3. Summary of Accounting Policies (continued)
e) Financial Assets
All financial assets are initially stated at cost, being the fair value of consideration given plus acquisition costs.
Purchases and sales of financial assets are recognised on trade date which is the date on which the Company
commits to purchase or sell the asset. Accounting policies for each category of financial assets subsequent to
initial recognition are set out below:
Loans and receivables
Trade receivables, loans, and other receivables are recorded at amortised cost using the effective interest rate
method less impairment. Impairment losses are measured as the difference between the investment’s carrying
amount and the present value of estimated future cash flows, excluding future credit losses that have not been
incurred. The cash flows are discounted at the investment’s original effective interest rate. Impairment losses are
recognised in profit or loss.
Available-for-sale financial assets
Available-for-sale investments are those financial assets that are designated as available-for-sale. When availablefor-sale financial investments are recognised initially, they are measured at fair value. Any available-for-sale
financial investments donated to the Company are recognised at fair value at the date the Company obtains
control of the asset.
After initial recognition available-for-sale financial investments are measured at fair value with gains or losses
being recognised in other comprehensive income until the investment is derecognised or until the investment is
determined to be impaired, at which time the cumulative gain or loss previously recognised in other comprehensive
income is reclassified to the Statement of Comprehensive Income.
The fair value of investments that are actively traded in organised financial markets is determined by reference
to quoted market bid prices at the close of business on the reporting date. For investments with no active
market, fair value is determined using valuation techniques. Such techniques include using recent arm’s length
market transactions, reference to the current market value of a