NOTES TO THE FINANCIAL STATEMENTS Continued
1. ACCOUNTING POLICIES continued Financial Instruments
Investments which are not subsidiaries
Trade payables are recognised
Sections 11 and 12 of FRS 102 in respect
is normally the transaction price. Such
at transaction price as all of them are
“The company has chosen to adopt of financial instruments. (i) Financial assets
Basic financial assets, including trade
and other receivables, cash and bank balances are initially recognised at
are initially measured at fair value, which assets are subsequently carried at fair
value and the changes in fair value are recognised in fair value reserve.
Financial assets are derecognised when •
transaction price.
At the end of each reporting period financial assets are assessed for
(a) the contractual rights to the cash flows from the asset expire or are settled, or
•
initially and subsequently measured current.
Financial liabilities are derecognised
when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. (iii) Offsetting
(b) substantially all the risks and
Financial assets and liabilities are offset
asset are transferred to another
financial statements when there is a
objective evidence of impairment. If an
rewards of the ownership of the
and the net amounts presented in the
is the difference between the carrying
party.
legally enforceable right to set off the
asset is impaired the impairment loss
amount and the estimated cash flows. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring
after the impairment was recognised, the impairment is reversed.
The reversal is such that the current
carrying amount does not exceed what the carrying amount would have been
had the impairment not previously been recognised.
The impairment reversal is recognised in
(ii) Financial liabilities
Basic financial liabilities include trade
and other payables, and loans. They are initially recognised at transaction price.
recognised amounts and there is an
intention to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Accounts payable are classified as
current liabilities if payment is due
within one year or less. If not, they are presented as non-current liabilities.
profit or loss.
48
2018/2019 ANNUAL ACCOUNTS