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ANNUAL REPORT 2014
3 SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
3.6 Financial instruments
Non-derivative financial assets
Loans and receivables and deposits are initially recognised on the date that they are originated. All other
financial assets 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 Stapled Group derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or they transfer the rights to receive the contractual cash flows on the financial asset in a transaction in
which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in
transferred financial assets that is created or retained by the Stapled Group is recognised as a separate asset
or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position
when, and only when, 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 financial assets are classified into loans and receivables category.
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.
Loans and receivables comprise trade and other receivables (except prepayments and deferred capital
expenditure), cash and cash equivalents and rental deposits.
Cash and cash equivalents
Cash and cash equivalents comprise bank balances and fixed deposits.
Non-derivative financial liabilities
Debt securities issued and subordinated liabilities are initially recognised on the date that they are originated.
All other financial liabilities are recognised initially on the trade date, which is the date that the Stapled Group
becomes a party to the contractual provisions of the instrument.
A financial 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 financial position
when, and only when, 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 financial liabilities are classified into the other financial liabilities category. Such financial
liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial
recognition, these financial liabilities are measured at amortised cost using the effective interest method.
Other financial liabilities comprise loans and borrowings, trade and other payables and rental deposits.
NOTES TO THE FINANCIAL STATEMENTS
