Page 109 - inside page.cdr

ANNUAL REPORT 2018 - 2019
NOTES FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 3 1ST MARCH 201 9
exceedsbenefits,whichareinitiallymeasuredatthetransactionprice.Transactioncostsdirectlyrelated
to the acquisition or issue of the financial assets and financial liabilities (other than financial assets and
financial liabilities through profit and loss account) are added to or deducted from the cost of financial
assets and financial liabilities.Transaction costs directly attributable to the acquisition or issue of the
financial assets and financial liabilities at fair value through profit and loss account are recognized
immediatelyinthestatementofprofitandloss.

b. ClassificationandSubsequentMeasurement
i. Amortisedcost:
A financial asset is measured at amortised cost if it is held within a business model whose objective is to
hold the asset 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
principalamountoutstanding.

ii. Fairvaluethroughothercomprehensiveincome(FVOCI):
A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and
interestontheprincipalamountoutstanding.
iii. Fairvaluethroughprofitandloss(FVTPL):

A financial asset which is not classified in any of the above categories are measured at FVTPL.
Financial assets are not reclassified subsequent to their recognition, except if and in the period the
Companychangesitsbusinessmodelformanagingfinancialassets.
iv. InvestmentsinSubsidiaries

Investments in subsidiaries are carried at cost less accumulated impairment losses, if any. Where an
indication of impairment exists,the carrying amount of the investment is assessed and written down
immediately to its recoverable amount. On disposal of investments in subsidiaries, the difference
betweennetdisposalproceedsandthecarryingamountsarerecognizedintheStatementofProfitand
Loss.
v. EquityInstruments

An equity instrument is any contract that evidences a residual interest in the assets of the Company
after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of
directissuecosts.
All equity investments are measured at fair value,with value changes recognised in Statement of Profit
and Loss,except for those equity investments for which the Company has elected to present the value
changesin‘OtherComprehensiveIncome.
vi. CashandBankBalances
Cash and cash equivalents – which includes cash in hand,deposits at call with banks and other short-
term deposits which are readily convertible into cash and which are subject to an insignificant risk of
changesinvalueandhavematuritiesoflessthanoneyearfromthedateofsuchdeposits.
Other Bank Balances – which includes balances and deposits with banks that are restricted for
withdrawalandusage.
vii. TradeReceivablesandLoans
Trade receivables are initially recognised at fair value.Subsequently,these assets are held at amortised
cost,using the effective interest rate (EIR) method net of any expected credit losses.The EIR is the rate
thatdiscountsestimatedfuturecashincomethroughtheexpectedlifeoffinancialinstrument. 105
NOTES TO THE ACCOUNTS