Financial assets at fair value through prot or loss
Financial assets at fair value through prot or loss are either:
i) held for trading, where they are acquired for the purpose of
selling in the short-term with an intention of making a prot; or
ii) designated as such upon initial recognition, where they are
managed on a fair value basis or to eliminate or signicantly
reduce an accounting mismatch. Except for effective hedging
instruments, derivatives are also categorised as fair value
through the statement of prot or loss. Fair value movements are
recognised in the prot or loss.
Available-for-sale nancial assets
Available-for-sale nancial assets are non-derivative nancial
assets, principally equity securities that are either designated as
available-for-sale or not classied as any other category. After
initial recognition, fair value movements are recognised in other
comprehensive income through the available-for-sale reserve
in equity. Cumulative gain or loss previously reported in the
available-for-sale reserve is recognised in the prot or loss when
the asset is derecognised or impaired.
Impairment of nancial assets
The group assesses at the end of each reporting period whether
there is any objective evidence that a nancial asset or group
of nancial assets is impaired. Objective evidence includes
signicant nancial difculty of the issuer or obligor; a breach of
contract such as default or delinquency in payments; the lender
granting to a borrower concessions due to economic or legal
reasons that the lender would not otherwise do; it becomes
probable that the borrower will enter bankruptcy or other
nancial reorganisation; the disappearance of an active market
for the nancial asset; or observable data indicating that there is
a measurable decrease in estimated future cash ows.The amount
of the impairment allowance for nancial assets carried at cost
is the difference between the asset’s carrying amount and the
present value of estimated future cash ows, discounted at the
current market rate of return for similar nancial assets.
De-recognition
Financial assets are derecognised where the contractual rights
to receipt of cash ows expires or the asset is transferred to
another party whereby the entity no longer has any signicant
continuing involvement in the risks and benets associated with
the asset. Financial liabilities are derecognised where the related
obligations are discharged, cancelled or expired. The difference
between the carrying value of the nancial liability extinguished
or transferred to another party and the fair value of consideration
paid, including the transfer of non-cash assets or liabilities
assumed, is recognised in prot or loss.
Available-for-sale nancial assets are considered impaired when
there has been a signicant or prolonged decline in value below
initial cost. Subsequent increments in value are recognised in other
comprehensive income through the available-for-sale reserve.
j) Impairment of Non-Financial Assets
At each reporting date, the Group reviews the carrying values of
its tangible and intangible assets to determine whether there is
any indication that those assets have been impaired. If such an
indication exists, the recoverable amount of the asset, being the
higher of the asset’s fair value less costs to sell and value in use, is
compared to the asset’s carrying value. Any excess of the asset’s
carrying value over its recoverable amount is expensed to the
statement of prot or loss.
Where it is not possible to estimate the recoverable amount of an
individual asset, the Group estimates the recoverable amount of
the cash-generating unit to which the asset belongs.
When a reasonable and consistent basis of allocation can be
identied, corporate assets are also allocated to individual cash-
generating units, or otherwise they are allocated to the smallest
group of cash-generating units for which a reasonable and
consistent allocation basis can be identied. Intangible assets
with indenite useful lives and intangible assets not yet available
for use are tested for impairment at least annually, and whenever
there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs of
disposal and value in use. In assessing value in use, the estimated
future cash ows are discounted to their present value using a
pre-tax discount rate that reects current market assessments
of the time value of money and the risks specic to the asset for
which the estimates of future cash ows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit)
is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to
its recoverable amount. An impairment loss is recognised
immediately in prot or loss, unless the relevant asset is carried
at a revalued amount, in which case the impairment loss is treated
as a revaluation decrease (refer 2i)). When an impairment loss
subsequently reverses, the carrying amount of the asset (or
cash generating unit) is increased to the revised estimate of its
recoverable amount, but so that the increased carrying amount
does not exceed the carrying amount that would have been
determined had no impairment loss been recognised for the asset (or
cash-generating unit) in prior years. A reversal of an impairment loss
is recognised immediately in prot or loss, unless the relevant asset
is carried at a revalued amount, in which case the reversal of the
impairment loss is treated as a revaluation increase (refer 2i)).
k) Cash and Cash Equivalents
For the purpose of presentation in the statement of cash ows,
cash and cash equivalents includes cash on hand, deposits held
at call with nancial institutions, other short-term, highly liquid
investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which
are subject to an insignicant risk of changes in value, and bank
overdrafts. Bank overdrafts are shown within borrowings in
current liabilities in the statement of nancial position.
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Notes to the Financial Statements