1 SIGNIFICANT ACCOUNTING POLICIES Revenue …（1重大会计政策收入u2026）.pdfVIP

1 SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements as set out below have been applied consistently to all periods presented in the financial statements. (a) Revenue recognition Revenue is derived substantially from banking business and related activities and comprises net interest income and non-interest income. Income is recognised on an accrual basis in the period in which it accrues. (i) Net interest income Interest income and expenses are recognised in profit or loss for all interest-bearing instruments on an accrual basis using the effective interest method. The effective interest rate is the rate that exactly discounts the expected estimated future cash payments and receipts through the expected life of the financial asset or liability. Where financial assets have been impaired, interest income continues to be recognised on the impaired value, based on the original effective interest rate. External expenses incurred directly as a result of bringing margin-yielding assets on- balance sheet are amortised through interest income over the life of the asset. (ii) Fees and commission income Fees and commission income is generally recognised when the related services are provided or on execution of a significant act. Fees charged for servicing a loan are recognised as revenue as the service is provided. (iii)