Financial assets at fair value through the income statement | Accounting for financial assets designated at fair value Financial assets, other than those held for trading, are classified in this category if they are so irrevocably designated at inception and the use of the designation removes or significantly reduces an accounting mismatch. Subsequent changes in fair value for these instruments are recognised in the income statement in net investment income, except if reporting it in trading income reduces an accounting mismatch. The details on how the fair value amounts are derived for financial assets at fair value are described in Note 16. | Accounting for financial assets mandatorily at fair value Financial assets that are held for trading are recognised at fair value through profit or loss. In addition, financial assets are held at fair value through profit or loss if they do not contain contractual terms that give rise on specified dates to cash flows that are Solely Payments of Principal and Interest (SPPI), or if the financial asset is not held in a business model that is either (i) a business model to collect the contractual cash flows or (ii) a business model that is achieved by both collecting contractual cash flows and selling. |
| | | | | | | | | | | | | | | | | | | | Financial assets designated at fair value | | | | | | | | | | | | | | | Reverse repurchase agreements and other similar secured lending | | | | | | Financial assets mandatorily at fair value | | | | | |
The following table shows the maximum exposure to credit risk, the changes in fair value attributable to changes in credit risk, and the cumulative changes in fair value since initial recognition for loans and advances. The table does not include debt securities as they have minimal exposure to credit risk due to limited gross exposure. | | | | | | | | | | | | | | Maximum exposure as at 31 December | Changes in fair value during the year ended | Cumulative changes in fair value from inception | | | | | | | | | | | | | | | Loans and advances designated at fair value, attributable to credit risk | | | | | | | Value mitigated by related credit derivatives | | | | | | |
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