Overview Our Business
Strategic Review Corporate Governance
Financial Statements
Other Information
page
93
Notes to the Financial Statements
31 December 2015
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Financial instruments (continued)
(i)
Classification and measurement
Financial assets
The Group and the Company classify their financial assets in the following categories: at fair value through profit or loss, held-to-
maturity, loans and receivables, and available-for-sale. The classification depends on the purpose for which the financial assets were
acquired. Management determines the classification of financial assets at initial recognition and, in the case of assets classified as
held-to-maturity, reassesses this designation at each reporting date.
The Group and the Company do not hold any financial assets carried at fair value through profit or loss (except for derivative financial
instruments) and held-to-maturity. See accounting policy Note 3(h) on derivative financial instruments and hedging activities.
Financial assets are classified as current assets; except for maturities greater than 12 months after the reporting date, in which case
they are classified as non-current assets.
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. Financial assets in this category are initially recognised at fair value plus transaction costs that are directly attributable to
the acquisition of the financial asset and subsequently carried at amortised cost using the effective interest method. Changes in the
carrying value of these assets are recognised in the statement of profit or loss.
The Group’s and the Company’s loans and receivables comprise receivables (including inter-companies and related parties balances),
cash and cash equivalents in the statement of financial position.
Available-for-sale
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other
categories. Financial assets in this category are initially recognised at fair value plus transaction costs that are directly attributable
to the acquisition of the financial asset and subsequently, at fair value. Any gains or losses from changes in fair value of the financial
assets are recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary
instruments, interest and dividends are recognised in the statement of profit or loss. The cumulative gain or loss previously recognised
in other comprehensive income is reclassified from equity to the statement of profit or loss as a reclassification adjustment when the
financial asset is derecognised.
Investments in equity instruments for which the fair value cannot be reliably measured are recognised at cost less impairment loss.
The Group’s available-for-sale financial asset comprises investment in unquoted shares.
