Page 23 - Bahamas Waste inside pages

NOTES TO FINANCIAL STATEMENTS
(Expressed in Bahamian Dollars)
December 31, 2018
3. SuMMARY OF SIgNIFICANT ACCOuNTINg pOLICIES (CONTINuED)
Financial Instruments – initial recognition, subsequent measurement, and impairment applicable prior to January 1,
2018
An impairment loss in respect of a financial asset measured at amortized cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate.
Financial assets measured at amortized cost are tested for impairment on an individual basis and impairment losses are reflected in an allowance account against receivables and are recognized in the statement of comprehensive income. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized, and is reversed through profit or loss.
Financial Liabilities
Initial Recognition, Classification and Measurement
Financial liabilities are classified, at initial recognition, as “financial liabilities at fair value through profit or loss” or “other financial liabilities”.
The other financial liabilities measured at amortized cost are recognized initially at fair value less directly attributable transaction costs. In the case of financial liabilities at fair value through profit or loss, directly attributable costs are recognized in profit or loss as incurred.
Issued financial instruments or their components, which are not designated as at FVPL are classified as other financial liabilities where the substance of the contractual arrangement results in the Company having an obligation either to deliver cash or another financial asset to the holder, or to satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of own equity shares.
Subsequent Measurement
After initial measurement, other financial liabilities are subsequently measured at amortized cost using the effective interest method. Amortized cost is calculated by taking into account any discount or premium on the issue and fees that are integral parts of the effective interest rate.
As of December 31, 2017, the Company’s other financial liabilities measure at amortize cost include accounts payable and accrued liabilities, and security deposits. The Company has not designated any financial liability as “fair value through profit or loss”.
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BAHAMAS WASTE LIMITED ANNUAL REPORT 2018