ANNUAL REPORT 2015 |
113
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.11 Financial instruments (cont’d)
(a) Financial assets (cont’d)
(iv) Available-for-sale financial assets
Financial assets classified as available-for-sale comprise non-derivative financial assets that are designated as
available for sale or are not classified as loans and receivables, held-to-maturity investments or financial assets
at fair value through profit or loss.
Subsequent to initial recognition, financial assets classified as available-for-sale are measured at fair value.
Any gains or losses arising from changes in the fair value of financial assets classified as available-for-sale are
recognised directly in other comprehensive income, except for impairment losses and foreign exchange gains
and losses, until the financial asset is derecognised, at which time the cumulative gains or losses previously
recognised in other comprehensive income are recognised in profit or loss. However, interest calculated
using the effective interest method is recognised in profit or loss whilst dividends on available-for-sale equity
instruments are recognised in profit or loss when the right of the Group to receive payment is established.
Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid investments
which have an insignificant risk of changes in fair value with original maturities of three (3) months or less, and are
used by the Group and the Company in the management of their short term commitments. For the purpose of the
statement of cash flows, cash and cash equivalents are presented net of bank overdrafts and pledged deposits.
Afinancial asset is derecognisedwhen the contractual right to receive cash flows fromthe financial asset has expired.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of
consideration received (including any new asset obtained less any new liability assumed) and any cumulative gain
or loss that had been recognised directly in other comprehensive income shall be recognised in profit or loss.
A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose terms require
delivery of the asset within the time frame established generally by regulation or marketplace convention.
A regular way purchase or sale of financial assets shall be recognised and derecognised, as applicable, using trade
date accounting.
(b) Financial liabilities
Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual
arrangement. A financial liability is classified into the following two (2) categories after initial recognition for the
purpose of subsequent measurement:
(i) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss comprise financial liabilities that are held for trading,
derivatives (both, freestanding and embedded) and financial liabilities that were specifically designated into
this classification upon initial recognition.
Subsequent to initial recognition, financial liabilities classified as at fair value through profit or loss aremeasured
at fair value. Any gains or losses arising from changes in the fair value of financial liabilities classified as at fair
value through profit or loss are recognised in profit or loss. Net gains or losses on financial liabilities classified
as at fair value through profit or loss exclude foreign exchange gains and losses, interest and dividend income.
Such income is recognised separately in profit or loss as components of other income or other operating losses.
