Page 179 - Index

Mission-Critical Decisions, Made with Confidence.
After impairment, depreciation is provided
on the revised carrying amount of the asset
over its remaining useful life.
b) Impairment of financial assets
In accordance with Ind-AS 109, the Group
applies Expected Credit Loss (ECL) model for
measurement and recognition of impairment
loss on the following financial assets and credit
risk exposure:
i) Financial assets that are measured at
amortised cost e.g., loans, deposits, and
bank balance.
ii) Trade receivables.
The Group follows ‘simplified approach’ for
recognition of impairment loss allowance
on trade receivables which do not contain a
significant financing component. The application
of simplified approach does not require the
Group to track changes in credit risk. Rather, it
recognises impairment loss allowance based on
lifetime ECLs at each reporting date.
For all other financial assets, ECL is measured at
an amount equal to the twelve month ECL unless
there has been a significant increase in credit risk
from the initial recognition in which case those
are measured at lifetime ECL.
2.11 Business combinations
Business combinations have been accounted for using
the acquisition method under the provisions of Ind AS
103. The acquisition date is the date on which control
is transferred to the acquirer. The Group measures
goodwill as of the applicable acquisition date at the
fair value of the consideration transferred, less the net
recognised amount of the identifiable assets acquired
and liabilities (including contingent liabilities) acquired.
When the fair value of the net identifiable assets
acquired and liabilities acquired exceeds the
consideration transferred, a bargain purchase gain is
recognised as capital reserve. Business combinations
between entities under common control is accounted
at carrying value.
Transaction cost that the Group incurs in connection
with business combinations such as finder fees, legal
fees and other professional and consulting fees are
expensed as incurred.
Goodwill is measured at cost less accumulated
impairment loss.
2.12 Leases
The Group’s lease assets consists of office premises.
The Group assesses whether a contract contains
a lease, at inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to
control the use of an identified asset for a period of
time in exchange for consideration.
To assess whether a contract conveys the right to
control the use of an identified asset, the Group
assesses whether:
(i) the contract involves the use of an identified asset
(ii) the Group has substantially all of the economic
benefits from use of the asset through the period
of the lease and
(iii) the Group has the right to direct the use of
the asset
Where the Group is a lessee
The Group determines the lease term as the non-
cancellable period of a lease, together with periods
covered by an option to extend the lease, where the
Group is reasonably certain to exercise that option.
At the date of commencement of the lease, the Group
recognises a right of use asset and a corresponding
lease liability for all lease arrangements in which it is a
lessee, except for leases with a term of twelve months
or less (short-term leases) and leases of low value
assets. For these short-term and leases of low value
assets, the Group recognises the lease payments as
an operating expense on a straight-line basis over the
term of the lease.
The cost of the right of use asset measured at
inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any
lease payments made at or before the commencement
date less any lease incentives received, plus any initial
direct costs incurred and an estimate of costs to be
incurred by the lessee in dismantling and removing the
underlying asset or restoring the underlying asset or
site on which it is located.
The right of use assets is subsequently measured at
cost less any accumulated depreciation, accumulated
impairment losses, if any and adjusted for any
remeasurement of the lease liability. The right of use
Annual Report 2024
177
Financial Statements