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Financial assets at amortised cost

The Group measures financial assets at amortised cost if the financial asset is held in order

to collect contractual cash flows and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

Financial assets at amortised cost are subsequently measured using the effective interest

rate (“EIR”) method and are subject to impairment. Gains and losses are recognised in profit
or loss when the asset is derecognised, modified or impaired.

Financial assets designated at FVOCI (equity instruments)

Upon initial recognition, the Group can elect to irrevocably classify its equity investments
which are not held for trading as equity instruments designated at FVOCI. The classification

is determined on an instrument-by-instrument basis.

Gains and losses recognised in other comprehensive income on these financial assets are
never recycled to profit or loss.

Dividends are recognised as other income in profit or loss, except when the dividends clearly
represent a recovery of part of the cost of the financial asset, in which case, the gains are

recognised in other comprehensive income.

Equity instruments designated at FVOCI are not subject to impairment assessment.

Financial assets at FVTPL

Financial assets measured at FVTPL are carried in the statement of financial position at fair
value with net changes in fair value recognised in profit or loss.

These financial assets include derivatives, security investments held for trading, equity
investments which the Group has not irrevocably elected to classify at FVOCI and financial

assets with cash flows that are not solely payments of principal and interest.

Classification and measurement of financial liabilities

Except for derivative liabilities, at initial recognition the Group’s financial liabilities are
recognised at fair value net of transaction costs and classified as liabilities to be subsequently
measured at amortised cost using the EIR method. Gains and losses are recognised in profit

or loss when the liabilities are derecognised as well as through the EIR amortisation process.
In determining amortised cost, the Group takes into account any fees or costs that are an
integral part of the EIR. The EIR amortisation is included in finance costs in profit or loss.

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