AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
2.13.1.1 Loans and receivables
The Group measures loans and receivables at amortised cost if both of the following conditions are met : The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows , and
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of Financial assets at amortised cost are subsequently measured using the effective interest ( EIR ) method and are subject to impairment . Gains and losses are recognised in profit or loss when the asset is derecognised , modified or impaired .
2.13.1.2 Financial assets at fair value through other comprehensive income Upon initial recognition , the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments : Presentation and are not held for trading . The classification is determined on an instrument-by-instrument basis .
Gains and losses on these financial assets are recycled to profit or loss upon derecognition . Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established , except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset , in which case , such gains are recorded in OCI . Equity instruments designated at fair value through OCI are not subject to impairment assessment .
The Group elected to classify irrevocably its non-listed equity investments under this category .
Derecognition Financial assets are derecognised when :
The right to receive cash flow from investments expires , or The group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘ pass-through ’ arrangement ; and either :
( a ) the group has transferred substantially all the risks and rewards of the asset , or ( b ) the group has neither transferred nor retained substantially all the risks and rewards of the asset , but has transferred control of the asset .
When the group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement , it evaluates if and to what extent it has retained the risks and rewards of ownership . When it has neither transferred nor retained substantially all of the risks and rewards of the asset , it continues to recognise the transferred asset to the extent of the group ’ s continuing involvement . In that case , the group also recognises an associated liability . The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the group has retained .
2.13.2 Financial liabilities Initial recognition and measurement Financial liabilities are classified , at initial recognition , as financial liabilities at fair value through profit or loss , loans and borrowings , payables , or as derivatives designated as hedging instruments in an effective hedge , as appropriate .
All financial liabilities are recognised initially at fair value and , in the case of loans and borrowings and payables , net of directly attributable transaction costs .
The group ’ s financial liabilities include trade and other payables , loans and borrowings including bank overdrafts , and derivative financial instruments .
Agribel Holdings Limited Reg nr : 1996 / 017629 / 06 AGRIBEL ANNUAL FINANCIAL REVIEW 2021
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