GOING
THE DISTANCE
EUROSPORTS
GLOBAL
.68
NOT E S TO T HE
F I NANC I A L S TAT EMEN T S
YEAR ENDED
31 MARCH, 2016
2.
SIGNIFICANT ACCOUNTING POLICIES AND OTHER EXPLANATORY INFORMATION (CONT’D)
2A.
Significant accounting policies (cont’d)
Financial assets (cont’d)
Initial recognition, measurement and derecognition: (cont’d)
Irrespective of the legal form of the transactions performed, financial assets are derecognised when they pass the
“substance over form” based on the derecognition test prescribed by FRS 39 relating to the transfer of risks and
rewards of ownership and the transfer of control. Financial assets and financial liabilities are offset and the net
amount is reported in the statement of financial position if there is currently a legally enforceable right to offset the
recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
Subsequent measurement:
Subsequent measurement based on the classification of the financial assets in one of the following categories under
FRS 39 is as follows:
1.
Financial assets at fair value through profit or loss: As at end of the reporting year date there were no financial
assets classified in this category.
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.
