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AfrAsia Bank Limited and its Group Entities
Annual Report 2015
page 293
noteS to the finanCial StatementS
for the year ended 30 June 2015
42. OFFSETTING FINANCIAL INSTRUMENTS (CONTINUED)
The Bank entered into various forward-geared contracts with Firstrand Bank. On maturity of these contracts, the Bank will be required to pay only the net
amount. Hence the fair value of all the forward geared contracts has been offset in the financial statements.
The Bank receives cash collaterals as security on various loan arrangements. The Bank has a right to offset these cash collaterals against the loan amounts
on default of the Bank’s clients. As at 30 June 2015 and 2014 these amounts have been shown in “due to customers” and have not been offset against the
loan balances.