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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)
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire,
or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control
the transferred asset, the Group recognises its retained interest in the asset and an associated liability for amounts it
may have to pay. If the Group retains substantially all the risks and rewards of ownership of a transferred financial
asset, the Group continues to recognise the financial asset and also recognises a collateralised borrowing for the
proceeds received.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the
contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all
of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Trade and other payables
Trade and other payables are initially recognised at fair value, net of transaction costs, and are subsequently measured
at amortised cost, using the effective interest method, with interest expense recognised on an effective yield basis
except for short-term payables when the recognition of interest would be immaterial.
Derecognition of financial liabilities
The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged, cancelled or expired.
