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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e)
Financial instruments (Continued)
(i)
Non-derivative financial assets (Continued)
Financial assets and liabilities are offset and the net amount presented in the Statement of Financial
Position when, and only when, the Group has a legal right to offset the amounts and intends either to
settle on a net basis or to realise the asset and settle the liability simultaneously.
The Group has the following non-derivative financial assets: available-for-sale financial assets and loans
and receivables.
Available-for-sale financial assets
Investment in equity security is classified as available-for-sale financial asset. Subsequent to initial
recognition, it is measured at fair value and changes therein, other than impairment losses, and foreign
currency differences on available-for-sale debt instruments, are recognised in other comprehensive
income and presented in the fair value reserve in equity. Investment in unquoted equity securities that
do not have a quoted market price or whose fair value cannot be reliably measured shall be measured at
cost less impairment losses. When the investment is derecognised, the cumulative gain or loss in equity
is transferred to profit or loss.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an
active market. Such assets are recognised initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the
effective interest method, less any impairment losses.
Cash and cash equivalents comprise cash balances and bank deposits. Cash equivalents are short-term,
highly liquid investments that are readily convertible to known amounts of cash and which are subject to
an insignificant risk of changes in value.
(ii)
Non-derivative financial liabilities
The Group initially recognises debt securities issued on the date that they are originated. All other financial
liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on
the trade date, which is the date that the Group becomes a party to the contractual provisions of the
instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled
or when they expire.
SAR1112034_TCT_AR_().indb 73
3/23/2012
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