Page 181 - ACCESS BANK ANNUAL REPORTS_eBook

Interest income and expense presented in the statement of comprehensive income include:
• interest on financial assets and financial liabilities measured at amortised cost calculated on
an effective interest rate basis.
• interest on available-for-sale investment securities calculated on an effective interest basis

(b) Fees and commission
Fees and commission income and expenses that are integral to the effective interest rate on a financial
asset or liability are included in the measurement of the effective interest rate.

When a loan commitment is not expected to result in the draw-down of a loan, loan commitment fees
are recognised on a straight-line basis over the commitment year.

Fee and commission presented in the income statement includes:
• Credit related fees and commission: These fees are not integral to the loans and are there-
fore not included in the EIR calculation. These are recognised as the related services are performed.
When a loan commitment is not expected to result in the draw-down of a loan, loan commitment fees
are recognised on a straight-line basis over the commitment year.
• Current account maintenance fees (formerly Commission on Turnover): This fee is charged
as N1 on every N1,000 in respect of all customer induced debit transactions. This fee is recognised
one-off by the bank.

• Other fees and commission income, includes card related commissions, commission on let-
ters of credit, account servicing fees, investment management and other fiduciary activity fees, sales
commission, placement fees and syndication fees. These fees and commissions are recognised as the
related services are performed

(c) Net loss/gains on investment securities
Net loss/gains on investment securities comprise of the following:
• Net gains/losses on financial instruments classified as held for trading: This includes the
gains and losses arising both on the purchase and sale of trading instruments and from changes in fair
value of derivatives instruments.

• Net gains on financial instruments held as available for sale: This relates to gains arising from
the disposal of financial instruments held as available for sale as well as fair value changes reclassified
from other comprehensive income upon disposal.

(d) Foreign exchange income
Foreign exchange income includes foreign exchange gains on revaluation and unrealised foreign ex-
change gains on revaluation.

(e) Other operating income
Other operating income includes items such as dividends, gains on disposal of properties, rental in-
come, income from asset management, brokerage and agency as well as income from other invest-
ments.

• Dividend on available for sale equity securities: This is recognised when the right to receive
payment is established. Dividends are reflected as a component of other operating income.

3.7 Lease payments
Payments made under operating leases are recognised in the income statement on a straight-line basis over
the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense,
over the term of the lease.

Minimum lease payments made under finance leases are apportioned between the finance expense and the
reduction of the outstanding liability. The finance expense is allocated to each year during the lease term so as
to produce a constant yearic rate of interest on the remaining balance of the liability. Contingent lease payments
shall be charged as expenses in the periods in which they are incurred.

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Annual Report & Accounts 2017