Notes to Consolidated Financial Statements continued Thousands of Georgian Lari 3. Summary of Significant Accounting Policies continued Adoption of new or revised standards and interpretations continued The following table reconciles the aggregate opening loan loss provision allowance under IAS 39 and provisions for loan commitments and financial guarantees contracts in accordance with IAS 37 Provisions, Contingent liabilities and Contingent Assets to the ECL allowance under IFRS 9. Loan loss provision under ECL net-off on ECLs under IAS 39/IAS 37 Remeasurement accrued interest IFRS 9 31 December 1 January Loans and receivables (IAS 39)/Financial assets at amortised cost (IFRS 9) 2017 2018 Cash and cash equivalents – 80 – 80 Amounts due from credit institutions – 598 – 598 Loans to customers 276,885 36,919 17,273 331,077 Accounts receivable and other loans 4,003 6,822 – 10,825 Allowance of assets of disposal group held for sale 14,692 6,535 – 21,227 Other assets 42,225 (1) – 42,224 337,805 50,953 17,273 406,031 Available for sale financial instruments (IAS 39)/Financial assets at FVOCI (IFRS 9) Investment securities – 3,350 – 3,350 – 3,350 – 3,350 Finance lease receivables 2,380 (92) – 2,288 Provisions 5,915 867 – 6,782 346,100 55,078 17,273 418,451 Hedge accounting IFRS 9 incorporates new hedge accounting rules that intend to better align hedge accounting with risk management practices. Generally, some restrictions under IAS 39 rules have been removed and a greater variety of hedging instruments and hedged items become available for hedge accounting. IFRS 9 includes an accounting policy choice to defer the adoption of IFRS 9 hedge accounting and to continue with IAS 39 hedge accounting. The Group has not applied hedge accounting. IFRS 2 Classification and Measurement of Share-based Payment Transactions – Amendments to IFRS 2 The IASB issued amendments to IFRS 2 Share-based Payment that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding tax obligations; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash-settled to equity-settled. The amendment has no effect on the Group’s financial position and performance. 204 Annual Report 2018Bank of Georgia Group PLC