qualitative information and and and analysis based on the Group's historical experience and informed credit assessment including forward-looking information The Group assumes that the credit risk on a a a a a a a a a a a financial asset has increased significantly if if it it is is more than 30 days past due