Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 2. ACCOUNTING POLICIES (CONT’D) 2.4 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONT’D) New and amended standards and interpretation (Cont’d) IFRS 9 - Financial Instruments (Cont’d) Impact on IFRS 9 adoption (Cont’d) THE COMPANY IAS 39 Measurement Re-measurement IFRS 9 Category Amount ECL Others Amount Category Financial assets MUR M MUR M MUR M MUR M Cash and bank balances L&R 107.9 - - 107.9 AC Deposit with banks L&R 524.5 (0.7) - 523.8 AC Loans and advances L&R 1,105.5 (3.7) - 1,101.8 AC Investment in financial assets - Equity investments AFS 1.2 - - 1.2 FVTPL Debts instruments designated at FVTPL FVTPL 1,589.7 - - 1,589.7 FVTPL Other assets - Receivables L & R 373.0 (0.9) - 372.1 AC 3,701.8 (5.3) - 3,696.5 Deferred tax impact - Impact on retained earnings (5.3) Financial liabilities Other borrowed funds AC 1,396.9 - - 1,396.9 AC Other liabilities Trade and other payables AC 111.1 - - 111.1 AC Foreign currency derivatives FVTPL 20.0 - - 20.0 FVTPL 1,528.0 - - 1,528.0 L&R: Loans and receivables N/A: Not applicable AFS: Available for sale FVTPL: Fair value through profit or loss AC: Amortised cost IFRS 15 - Revenue from Contracts with Customers IFRS 15 issued in May 2014, and amended in April 2016, establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard supersedes all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 January 2018. Early adoption is permitted. The Group adopted the new standard on the required effective date using the modified retrospective approach. No major impact was noted from the adoption of IFRS 15 given that the main revenue streams of the Group do not fall under the scope of IFRS 15. CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 75