Page 251 - Index

Mission-Critical Decisions, Made with Confidence.
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.
2.9 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 proceeds.
2.10 Fair value of financial instruments
In determining the fair value of the financial
instruments the Company 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 accessing 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.
2.11 Financial instruments
Initial recognition
The Company 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 Company decides to classify an
equity instrument as at FVOCI, then all
fair value changes on the instrument,
excluding dividends, are recognized in the
other comprehensive income (OCI). There
is no recycling of the amounts from OCI to
profit and loss, even on sale of investment.
However, the Company may transfer the
cumulative gain or loss within equity.
(iii) Financial assets at fair value through profit
or loss (FVTPL)
A financial asset which is not classified in any
of the above categories are subsequently fair
valued through profit or loss.
(iv) Financial liabilities
Financial liabilities are subsequently carried
at amortised cost using the effective interest
method, except for contingent consideration
recognised in a business combination
which is subsequently measured at FVTPL.
For trade and other payables maturing
within one year from the balance sheet
date, the carrying amounts approximate
the fair value due to the short maturity of
these instruments.
b) Derivative financial instruments
The Company uses derivative financial
instruments i.e. foreign exchange forward and
options contracts to manage its exposure to
foreign exchange risks. Such derivative financial
instruments are initially recognised at fair value
Annual Report 2024
249
Financial Statements