81
A N N U A L R E P O R T 2 0 1 6
For the Financial Year Ended 31 March 2016
NOTES TO THE
FINANCIAL STATEMENTS
2.
Summary of significant accounting policies (cont¡¯d)
2.12
Impairment of financial assets (cont¡¯d)
(a)
Financial assets carried at amortised cost (cont¡¯d)
If in a subsequent year, the amount of the impairment loss decreases and the decrease can be related objectively to an event
occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the extent that the carrying
value of the asset does not exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.
(b)
Available-for-sale financial assets
In the case of equity investments classified as available-for-sale, objective evidence of impairment include (i) significant financial
difficulty of the issuer or obligor, (ii) information about significant changes with an adverse effect that have taken place in the
technological, market, economic or legal environment in which the issuer operates, and indicates that the cost of the investment in
equity instrument may not be recovered; and (iii) a significant or prolonged decline in the fair value of the investment below its costs.
¡®Significant¡¯ is to be evaluated against the original cost of the investment and ¡®prolonged¡¯ against the period in which the fair value
has been below its original cost.
If an available-for-sale financial asset is impaired, an amount comprising the difference between its acquisition cost (net of any
principal repayment and amortisation) and its current fair value, less any impairment loss previously recognised in profit or loss,
is transferred from other comprehensive income and recognised in profit or loss. Reversals of impairment losses in respect of
equity instruments are not recognised in profit or loss; increase in their fair value after impairment are recognised directly in other
comprehensive income.
2.13
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and at bank, and demand deposits that are readily convertible to known amount of cash
and which are subject to an insignificant risk of changes in value.
2.14
Inventories
Inventories are stated at the lower of cost and net realisable value.
Cost of raw materials and sundry consumables is determined on a first-in first-out basis and includes all costs in bringing the inventories to
their present location and condition.
