64
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 March 2015
(In Singapore dollars)
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.21 Financial instruments (cont’d)
(a)
Financial assets (cont’d)
(ii)
Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market are classified as loans and receivables. Subsequent to initial recognition, loans and
receivables are measured at amortised cost using the effective interest method, less impairment.
Gains and losses are recognised in profit or loss when the loans and receivables are derecognised
or impaired, and through the amortisation process.
The Group’s loans and receivables comprise cash and cash equivalents and trade and other
receivables.
De-recognition
A financial asset is de-recognised when the contractual right to receive cash flows from the asset has
expired. On de-recognition of a financial asset in its entirety, the difference between the carrying amount
and the sum of the consideration received and any cumulative gain or loss that had been recognised
directly in other comprehensive income is recognised in profit or loss.
Regular way purchase or sale of a financial asset
All regular way purchases and sales of financial assets are recognised or derecognised on the trade date
i.e., the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are
purchases or sales of financial assets that require delivery of assets within the period generally established
by regulation or convention in the marketplace concerned.
(b)
Financial liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Group becomes a party to the contractual
provisions of the financial instrument. The Group determines the classification of its financial liabilities at
initial recognition.
All financial liabilities are recognised initially at fair value and in the case of financial liabilities that are not at
fair value through profit or loss, plus directly attributable transaction costs.
Subsequent measurement
After initial recognition, financial liabilities that are not carried at fair value through profit or loss are
subsequently measured at amortised cost using the effective interest method. Gains and losses are
recognised in profit or loss when the liabilities are derecognised, and through the amortisation process.
The Group’s financial liabilities comprise trade and other payables, finance lease payable and bank
borrowings.
