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T H E S T R E N G T H O F O U R B R A N D S
2 .
Summa r y o f S i gn i f i c an t ac coun t i ng Po l i c i e s ( Con t ’ d )
Financial assets (Cont’d)
2.
Loans and receivables:
Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Assets that are for sale immediately or in the near term are
not classified in this category. These assets are carried at amortised costs using the effective interest method
(except that short-duration receivables with no stated interest rate are normally measured at original invoice
amount unless the effect of imputing interest would be significant) minus any reduction (directly or through
the use of an allowance account) for impairment or uncollectibility. Impairment charges are provided only
when there is objective evidence that an impairment loss has been incurred as a result of one or more events
that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an
impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably
estimated. The methodology ensures that an impairment loss is not recognised on the initial recognition of an
asset. Losses expected as a result of future events, no matter how likely, are not recognised. For impairment,
the carrying amount of the asset is reduced through use of an allowance account. The amount of the loss is
recognised in profit or loss. An impairment loss is reversed if the reversal can be related objectively to an event
occurring after the impairment loss was recognised. Typically the trade and other receivables are classified in
this category.
3.
Held-to-maturity financial assets
:
As at end of the reporting year date there were no financial assets classified
in this category.
4.
Available-for-sale financial assets
:
As at end of the reporting year date there were no financial assets classified
in this category.
Cash and Cash Equivalents
Cash and cash equivalents include bank and cash balances, on demand deposits and any highly liquid debt instruments
purchased with an original maturity of three months or less. For the statement of cash flows the item includes cash
and cash equivalents less cash subject to restriction and bank overdrafts payable on demand that form an integral part
of cash management.
