Senwes Annual Financial Statements 2022 | Page 45

SENWES ANNUAL FINANCIAL STATEMENTS 2022
9 . LOANS AND OTHER RECEIVABLES
Represent debtors for financing of mortgage loans ( note 9.1 ) granted over varying terms of up to 120 months . The underlying asset serves as security for the loans / agreements . Interest rates are market-related and can be variable or fixed , depending on the specific agreement .
GROUP 2022 R ' m
2021 R ' m
COMPANY 2022 R ' m
Notes
Gross investment in mortgage loans
2,195
2,264
16
28
Less : Unearned finance income
( 565 )
( 548 )
-
-
Carrying amount
1,630
1,716
16
28
Less : Current portion
11
( 330 )
( 337 )
( 15 )
( 25 )
Total loans and other receivables before allowance for expected credit losses
1,300
1,379
1
3
Allowance for expected credit losses
9.1.4
-
( 3 )
-
( 2 )
Total loans and other receivables
9.1
1,300
1,376
1
1
2021 R ' m
9.1 Mortgage loans
GROUP 2022 R ' m
2021 R ' m
COMPANY 2022 R ' m
Note
Within one year
330
338
15
26
After one year but not more than five years
951
971
1
2
More than five years
349
407
-
-
Carrying amount
1,630
1,716
16
28
Less : Current portion
( 330 )
( 337 )
( 15 )
( 25 )
Total mortgage loans before allowance for expected credit losses
1,300
1,379
1
3
Allowance for expected credit losses
9.1.4
-
( 3 )
-
( 2 )
Total
1,300
1,376
1
1
9.1.1 Terms and conditions
Mortgage loans are repayable over 2 to 10 years , secured mainly by first bonds over property . The interest rates are market-related , depending on the specific agreement .
9.1.2 Allowance for impairment
The calculation method of the allowance for impairment of the loans receivable must be read in conjunction with note 11 . Refer to note 11.5 since the allowance for impairments forms part of the portfolio impairment allowance .
9.1.3 Fair value
As indicated in note 9.1.2 , the method of impairment allowance is disclosed in note 11 and the long-term loans receivable need to be read in conjunction with note 11 . The amortised cost of the long-term loans are reflected in note 9.1 , 2022 : R1,3 billion ( 2021 : R1,4 billion ), and approximates the fair value of these loans .
9.1.4 Expected credit losses
GROUP
2022
2021
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
R ' m
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Gross mortgage loans
778
805
47
1,630
750
929
37
1,716
Allowance for expected credit losses
-
-
-
-
( 1 )
-
( 2 )
( 3 )
Opening balance
( 1 )
-
( 2 )
( 3 )
-
( 1 )
( 12 )
( 13 )
New assets originated or purchased
-
-
-
-
( 1 )
-
-
( 1 )
Payments and assets derecognised
-
-
-
-
-
1
15
16
Transfer to stage 1
-
-
-
-
-
-
-
-
Transfer to stage 2
-
-
-
-
-
-
-
-
Transfer to stage 3
-
-
-
-
-
-
( 7 )
( 7 )
Amount written off
1
-
2
3
-
-
2
2
Effect of changes in assumptions
-
-
-
-
-
-
-
-
Net mortgage loans
778
805
47
1,630
749
929
35
1,713
Movements in stages during the year : Stage 1 to Stage 2
-
-
-
-
( 27 )
27
-
-
Stage 1 to Stage 3
( 19 )
-
19
-
( 24 )
-
24
-
Stage 2 to stage 1
-
-
-
-
9
( 9 )
-
-
Stage 2 to stage 3
-
-
-
-
-
( 1 )
1
-
Total Movements
( 19 )
-
19
-
( 42 )
17
25
-
2021 R ' m

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