Notes to the Financial Statements
71
Notes to the Financial Statements
continued
u
which the Group becomes a party to the 
contractual provisions of the instrument.
The Group derecognises a financial asset when 
the contractual rights to the cash flows from the 
asset expire, or it transfers 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 
assets are transferred.
Financial assets and liabilities are offset and the 
net amount presented in the statement of 
financial position when, and only when, the 
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.
(i)  Financial assets at fair value through  
profit or loss
Financial assets at fair value through profit or loss 
are financial assets held for trading if acquired 
principally for the purpose of selling in the short 
term. Derivatives are also categorised as held for 
trading unless they are designated as hedges. 
Attributable transaction costs are recognised in 
the profit or loss when incurred. Assets in this 
category are classified as current assets if they 
are expected to be settled within 12 months, 
otherwise they are classified as non-current.
(ii) Loans and receivables
Loans and receivables are non-derivative finan -
cial assets with fixed or determinable payments 
that are not quoted in an active market. They 
are included in current assets, except for those 
with maturities greater than 12 months after 
the reporting date which are classified as non-
current assets.
Loans and receivables are measured at amor-
tised cost using the effective interest method, 
less any impairment losses.
(iii) Available-for-sale financial assets
Available-for-sale financial assets, comprising 
principally marketable equity securities, are 
non-derivative financial assets that are either 
designated in this category or not classified in 
any of the other categories. They are included in 
non-current assets unless management intends 
to dispose of the investment within 12 months 
of the reporting date. Investments are desig-
nated as available-for-sale if they do not have 
fixed maturities and fixed or determinable 
payments and management intends to hold 
them for the medium to long term.
Subsequent to initial recognition, available-for-
sale financial assets are measured at fair value 
and changes therein, other than impairment 
losses, are recognised as a separate component 
of equity net of attributable tax. When an asset 
is derecognised the cumulative gain or loss in 
equity is transferred to the statement of 
comprehensive income.
Impairment
The Group assesses at each reporting date 
whether there is objective evidence that a 
financial asset or group of financial assets is 
impaired. In the case of equity securities classi-
fied as available-for-sale, a significant or 
prolonged decline in the fair value of a security 
below its cost is considered as an indicator that 
the securities are impaired. If any such evidence 
exists for available-for-sale financial assets, the 
cumulative loss measured as the difference 
between the acquisition cost and the current 
fair value, less any impairment loss on that 
financial asset previously recognised in profit or 
loss, is removed from equity and recognised in 
the statement of comprehensive income. 
Impairment losses recognised in the profit or 
loss on equity instruments classified as avail-
able-for-sale are not reversed through the state-
ment of comprehensive income.
If there is evidence of impairment for any of the 
Group’s financial assets carried at amortised 
cost, the loss is measured as the difference 
between the asset’s carrying amount and the 
present value of estimated future cash flows, 
excluding future credit losses that have not been 
incurred. The cash flows are discounted at the