Impairmen t Financial as se ts T he Gr oup s primary t ype o f fnancial as se ts subjec t t o AA SB 9 s ne w e xpec t ed cr edit los s model is tr ade r ec eiv ables T he Gr oup has applied the simplifed appr oach permitt ed in AA SB 9 which r equir es the use o f the lif e time e xpec t ed los s pr o vision f or al l r ec eiv ables wher e as AA SB 139 oper a t ed under an incurr ed los s model and w ould only r ec ognise impairmen ts when ther e w as objec tiv e e videnc e An impairmen t los s in r espec t o f a fnancial as se t me asur ed a t amor tised c os t is calcula t ed as the dif f er enc e be tw een its carrying amoun t and the pr esen t v alue o f the es tima t ed fu tur e cash fo ws disc oun t ed a t the original e f f ec tiv e in t er es t r a t e An impairmen t los s in r espec t o f an a v ailable f or s ale fnancial as se t is calcula t ed b y r e f er enc e t o its f air v alue Individual ly signifcan t fnancial as se ts ar e t es t ed f or impair men t on an individual basis T he r emaining fnancial as se ts ar e as ses sed c ol lec tiv ely in gr oups tha t shar e similar cr edit risk char ac t eris tics Al l impairmen t los ses ar e r ec ognised in the pr o ft and los s st a t e m e nt An impairmen t los s is r e v ersed if the r e v ers al can be r ela t ed objec tiv ely t o an e v en t oc curring a f t er the impairmen t los s w as r ec ognised F or fnancial as se ts me asur ed a t amor tised c os t the r e v ers al is r ec ognised in the pr o ft and los s s t a t emen t Non fnancial as se ts T he carrying amoun ts o f the Gr oup s non fnancial as se ts o ther than in v en t ories see no t e 2b and de f err ed t a x as se ts see no t e 6b ar e r e vie w ed a t e ach balanc e shee t da t e t o de t ermine whe ther ther e is an y indica tion o f impairmen t If an y such indica tion e xis ts the as se t s r ec o v er able amoun t is es tima t ed F or goodwil l as se ts tha t ha v e an inde fnit e use ful lif e and in t angible as se ts tha t ar e no t y e t a v ailable f or use the r ec o v er able amoun t is es tima t ed a t e ach balanc e shee t da t e An impairmen t los s is r ec ognised whene v er the carrying amoun t o f an as se t or its cash gener a ting unit e x c eeds its r ec o v er able amoun t Impairmen t los ses ar e r ec ognised in the pr o ft and los s s t a t emen t unles s an as se t has pr e vi ously been r e v alued in which case the impairmen t los s is r ec ognised as a r e v ers al t o the e xt en t o f tha t pr e vious r e v alua tion with an y e x c es s r ec ognised thr ough the pr o ft and los s s t a t emen t Impairmen t los ses r ec ognised in r espec t o f cash gener a ting units ar e al loca t ed frs t t o r educ e the carrying amoun t o f an y goodwil l al loca t ed t o cash gener a ting units gr oup o f units and then t o r educ e the carrying amoun t o f the o ther as se ts in the unit gr oup o f units on a pr o r a t a basis Goodwil l tha t f orms par t o f the carrying amoun t o f an in v es tmen t in equit y ac c oun t ed in v es t ees is no t r ec ognised separ a t ely and ther e f or e is no t t es t ed f or impairmen t sepa r a t ely Ins t e ad the en tir e amoun t o f the in v es tmen t is t es t ed f or impairmen t as a single as se t when ther e is objec tiv e e videnc e tha t the in v es tmen t ma y be impair ed Hedging C ash fo w hedges W her e a deriv a tiv e fnancial ins trumen t is designa t ed as a hedge o f the v ariabilit y in cash fo ws o f a r ec ognised as se t or liabilit y or a highly pr obable f or ecas t tr ans ac tion the e f f ec tiv e por tion o f an y gain or los s on the deriv a tiv e fnancial ins trumen t is r ec ognised in o ther c ompr ehensiv e inc ome and pr esen t ed in the hedging r eserv e in equit y W hen the f or ecas t tr ans ac tion subsequen tly r esults in the r ec ognition o f a non fnancial as se t or non fnancial liabilit y or the f or e cas t tr ans ac tion f or a non fnancial as se t or non fnancial liabilit y the as socia t ed cumula tiv e gain or los s is tr ans f err ed fr om o ther c ompr ehensiv e inc ome and included in the ini tial c os t or o ther carrying amoun t o f the non fnancial as se t or liabilit y In o ther cases the amoun t r ec ognised in o ther c ompr ehensiv e inc ome is tr ans f err ed t o the pr o ft and los s s t a t emen t in the s ame period tha t the hedged it em a f f ec ts pr o ft or los s T he ine f f ec tiv e por tion o f an y change in f air v alue is r ec og nised immedia t ely in the pr o ft and los s s t a t emen t W hen a hedging ins trumen t e xpir es or is sold t ermina t ed or e x er cised or the en tit y r e v ok es designa tion o f the hedge r e la tionship but the hedged f or ecas t tr ans ac tion is s til l e xpec t ed t o oc cur the cumula tiv e gain or los s a t tha t poin t r emains in equit y and is r ec ognised in ac c or danc e with the abo v e polic y when the tr ans ac tion oc curs If the hedged tr ans ac tion is no longer e xpec t ed t o t ak e plac e the cumula tiv e unr e al ised gain or los s r ec ognised in o ther c ompr ehensiv e inc ome is r ec ognised immedia t ely in the pr o ft and los s s t a t emen t F air v alue hedges Changes in the f air v alue o f a deriv a tiv e hedging ins trumen t designa t ed as a f air v alue hedge ar e r ec ognised in the pr o ft or los s T he hedged it em also is s t a t ed a t f air v alue in r espec t o f the risk being hedged the gain or los s a ttribut a ble t o the hedged risk is r ec ognised in pr o ft or los s with an ad jus tmen t t o the carrying amoun t o f the hedged it em E c onomic hedges W her e a deriv a tiv e fnancial ins trumen t is no t designa t ed in a qualif ying hedge r ela tionship al l changes in f air v alue ar e r ec ognised in the pr o ft and los s s t a t emen t F or eign curr enc y F or eign curr enc y tr ans ac tions T r ans ac tions in f or eign curr encies ar e tr ansla t ed a t the f or eign e x change r a t e ruling a t the da t e o f the tr ans ac tion Mone t ary as se ts and liabilities denomina t ed in f or eign curr encies a t the balanc e shee t da t e ar e tr ansla t ed t o Aus tr alian dol lars a t the f or eign e x change r a t e ruling a t tha t da t e F or eign e x change dif f er enc es arising on tr ansla tion ar e r ec ognised in the pr o ft and los s s t a t emen t e x c ep t f or dif f er enc es arising on the tr ansla tion o f a fnancial liabilit y designa t ed as a hedge o f the ne t in v es tmen t in a f or eign oper a tion or qualif ying cash fo w hedges which ar e r ec ognised in o ther c ompr ehensiv e inc ome Nonmone t ary as se ts and liabilities tha t ar e me asur ed in t erms o f his t orical 76 ALS LIMITED AND IT S SUBSIDIARIES A NNU AL F INANCIAL R EPOR T F OR THE Y EAR E NDED 31 M AR CH 2019 F INANCIAL REPOR T F INANCIAL S T A TEMENT S N O TES T O THE FINANCIAL S T A TEMENT S Other in f orma tion