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CDL Hospitality TrustS
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Notes to the Financial Statements
3 Significant accounting policies (cont’d)
3.4 Financial instruments (cont’d)
Non-derivative fnancial assets (cont’d)
Financial assets and liabilities are offset and the net amount presented in the statement of fnancial
position when, and only when, the H-REIT Group or the Stapled 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.
Non-derivative fnancial assets are classifed into loans and receivables category.
Loans and receivables
Loans and receivables are fnancial assets with fxed 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.
Loans and receivables comprise trade and other receivables, cash and cash equivalents and
rental deposits.
Cash and cash equivalents
Cash and cash equivalents comprise bank balances and fxed deposits.
Non-derivative fnancial liabilities
Debt securities issued and subordinated liabilities are initially recognised on the date that they
are originated. All other fnancial liabilities are recognised initially on the trade date, which is the
date that the H-REIT Group or the Stapled Group becomes a party to the contractual provisions
of the instrument.
A fnancial liability is derecognised when its contractual obligations are discharged, cancelled
or expired.
Financial assets and liabilities are offset and the net amount presented in the statement of
fnancial position when, and only when, the H-REIT Group or the Stapled 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.
Non-derivative fnancial liabilities are classifed into the other fnancial liabilities category. Such
fnancial liabilities are recognised initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition, these fnancial liabilities are measured at amortised
cost using the effective interest method.
Other fnancial liabilities comprise loans and borrowings, trade and other payables and
rental deposits.