l) Trade and Other Receivables
Trade and other receivables are recognised initially at fair value
and subsequently measured at amortised cost, using the effective
interest rate method, less a provision for impairment. Trade
receivables are generally due for settlement between thirty
(30) and ninety (90) days from the date of recognition. They are
presented as current assets unless collection is not expected for
more than 12 months after reporting date.
Signicant nancial difculties of the debtor, probability that
the debtor will enter bankruptcy or nancial reorganisation, and
default or delinquency in payments (more than 30 days overdue)
are considered indicators that the trade receivable is impaired.
The amount of the impairment allowance is the difference
between the asset’s carrying amount and the present value of
estimated future cash ows, discounted at the original effective
interest rate. Cash ows relating to short-term receivables are not
discounted if the effect of discounting is immaterial. The amount
of the impairment loss is recognised in the prot or loss within
other expenses. When a trade receivable for which an impairment
allowance had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account.
Subsequent recoveries of amounts previously written off are
credited against other expenses in the prot or loss.
m) Trade and Other Payables
These amounts represent liabilities for goods and services
provided to the group prior to the end of the nancial year, which
remain unpaid at year end. The amounts are unsecured and are
usually paid within 60 days of recognition. They are recognised
at fair value on initial recognition and subsequently at amortised
cost, using the effective interest rate method.
All loans and borrowings are initially recognised at fair value,
net of transaction costs incurred. Borrowings are subsequently
measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount
is recognised in prot or loss over the period of the loans and
borrowings using the effective interest method.
All borrowings are classied as current liabilities unless the group
has an unconditional right to defer settlement of the liability for
at least 12 months after the end of the reporting period.
o) Fair value measurement
The group measures nancial instruments and non-nancial
assets at fair value at each reporting date. Fair value is the price
that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at
the measurement date. The fair value measurement is based on
the presumption that the transaction to sell the asset or transfer
the liability takes place either:
• In the principal market for the asset or liability, or
• In the absence of a principal market, in the most
advantageous market for the asset or liability
The principal or the most advantageous market
must be accessible by the Group.
The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in
their economic best interest. A fair value measurement of a
non-nancial asset takes into account a market participant’s
ability to generate economic benets by using the asset in its
highest and best use or by selling it to another market participant
that would use the asset in its highest and best use.
The group uses valuation techniques that are appropriate in
the circumstances and for which sufcient data are available to
measure fair value, maximising the use of relevant observable
inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or
disclosed in the nancial statements are categorised within the
fair value hierarchy, described as follows, based on the lowest level
input that is signicant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets
for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input
that is signicant to the fair value measurement is directly or
• Level 3 — Valuation techniques for which the lowest level
input that is signicant to the fair value measurement is
For assets and liabilities that are recognised in the nancial
statements on a recurring basis, the group determines whether
transfers have occurred between Levels in the hierarchy by
re-assessing categorisation (based on the lowest level input
that is signicant to the fair value measurement as a whole)
at the end of each reporting period.
For the purpose of fair value disclosures, the group has
determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained above.
p) Current and Non-Current Classication
The group presents assets and liabilities in the statement of
nancial position based on current/non-current classication.
An asset is current when it is:
• Expected to be realised or intended to be sold or consumed in
the normal operating cycle;
• Held primarily for the purpose of trading;
| Annual Report 2018
Notes to the Financial Statements