Page 182 - KRCL ENglish

interest method, except for contingent consideration recognized in a business
combination which is subsequently measured at fair value through prot or loss. For
trade and other payables maturing within one year from the balance sheet date, the
carrying amounts approximate fair value due to the short maturity of these
instruments.

De-recognition of Financial Liabilities
Financial liabilities are de-recognised when the obligation specied in the contract is
discharged, cancelled or expired. When an existing nancial liability is replaced by
another from the same lender on substantially different terms, or the terms of an
existing liability are substantially modied, such an exchange or modication is
treated as de-recognition of the original liability and recognition of a new liability. The
difference in the respective carrying amounts is recognised in the Statement of Prot
and Loss.

Offsetting Financial Liabilities
Financial assets and nancial liabilities are offset and the net amount is reported in the
Balance Sheet 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.

Q. Current and Non-Current Classications:
The Corporation presents assets and liabilities in the balance sheet based on current/
non-current classication.

An asset as current when it is:
• Expected to be realised or intended to sold or consumed in normal operating
cycle
• Occurs primarily for the purpose of trading
• Expected to be realised within twelve months after the reporting period, or
• Cash or cash equivalent unless restricted from being exchanged or used to settle
a liability for at least twelve months after the reporting period

All other assets are classied as non-current.

A liability is current when:
• It is expected to be settled in normal operating cycle
• It is held primarily for the purpose of trading
• It is due to be settled within twelve months after the reporting period, or
• There is no unconditional right to defer the settlement of the liability for at least
twelve months after the reporting period

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