FINANCIALS 2019
Financial assets designated at fair value through
other comprehensive income (FVTOCI)
Debt instruments are subsequently measured at
fair value through profit or loss if the financial asset
is held within a business model whose objective is
achieved by both collecting contractual cash flows
and selling the financial assets and the contractual
terms of the financial asset give rise on specified dates
to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
By default, all other financial assets are measured
subsequently at fair value through profit or loss
(FVTPL).
Despite the foregoing, the Company may make
the following irrevocable election / designation at
initial recognition of a financial asset:
1) The Company may irrevocably elect to present
subsequent changes in fair value of an equity
investment in other comprehensive income if
certain criteria are met; and
2) The Company may irrevocably designate a
debt investment that meets the amortised
cost or FVTOCI criteria as measured at FVTPL
if doing so eliminates or significantly reduces
an accounting mismatch.
Amortised cost and effective interest method
The effective interest method is a method
of calculating the amortised cost of a debt
instrument and of allocating interest income over
the relevant period. Interest income is recognised
in profit or loss and is included in the “finance
income - interest income” line item.
The amortised cost of a financial asset is the
amount at which the financial asset is measured
at initial recognition minus the principal
repayments, plus the cumulative amortisation
using the effective interest method of any
difference between that initial amount and the
maturity amount, adjusted for any loss allowance.
The gross carrying amount of a financial asset
is the amortised cost of a financial asset before
adjusting for any loss allowance.
Trade and other receivables
Trade and other receivables are initially recognised at
fair value and subsequently measured at amortised
cost using the effective interest method, less any
allowance for expected credit losses. Trade receivables
are generally due for settlement within 30 days.
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