Page 180 - Index

Consolidated
assets is depreciated using the straight-line method
from the commencement date over the shorter of lease
term or useful life of right of use asset. The estimated
useful lives of right of use assets are determined on the
same basis as those of property, plant and equipment.
Right of use assets are tested for impairment whenever
there is any indication that their carrying amounts
may not be recoverable. Impairment loss, if any, is
recognised in the statement of profit and loss.
The Group measures the lease liability at the present
value of the lease payments that are not paid at the
commencement date of the lease. The lease payments
are discounted using the interest rate implicit in the
lease, if that rate can be readily determined. If that
rate cannot be readily determined, the Group uses
incremental borrowing rate.
The lease payments shall include fixed payments,
variable lease payments based on an index or rate,
residual value guarantees, exercise price of a purchase
option where the Group is reasonably certain to
exercise that option and payments of penalties for
terminating the lease, if the lease term reflects the
lessee exercising an option to terminate the lease.
The lease liability is subsequently remeasured by
increasing the carrying amount to reflect interest on
the lease liability, reducing the carrying amount to
reflect the lease payments made and remeasuring the
carrying amount to reflect any reassessment or lease
modifications or to reflect revised in-substance fixed
lease payments.
Lease liability and right of use assets have been
presented separately in the Balance Sheet and lease
payments are classified as cash used in financing
activities in the statement of cash flows.
2.13 Share capital
Ordinary shares are classified as equity. Incremental
costs directly attributable to the issue of new shares
or options are shown in equity as a deduction, net of
tax, from the proceeds.
2.14 Fair value of financial instruments
In determining the fair value of the financial
instruments the Group uses variety of methods and
assumptions that are based on market conditions and
risk existing at each reporting date. The method used to
determine the fair value includes discounted cash flow
analysis, available quoted market prices and dealer
quotes. All method of assessing fair value results in
general approximation of value and such value may
never actually be realised. For all other financial
instruments the carrying amounts approximates fair
value due to short term maturity of those instruments.
2.15 Financial instruments
Initial recognition
The Group recognises financial assets and financial
liabilities when it becomes a party to the contractual
provisions of the instrument. All financial assets
and liabilities are recognised at fair value on initial
recognition, except for trade receivables which are
initially measured at transaction price. Transaction
costs that are directly attributable to the acquisition
or issue of financial assets and liabilities, which are not
at fair value through profit or loss, are added to the fair
value on initial recognition. Regular way purchase and
sale of financial assets are accounted for at trade date.
Subsequent measurement
a) Non-derivative financial instruments
(i) Financial assets carried at amortised cost
A financial asset is subsequently measured at
amortised cost if it is held with in a business
model whose objective is to hold the asset in
order to collect contractual cash flows 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. For
financial assets maturing within one year
from the balance sheet date, the carrying
amounts approximate the fair value due to
the short maturity of these instruments.
(ii) Financial assets at fair value through other
comprehensive income (FVTOCI)
A financial asset is subsequently measured
at FVTOCI if it is held within a business
model whose objective is achieved by both
collecting contractual cash flows and selling
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.
If the Group decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding
178 Annual Report 2024