Annual Report 2016
93
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
– continued
Financial instruments
– continued
Financial assets
– continued
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Subsequent to initial recognition, loans and receivables
(including cash and cash equivalents, restricted bank deposits, trade and bills receivables, other
receivables and long-term deposits) are measured at amortised cost using the effective interest
method, less any impairment (see accounting policy on impairment loss on financial assets below).
Interest income is recognised by applying the effective interest rate, except for short-term
receivables where the recognition of interest would be immaterial.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated as available-for-
sale or are not classified as financial assets at FVTPL, loans and receivables or held-to-maturity
investments.
Dividends on available-for-sale equity instruments are recognised in profit or loss when the Group’s
right to receive the dividends is established.
Available-for-sale equity investments that do not have a quoted market price in an active market
and whose fair value cannot be reliably measured and derivatives that are linked to and must be
settled by delivery of such unquoted equity investments are measured at cost less any identified
impairment losses at the end of each reporting period (see the accounting policy in respect of
impairment loss on financial assets below).
