AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
Interest income other than revenue Refer to the " Interest income " accounting policy above . Interest income other than revenue relates to interest income earned by the group which does not arise in the course of the group ' s ordinary activities .
Income from commodity trading Milldoor commodity sales
The customer has the ability to direct the use of , and obtain substantially all the remaining benefits , from the commodity from the date of delivery at the premises specified by the purchaser . At this stage the purchaser can determine whether and when to sell or store the commodities . This service condition includes the delivery of the grain and does not constitute a separate revenue stream .
Income is recognised at the time of delivery .
Ex-silo commodity sales
The purchaser has the ability to direct the use of , and obtain substantially all the remaining benefits , from the commodity from the date of withdrawal . At this stage the purchaser can determine whether and when to sell or store the commodities .
Income is recognised at the time of withdrawal .
2.13 Financial instruments
2.13.1 Financial assets : Initial recognition and measurement Financial assets are classified , at initial recognition , as subsequently measured at amortised cost , fair value through other comprehensive income ( OCI ), and fair value through profit or loss .
The classification of financial assets at initial recognition depends on the financial asset ’ s contractual cash flow characteristics and the Group ’ s business model for managing them . With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient , the Group initially measures a financial asset at its fair value plus , in the case of a financial asset not at fair value through profit or loss , transaction costs . Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price determined under IFRS 15 .
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI , it needs to give rise to cash flows that are ‘ solely payments of principal and interest ( SPPI )’ on the principal amount outstanding . This assessment is referred to as the SPPI test and is performed at an instrument level .
The Group ’ s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows . The business model determines whether cash flows will result from collecting contractual cash flows , selling the financial assets , or both .
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place ( regular way trades ) are recognised on the trade date , i . e ., the date that the Group commits to purchase or sell the asset .
Subsequent measurement For purposes of subsequent measurement , financial assets are classified in four categories :
Financial assets at amortised cost ( debt instruments ); Financial assets at fair value through OCI with recycling of cumulative gains and losses ( debt instruments ); Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition ( equity instruments ); and Financial assets at fair value through profit or loss .
80 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06