WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
96
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
– continued
Financial instruments
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Financial liabilities and equity instruments
Debt and equity instruments issued by a group entity are classified as either financial liabilities or as
equity in accordance with the substance of the contractual arrangements and the definitions of a
financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity
after deducting all of its liabilities. Equity instruments issued by the Group are recognised at the
proceeds received, net of direct issue costs.
No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the
Company’s own equity instruments.
Financial liabilities at FVTPL
Financial liabilities are classified as at FVTPL when the financial liabilities are either held for trading
or it is designated as at FVTPL on initial recognition.
A financial liability is classified as held for trading if:
• it has been incurred principally for the purpose of repurchasing in the near term; or
• on initial recognition it is a part of a portfolio of identified financial instruments that the Group
manages together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
