ANNUAL REPORT 2014
55
NOTES TO THE
FINANCIAL STATEMENTS
2.
Significant accounting policies (continued)
(c) Financial instruments (continued)
(ii) Financial instrument categories and subsequent measurement (continued)
Financial liabilities
All financial liabilities are subsequently measured at amortised cost other than those categorised as
fair value through profit or loss.
Fair value through profit or loss category comprises financial liabilities that are derivatives (except
for a derivative that is a designated and effective hedging instrument) or financial liabilities that are
specifically designated into this category upon initial recognition.
Other financial liabilities categorised as fair value through profit or loss are subsequently measured at
their fair values with the gain or loss recognised in profit or loss.
(iii) Regular way purchase or sale of financial assets
A regular way purchase or sale is a purchase or sale of a financial asset under a contract whose
terms require delivery of the asset within the time frame established generally by regulation or
convention in the marketplace concerned.
A regular way purchase or sale of financial assets is recognised and derecognised, as applicable,
using trade date accounting. Trade date accounting refers to:
(a)
the recognition of an asset to be received and the liability to pay for it on the trade date, and
(b)
derecognition of an asset that is sold, recognition of any gain or loss on disposal and the
recognition of a receivable from the buyer for payment on the trade date.
(iv) Derecognition
A financial asset or part of it is derecognised when, and only when the contractual rights to the
cash flows from the financial asset expire or control of the asset is not retained or substantially all
of the risks and rewards of ownership of the financial asset are transferred to another party. On
derecognition of a financial asset, the difference between the carrying amount and the sum of the
consideration received (including any new asset obtained less any new liability assumed) and any
cumulative gain or loss that had been recognised in equity is recognised in the profit or loss.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the
contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference
between the carrying amount of the financial liability extinguished or transferred to another party and
the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised
in the profit or loss.
(d) Property, plant and equipment
(i)
Recognition and measurement
Items of property, plant and equipment are stated at cost/revaluation less any accumulated
depreciation and any accumulated impairment losses.
Freehold land is stated at revaluation.
