SEC Form 20-IS - iRemit Global Remittance

- 7 -
If the Parent Company determines that no objective evidence of impairment exists for an
individually assessed financial asset, whether significant or not, it includes the asset in a group of
financial assets with similar credit risk characteristics and collectively assesses for impairment.
Those characteristics are relevant to the estimation of future cash flows for groups of such assets
by being indicative of the debtors’ ability to pay all amounts due according to the contractual
terms of the assets being evaluated. Assets that are individually assessed for impairment and for
which an impairment loss is, or continues to be, recognized are not included in a collective
assessment for impairment.
The present value of the estimated future cash flows is discounted at the financial asset’s original
EIR. If a financial asset has a variable interest rate, the discount rate for measuring any
impairment loss is the current EIR, adjusted for the original credit risk premium.
For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis
of such credit risk characteristics as geographical classification. Future cash flows in a group of
financial assets that are collectively evaluated for impairment are estimated on the basis of
historical loss experience for assets with credit risk characteristics similar to those in the group.
Historical loss experience is adjusted on the basis of current observable data to reflect the effects
of current conditions that did not affect the period on which the historical loss experience is based
and to remove the effects of conditions in the historical period that do not exist currently.
Estimates of changes in future cash flows reflect, and are directionally consistent with changes in
related observable data from period to period (such as changes in payment status, or other factors
that are indicative of incurred losses in the group and their magnitude). The methodology and
assumptions used for estimating future cash flows are reviewed regularly by the Parent Company
to reduce any differences between loss estimates and actual loss experience.
Investments in Subsidiaries and Associates
Subsidiaries
Investments in subsidiaries in the parent company financial statements are accounted for at cost.
Subsidiaries of the Parent Company are shown in Note 1.
Associates
The Parent Company’s investments in its associates are accounted for at cost. An associate is an
entity in which the Parent Company has significant influence. The Parent Company's investments
in associates include its 49.00% interest in ISPL and HKHCL, entities based in Singapore and
Taiwan, respectively.
Property and Equipment
Property and equipment is stated at cost less accumulated depreciation and amortization and any
impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly
attributable costs of bringing the property and equipment to its working condition and location for
its intended use.
Expenditures incurred after the property and equipment have been put into operation, such as
repairs and maintenance are normally charged to operations in the year in which the costs are
incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in
an increase in the future economic benefits expected to be obtained from the use of an item of
property and equipment beyond its originally assessed standard of performance, the expenditures
are capitalized as an additional cost of property and equipment.
*SGVMC116501*