A N N U A L R E P O R T 2 0 1 6
78
NOTES TO THE
FINANCIAL STATEMENTS
For the Financial Year Ended 31 March 2016
2.
Summary of significant accounting policies (cont’d)
2.11
Financial instruments
(a)
Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Group becomes a party to the contractual provisions of the financial
instrument. The Group determines the classification of its financial assets at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at fair value
through profit or loss, directly attributable transaction costs.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as follows:
(i)
Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified
as loans and receivables. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the
effective interest method, less impairment. Gains and losses are recognised in profit or loss when the loans and receivables
are derecognised or impaired, and through the amortisation process.
(ii)
Available-for-sale financial assets
Equity investments classified as available-for-sale are those, which are neither classified as held for trading nor designated at
fair value through profit or loss.
Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss.
