Page 19 - Bahamas Waste inside pages

NOTES TO FINANCIAL STATEMENTS
(Expressed in Bahamian Dollars)
December 31, 2018
2. SuMMARY OF SIgNIFICANT ACCOuNTINg pOLICIES (CONTINuED)
Financial Instruments – initial recognition, subsequent measurement, and impairment effective January 1, 2018
(continued)
Subsequent Measurement
For purposes of subsequent measurement, financial assets are classified into four categories:
• Financial assets at amortized cost (debt instruments)
• Financial assets at fair value through OCI (FVOCI) with recycling of cumulative gains and losses (debt instruments)
• FinancialassetsdesignatedatfairvaluethroughOCI(FVOCI)withnorecyclingofcumulativegainsandlossesupon
derecognition (equity instruments)
• Financial assets at fair value through profit or loss (FVTPL)
Financial assets at amortized cost
This category is the most relevant to the Company. The Company measures financial assets at amortised cost if both of the following conditions are met:
• Thefinancialassetisheldwithinabusinessmodelwiththeobjectivetoholdfinancialassetsinordertocollect contractual cash flows; and
• Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsof principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired.
As of December 31, 2018, the Company’s financial assets at amortized cost includes cash, accounts receivable, loan receivable and other assets, other than prepayments.
The Company does not have financial assets at FVOCI or at FVTPL.
Reclassification
When, and only when, the Company changes its business model for managing financial assets it shall reclassify all affected financial assets. If the Company reclassifies financial assets, it shall apply the reclassification prospectively from the reclassification date. The Company shall not restate any previously recognized gains, losses (including impairment gains or losses) or interest.
BAHAMAS WASTE LIMITED ANNUAL REPORT 2018
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