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Offsetting of financial instruments

Financial assets and financial liabilities are offset, and the net amount is reported in the
statement of financial position if there is a currently enforceable legal right to offset the
recognised amounts and there is an intention to settle on a net basis, to realise the assets

and settle the liabilities simultaneously.

Accounting policies adopted before 1 January 2020
Trade accounts receivable

Trade accounts receivable are stated at the net realisable value. Allowance for doubtful

accounts is provided for the estimated losses that may be incurred in collection of receivables.
The allowance is generally based on collection experience and analysis of debt aging.

Investments

Investments in matual fund are stated at fair value, determined from their net assets value.
The weighted average method is used for computation of the cost of investments.

In the event the Group reclassifies investments from one type to another, such investments

will be readjusted to their fair value as at the reclassification date. The difference between
the carrying amount of the investments and the fair value on the date of reclassification are
recorded in profit or loss or recorded as other components of shareholders’ equity, depending
on the type of investment that is reclassified.

On disposal of an investment, the difference between net disposal proceeds and the carrying
amount of the investment is recognised in profit or loss.

5.21 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between buyer and seller (market participants) at the measurement

date. The Group apply a quoted market price in an active market to measure their assets and
liabilities that are required to be measured at fair value by relevant financial reporting
standards. Except in case of no active market of an identical asset or liability or when a quoted
market price is not available, the Group measure fair value using valuation technique that are
appropriate in the circumstances and maximises the use of relevant observable inputs related
to assets and liabilities that are required to be measured at fair value.

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