(xiv) Impairment Loan assets held at amortised cost  Loans and receivables  Other financial assets at fair value through profit or loss Investment securities available for sale  (xiii) Non-current assets and disposal groups  classified as held for sale  Investment securities available for sale This category includes loan assets held at amortised cost and  amounts due from subsidiaries, which are non-derivative  financial assets with fixed or determinable payments that are  not quoted in an active market. This category includes only those financial assets which have  been designated by management as held at fair value through  profit or loss on initial recognition. The policy of management is to designate a financial asset  as such if: the asset contains embedded derivatives which  must otherwise be separated and carried at fair value; it is  part of a group of financial assets managed and evaluated  on a fair value basis; or doing so eliminates or significantly  reduces a measurement or recognition inconsistency that  would otherwise arise. Interest income on debt securities  designated as at fair value through profit or loss is recognised  in the income statement in interest income using the effective  interest method as disclosed in note 1(vi).  Investment securities available for sale comprise securities  that are not actively traded and are intended to be held for an  indefinite period. Such securities are available for sale and may  be sold should the need arise, including purposes of liquidity,  or due to the impacts of changes in interest rates, foreign  exchange rates or equity prices. Investment securities available for sale are initially carried at  fair value plus transaction costs. Gains and losses arising from  subsequent changes in fair value are recognised directly in the  available for sale reserve in equity until the asset is  derecognised or impaired, at which time the cumulative gain or  loss is recognised in the income statement. Fair values of  quoted investments in active markets are based on current bid  prices. If the relevant market is not considered active (or the  securities are unlisted), fair value is established by valuation  techniques, including recent arm’s length  transactions, discounted cash flow analysis and other  valuation techniques commonly used by market participants.  Interest income on debt securities available for sale is  recognised in the income statement in interest income using  the effective interest method as disclosed in note 1(vi).  This category includes interests in associates and joint  ventures for which their carrying amount will be recovered  principally through a sale transaction rather than continuing  use, and subsidiaries held exclusively with a view to sale. These  assets are classified as held for sale when it is highly probable  that the asset will be sold within 12 months subsequent to being  classified as such. Where there is a planned partial disposal of  a subsidiary resulting in loss of control, all of the assets and  liabilities of the subsidiary are classified as held for sale.  Non-current assets and assets of disposal groups classified as  held for sale are measured at the lower of their carrying amount  and fair value less costs to sell. These assets are not depreciated. An impairment loss is recognised for any initial or subsequent  write down of the asset to fair value less costs to sell. A gain is  recognised for any subsequent increase in fair value less costs  to sell, limited by the cumulative impairment loss previously  recognised. A gain or loss not previously recognised by the  date of sale is recognised at the date of sale.  Loan assets are subject to regular review and assessment  for possible impairment. Provisions for impairment on loan  assets are recognised based on an incurred loss model and re-assessed at each balance date. A provision for impairment  is recognised when there is objective evidence of impairment,  and is calculated based on the present value of expected future  cash flows, discounted using the original effective interest rate.  Individually assessed provisions for impairment are recognised  where impairment of individual loans are identified. Where  individual loans are found not to be impaired, they are placed  into pools of assets with similar risk profiles and collectively  assessed for losses that have been incurred but are not yet  specifically identifiable.  The Consolidated Entity makes judgements as to whether  there is any observable data indicating that there is a significant  decrease in the estimated future cash flows from a portfolio of  loans before the decrease can be identified with an individual  loan in that portfolio. This evidence may include observable  data indicating that there has been an adverse change in the  payment status of the borrowers in a group, or national or local  economic conditions that correlate with defaults on assets in  the group. Management uses estimates based on historical  loss experience for assets with credit risk characteristics and  objective evidence of impairment similar to those in the portfolio  when scheduling its future cash flows. The methodology and  assumptions used for estimating both the amount and timing  of future cash flows are reviewed regularly to reduce any  differences between loss estimates and actual loss experience.  Changes in assumptions used for estimating future cash flows  could result in a change in the estimated provisions for  impairment on loan assets at the end of a reporting period.  If, in a subsequent period, the amount of impairment losses  decrease and the decrease can be related objectively to an  event occurring after the impairment losses were recognised,  the previously recognised impairment losses are reversed  through the income statement to the extent of what the  amortised cost would have been had the impairment not  been recognised.  The Consolidated Entity performs an assessment at each  balance date to determine whether there is any objective  evidence that available for sale financial assets have been  impaired. Impairment exists if there is objective evidence of  impairment as a result of one or more events (loss event)  which have an impact on the estimated future cash flows  of the financial asset that can be reliably estimated. For equity securities classified as available for sale, the main  indicators of impairment are: significant changes in the market,  economic or legal environment and a significant or prolonged  decline in fair value below cost. In making this judgement, the  Consolidated Entity evaluates among other factors, the normal  volatility in share price and the period of time for which fair value  has been below cost. 109 