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- 18 -and above traffic receivable is being applied. For receivable balances that appeardoubtful of collection, allowance is provided after review of the status ofsettlement with each carrier and roaming partner, taking into consideration normalpayment cycles, recovery experience and credit history of the counterparties.2.7.4.2.1.3 Other receivablesOther receivables from dealers, credit card companies and other parties areprovided with allowance for impairment losses if specifically identified to bedoubtful of collection regardless of the age of the account.2.7.4.2.2 AFS investments carried at costIf there is objective evidence that an impairment loss has been incurred on anunquoted equity instrument that is not carried at fair value because its fair valuecannot be reliably measured, or on a derivative asset that is linked to and must besettled by delivery of such unquoted equity instrument, the amount of the loss ismeasured as the difference between the asset’s carrying amount and the present valueof estimated future cash flows discounted at the current market rate of return for asimilar financial asset. The carrying amount of the asset is reduced through the use ofan allowance account.2.7.4.2.3 AFS investments carried at fair valueIf an AFS investment carried at fair value is impaired, an amount comprising thedifference between its cost (net of any principal repayment and amortization) and itscurrent fair value, less any impairment loss previously recognized in profit or loss, istransferred from equity to profit or loss. Reversals of impairment losses in respect ofequity instruments classified as AFS are not recognized in profit or loss. Reversals ofimpairment losses on debt instruments are made through profit or loss if the increasein fair value of the instrument can be objectively related to an event occurring after theimpairment loss was recognized in profit or loss.2.7.4.3 Derecognition of Financial Instruments2.7.4.3.1 Financial AssetA financial asset (or, where applicable a part of a financial asset or part of a group offinancial assets) is derecognized where:the rights to receive cash flows from the asset have expired;the Globe Group retains the right to receive cash flows from the asset, but hasassumed an obligation to pay them in full without material delay to a third partyunder a “pass-through” arrangement; orthe Globe Group has transferred its rights to receive cash flows from the asset andeither (a) has transferred substantially all the risks and rewards of ownership or(b) has neither transferred nor retained the risk and rewards of the asset but hastransferred the control of the asset.Where the Globe Group has transferred its rights to receive cash flows from an assetand has neither transferred nor retained substantially all the risks and rewards of theasset nor transferred control of the asset, the asset is recognized to the extent of theGlobe Group’s continuing involvement that takes the form of a guarantee over thetransferred asset, which is measured at the lower of the original carrying amount ofthe asset and the maximum amount of consideration that the Globe Group could berequired to pay.*SGVFS000196*