Page 172 - ACCESS BANK ANNUAL REPORTS_eBook

from financing activities are disclosed (to the extent necessary):
(i) changes from financing cash flows;
(ii) changes arising from obtaining or losing control of subsidiaries or other businesses;
(iii) the effect of changes in foreign exchange rates;
(iv) changes in fair values; and (v) other changes.

(b) New and amended standards and interpretations not yet adopted by the Group

As at year end, a number of standards and interpretations, and amendments thereto, had been issued
by the IASB which are not yet effective for these consolidated financial statements. Details are set out
below.
IFRS 9 Financial Instruments: Classification and Measurement (effective 1 January 2018)

“The International Accounting Standards Board (IASB) issued the final version of IFRS 9 Financial
Instruments in July 2014. The standard is effective for annual periods beginning on or after 1 January
2018, with early adoption permitted. It replaces IAS 39 Financial Instruments: Recognition and Mea-
surement.
As permitted by the transitional provisions of IFRS 9, the Group elected not to restate comparative
figures.
Any adjustments to the carrying amounts of financial assets and liabilities at the date of transition will
be recognised in the opening retained earnings and other reserves of the current period.
The adoption of IFRS 9 has resulted in changes in our accounting policies for recognition, classification
and measurement of financial assets and financial liabilities and impairment of financial assets. IFRS 9
also significantly amends other standards dealing with financial instruments such as IFRS 7 Financial
Instruments: Disclosures.
Set out below are disclosures relating to the impact of the adoption of IFRS 9 on the Group.

Classification and measurement of financial instruments
There were no changes to the classification and measurement of financial liabilities, other than to changes in the fair value
of financial liabilities designated at fair value through profit or loss that are attributable to changes in the instrument’s
credit risk, which are now presented in other comprehensive income.

Decisions points
The implementation of IFRS 9 requires certain decisions to be taken by the management and approved in line the relevant
governance framework. Management has assessed the complexity of each decision point and identified a range of policy
options available for each. Management also considered conceptual suitability, implementation feasibility and regulatory
directives on each option. A summary of key decision points, policy options for each decision point and the policy chosen
by management is shown below:

S/N Area Decision
1 Determining lifetime PDs Use external lifetime PD term structure
2 Determining other lifetime inputs Assume external 12M is a reasonable proxy
3 Source of macroeconomic inputs Combine internal & external sources
4 Quantification of impact Combined approach
5 Incorporating multiple scenarios Probability weighted provisions
6 Incorporating multiple non-macroeconomic sce- Probability weighted provisions
narios
7 Origination date Last re-price
9 Key origination inputs Internal and external credit scores

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Annual Report & Accounts 2017