SEC Form 20-IS - iRemit Global Remittance

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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 Group to reduce
any differences between loss estimates and actual loss experience.
Investments in Associates
The Group’s investments in its associates are accounted for using the equity method of
accounting. An associate is an entity in which the Group has significant influence. The Group’s
investments in associates include its 49.00% interest in ISPL and HKHCL, entities based in
Singapore and Taiwan, respectively.
Under the equity method, the investment in the associate is carried in the consolidated balance
sheet at cost plus post acquisition changes in the Group’s share in the net assets of the associate.
The consolidated statement of income reflects the share in the results of operations of the
associate. Where there has been a change recognized directly in the equity of the associate, the
Group recognizes its share of any changes, as applicable, in the consolidated statement of changes
in equity. Unrealized gains and losses resulting from transactions between the Group and the
associate are eliminated to the extent of the interest in the associate.
The Group’s share in the net income (loss) of its associates is shown in the consolidated statement
of income as ‘Equity in net earnings of associates’. This is the profit attributable to equity holders
of the associate and therefore is profit after tax and noncontrolling interests in the subsidiaries of
the associates.
The financial statements of the associates are prepared for the same reporting period as the Parent
Company.
After application of the equity method, the Group determines whether it is necessary to recognize
an impairment loss on the Group’s investment in its associates. The Group determines at each
balance sheet date whether there is any objective evidence that the investment in the associate is
impaired. If this is the case, the Group calculates the amount of impairment as the difference
between the recoverable amount of the associate and its carrying value and recognizes the amount
as impairment loss in the consolidated statement of income.
Upon loss of significant influence over the associate, the Group measures and recognizes any
remaining investment at its fair value. Any difference between the carrying amount of the
associate upon loss of significant influence and the fair value of the retaining investment and
proceeds from disposal is recognized in profit or loss.
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.
*SGVMC116502*