Impairment provisions

Impairment provisions are made against losses incurred on impaired financial assets measured at amortised cost. The provisions can be individually or collectively assessed. The impairment provision is an annual charge to the income statement. The cumulative impairment provisions (or reserves) are deducted from the respective assets on the balance sheet and represent the difference between carrying value and the present value of estimated future cash flows discounted at the asset’s original effective interest