BAKERTECHNOLOGYLIMITED
ANNUALREPORT2013
91
Notes to the
Financial Statements
for the financial year ended 31December 2013
2.
Summaryof significantaccounting policies (cont’d)
2.10
Financial instruments (cont’d)
(a)
Financial assets (cont’d)
Subsequentmeasurement (cont’d)
(iv)
Available-for-salefinancial assets
Available-for-sale financial assets include equity and debt securities. Equity investments classified as available-for-
sale are those, which are neither classified as held for trading nor designated at fair value through profit or loss.
Debt securities in this category are thosewhich are intended tobe held for an indefinite periodof time andwhich
may be sold in response toneeds for liquidity or in response to changes in themarket conditions.
After initial recognition, available-for-sale financial assets are subsequently measured at fair value. Any gains or
losses from changes in fair value of the financial asset are recognised inother comprehensive income, except that
impairment losses, foreign exchange gains and losses onmonetary instruments and interest calculated using the
effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in
other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the
financial asset is derecognised.
Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less
impairment loss.
De-recognition
A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On
derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the
consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is
recognised in profit or loss.
Regularwaypurchaseor saleof afinancial assets
All regularwaypurchases and salesof financial assets are recognisedor derecognisedon the tradedate i.e., thedate that
theGroup commits topurchaseor sell theasset. Regularwaypurchases or sales arepurchases or sales of financial assets
that require delivery of assets within the period generally established by regulation or convention in the marketplace
concerned.
(b)
Financial liabilities
Initial recognitionandmeasurement
Financial liabilities are recognisedwhen, andonlywhen, theGroupbecomes aparty to the contractual provisions of the
financial instrument. TheGroupdetermines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus and in the case of financial liabilities not at fair value
through profit or loss, directly attributable transaction costs.
