. 91
ANNUAL
REPORT
20 1 7
THE BE ST
I N US
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
2.
SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES (CONT’D)
2.9
Financial instruments
(a)
Financial assets
Initial recognitionandmeasurement
Financial assets are recognisedwhen, andonlywhen, theGroupbecomes aparty to thecontractual
provisions of the financial instrument. TheGroupdetermines the classificationof its financial assets
at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not at fair value throughprofit or loss, directly attributable transactioncosts.
Subsequentmeasurement
The subsequentmeasurement of financial assets depends on their classification as follows:
(i)
Loansand receivables
Non-derivative financial assetswith fixedor determinablepayments that arenot quoted inan
activemarket are classified as loans and receivables. Subsequent to initial recognition, loans
and receivables are measured at amortised cost using the effective interest method, less
impairment. Gains and losses are recognised inprofit or losswhen the loans and receivables
arederecognisedor impaired, and through the amortisationprocess.
(ii)
Available-for-sale financial 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
designatedat fair value throughprofit or loss.Debt securities in thiscategoryare thosewhich
are intended tobeheld for an indefiniteperiodof timeandwhichmaybe sold in response to
needs for liquidityor in response tochanges in themarket conditions.
After initial recognition, available-for-sale financial assets are subsequentlymeasured at fair
value. Any gains or losses from changes in fair value of the financial asset are recognised in
other 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
adjustmentwhen the financial asset is derecognised.
Investments inequity instrumentswhose fair valuecannotbe reliablymeasuredaremeasuredat cost
less impairment loss.
De-recognition
A financial asset is derecognised where the contractual right to receive cash flows from the asset
has expired. Onderecognitionof a financial asset in its entirety, thedifferencebetween thecarrying
amount and the sum of the consideration received and any cumulative gain or loss that had been
recognised inother comprehensive income is recognised inprofit or loss.
