Page 309 - ACCESS BANK ANNUAL REPORTS_eBook

Impairment loss for the year:
- Additional provision 549,920 - (315,930) -
Net impairment 549,920 - (315,930) -

Allowance written off (847,456) - (555,818) -
Balance as at 31 December 2017 2,645,320 25,001 2,071,109 25,001

Inventory consists of blank debit cards, cheque leaves, computer consumables and other stationery held by the Bank.
Increase in prepayments resulted from services that have been paid in advance for the year for which the amortization will
be over the relevant year of service. These include rents and advertisements.

27(a) Subsidiaries (with continuing operations)
(i) Group entities

Set out below are the group’s subsidiaries as at 31 December 2017. Unless otherwise stated, the subsidiaries listed below
have share capital consisting solely of ordinary shares, which are held directly by the group and the proportion of owner-
ship interests held equals to the voting rights held by the group. The country of incorporation is also their principal place of
business.

There are no significant restrictions on the Group’s ability to access or use the assets and settle the liabilities of any mem-
ber of the Group to the extent that regulation does not inhibit the group from having access, and in liquidation scenario,
this restriction is limited to its level of investment in the entity.
There are no significant restrictions on the ability of subsidiaries to transfer funds to the Group in the form of cash divi-
dends or repayment of loans and advances

Ownership interest
Nature of Country of December December
business incorporation 2017 2016

Access Bank Gambia Limited Banking Gambia 88% 64%
Access Bank Sierra Leone Limited Banking Sierra Leone 97% 97%
Access Bank Rwanda Limited Banking Rwanda 75% 75%
Access Bank Zambia Banking Zambia 70% 92%
The Access Bank UK Banking United Kingdom 100% 100%
Access Bank R.D. Congo Banking Congo 99.98% 74%
Access Bank Ghana Banking Ghana 91% 91%
Access Finance B.V. Banking Netherlands 100% 100%

Access Finance B.V. was incorporated in 2011 and commenced operations in 2012. An obligation also exists between
the Bank and Access Finance B.V., for which Access Finance B.V. lent to the Bank the sum of USD 2,462,000 as a share
premium loan. The loan agreement between both parties however permits that the obligation of Access Finance B.V. to
grant the loan, be set off against the obligation of the Bank to repay the loan such that each party’s obligation either as a
borrower or lender is discharged. In view of this, no loan payable has been recognized in the Bank’s financial statements.

The transaction for which the entity was set up matured during the year. Management has not decided on the possibility
of the entity existing beyond the maturity of the obligation.

Access BAnk Plc 309
Annual Report & Accounts 2017