Page 17 - NYAA FY2024

Docusign Envelope ID: F067D57E-6E60-4F26-8227-97F17DC4DBB9

NATIONAL YOUTH ACHIEVEMENT AWARD ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2024

2. Material accounting policy information (continued)

2.10 Leases (continued)

(ii) When the Association is the lessor: (continued)

For contract which contains lease and non-lease components, the
Association allocates the consideration based on a relative stand-alone
selling price basis.

2.11 Financial assets

The Association classifies all its financial assets at amortised cost.

The classification of debt instruments depends on the Association's business model
for managing the financial assets as well as the contractual terms of the cash flows
of the financial assets.

The Association reclassifies debt instruments when and only when its business
model for managing those assets changes.

(i) At initial recognition

At initial recognition, the Association measures a financial asset at its fair
value plus transaction costs that are directly attributable to the acquisition of
the financial assets.

Debt instruments of the Association mainly comprise cash and bank
deposits, deposits and other current assets excluding prepayments.

The Association managed this group of financial assets by collecting the
contractual cash flow and these cash flows represent solely payment of
principal and interest. Accordingly, these groups of financial assets are
measured at amortised cost subsequent to initial recognition.

A gain or loss on a debt investment that is subsequently measured at
amortised cost and is not part of a hedging relationship is recognised in the
income and expenditure statement when the asset is derecognised or
impaired.

The Association assesses on a forward-looking basis the expected credit
losses associated with its debt instruments carried at amortised cost.

For receivables, the Association applied the simplified approach permitted
by the FRS 109, which requires expected lifetime losses to be recognised
from the initial recognition of the receivables.

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