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Annual Report 2017
147
Notes to the
financial statements
31 march 2017
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(o)
Impairment of non-financial assets (cont’d.)
Impairment losses are recognised in profit or loss except for assets that are previously revalued where the
revaluation was taken to other comprehensive income. In this case the impairment is also recognised in other
comprehensive income up to the amount of any previous revaluation.
An assessment is made at each reporting date as to whether there is any indication that previously recognised
impairment losses may no longer exist or may have decreased. A previously recognised impairment loss is reversed
only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable
amount. That increase cannot exceed the carrying amount that would have been determined, net of depreciation,
had no impairment loss been recognised previously.
Such reversal is recognised in the profit or loss unless the asset is measured at revalued amount, in which case the
reversal is treated as a revaluation increase. Impairment loss on goodwill is not reversed in a subsequent period.
(p)
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and on hand, and demand deposits that are readily convertible
to known amount of cash and which are subject to an insignificant risk of changes in value.
(q)
Share capital
An equity instrument is any contract that evidences a residual interest in the assets of the Group and of the
Company after deducting all of its liabilities. Ordinary shares are equity instruments.
Ordinary shares are recorded at the proceeds received, net of directly attributable incremental transaction costs.
Ordinary shares are classified as equity. Dividends on ordinary shares are recognised in equity in the period in
which they are declared.
(r)
Financial assets
Financial assets are recognised in the statements of financial position when, and only when, the Group and the
Company become a party to the contractual provisions of the financial instrument.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets
not at a fair value through profit or loss, directly attributable transaction costs.
The Group and the Company categorised the classification of their financial assets at initial recognition as loans
and receivables.
Loans and receivables are classified as current assets, except for those having maturity dates later than 12 months
after the reporting date which are classified as non-current.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest
method. Gains and losses are recognised in profit or loss when the loans and receivables are derecognised or
impaired, and through the amortisation process.