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2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
NOTES TO FINANCIAL STATEMENTS
March 31, 2013
FINANCIAL INSTRUMENTS (Cont’d)
Financial assets (Cont’d)
Available-for-sale financial assets
Certain shares and debt securities held by the Group are classified as being available for sale and are stated at fair value.
Fair value is determined in the manner described in Note 4. Gains and losses arising from changes in fair value are recognised
in other comprehensive income with the exception of impairment losses, interest calculated using the effective interest
method and foreign exchange gains and losses on monetary assets which are recognised directly in profit or loss. Where
the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously recognised in other
comprehensive income and accumulated in fair value reserve is reclassified to profit or loss. Dividends on available-for-sale
equity instruments are recognised in profit or loss when the Group’s right to receive payments is established. The fair value
of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign currency and translated
at the spot rate at end of the reporting period. The change in fair value attributable to translation differences that result
from a change in amortised cost of the asset is recognised in profit or loss, and other changes are recognised in other
comprehensive income.
Certain available-for-sale unquoted equity investments are initially recognised at fair value plus directly attributable
acquisition costs and are subsequently measured at cost less impairment loss as fair values cannot be reliably measured.
Loans and receivables
Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an
active market are classified as “loans and receivables”. Loans and receivables are measured at amortised cost using the
effective interest method less impairment. Interest is recognised by applying the effective interest rate method, except for
short-term receivables when the recognition of interest would be immaterial.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired
where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the
financial asset, the estimated future cash flows of the investment have been impacted.
