3. Description of significant accounting policies
Major accounting policies and estimates and judgements applied in the preparation of these consolidated financial statements are presented below and in the notes. These policies were applied consistently in all the years presented, with the exception of the changes which followed from the implementation of IFRS 16 “Leases” on 1 January 2019, which are described in Note “Leases”.
2019
Below is a summary of accounting policies and major estimates and judgements for the individual items of the
consolidated income statement and the consolidated statement of financial position.
| CONSOLIDATED INCOME STATEMENT | Note | Accounting policy* |
Major estimates |
|---|---|---|---|
| Interest income and expense | 6 | Y | |
| Fee and commission income and expenses | 7 | Y | |
| Dividend income | 8 | Y | |
| Net gain/(loss) in financial instruments measured at fair value through profit or loss | 9 | Y | Y |
| Net foreign exchange gains / (losses) | 10 | Y | Y |
| Gains/(losses) on derecognition of financial instruments not measured at fair value through profit or loss | 3 | Y | |
| Net expected credit losses | 26 | Y | Y |
| Impairment of non-financial assets | 27 | Y | Y |
| Cost of the legal risk of mortgage loans in convertible currencies other | 61 | Y | |
| Other operating income and expenses | 14 | Y | |
| Administrative expenses | 15 | Y | Y |
| Net regulatory charges | 16 | Y | |
| Tax on certain financial institutions | 17 | ||
| Income tax expense | 18 | Y |
*The letter Y indicates the description of a particular accounting policy or major estimates and judgements in the relevant note.
| CONSOLIDATED STATEMENT OF FINANCIAL POSITION | Note | Accounting policy* | Major estimates and judgments* |
| Cash and balances with Central Bank | 19 | Y | |
| Amounts due from banks | 3, 20 | Y | |
| Hedging derivatives | 21 | Y | |
| Other derivative instruments | 22 | Y | Y |
| Securities | 3, 24, 26 | Y | |
| Loans and advances to customers | 3, 25, 26 | Y | Y |
| Intangible assets | 27 | Y | Y |
| Property, plant and equipment | 27 | Y | Y |
| Deferred income tax asset | 18 | Y | |
| Other assets | 28 | Y | |
| Amounts due to banks | 3, 29 | Y | |
| Amounts due to customers | 3, 30 | Y | |
| Liabilities in respect of insurance activities | 32 | Y | |
| Liabilities in respect of securities in issue | 3 | Y | |
| Subordinated liabilities | 3 | Y | |
| Other liabilities | 35 | Y | |
| Provisions | 36 | Y | Y |
| Equity | 37 | Y |
*The letter Y indicates the description of a particular accounting policy or major estimates and judgements in the relevant note.