NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
NOT E 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES continue d 
 
ii) Loans and receivables 
Loans and receivables are non -derivative financial assets with fixed or determinable payments that are not quoted 
in an active market and are subsequently measured at amortised cost using the effective interest rate method.  
 
iii) Held-to-maturity investments 
Held-to-maturity investments are non- derivative financial assets that have fixed maturities and fixed or 
determinable payments, and it is the Group’s intention to hold these investments to maturity. They are subsequently 
measured at amortised cost using the effective interest rate method.  
 
iv) Available-for-sale financial assets 
Available-for-sale financial assets are non -derivative financial assets that are either designated as such or that are 
not classified in any of the other categories. They comprise investments in the equity of other entities where there 
is neither a fixed maturity nor fixed determinable payments. 
 
v) Financial liabilities 
Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost 
using the effective interest rate method. 
 
Derecognition 
Financial assets are derecognised when the contractual right to receipt of cash flows expires  or the asset is 
transferred to another party whereby the entity no longer has any significant continuing involvement in the risks 
and benefits associated with the asset. Financial liabilities are derecognised when the related obligations are either 
discharged, cancelled or expire. The di fference between the carrying value of the financial liability extinguished or 
transferred to another party and the fair value of consideration paid, including the transfer of non -cash assets or 
liabilities assumed, is recognised in profit or loss. 
 
f) Impairment of Non -Financial Assets 
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any 
indication of impairment.  Where an indicator of impairment exists, a formal esti mate of the recoverable amount is 
made. 
 
Exploration and evaluation assets are assessed for impairment in accordance with Note 1(b).  
 
Development and production assets are assessed for impairment on a cash-generating unit basis.  A cash-generating 
unit is the smallest grouping of assets that generates independent cash inflows.  Management has assessed its CGUs 
as being an individual basin, which is the lowest level for which cash inflows are largely independent of those of 
other assets.  Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying 
amount of the assets in the unit on a pro-rata basis. 
 
An impairment loss is recognized in the income statement whenever the carrying amount of an asset  or its cash -
generating unit exceeds its recoverable amount. 
 
  
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