. 9 2
NOTESTOTHE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017
BAKER
TECHNOLOGY
L IMI TED
THE BE ST
I N US
2.
SUMMARYOF SIGNIFICANTACCOUNTINGPOLICIES (CONT’D)
2.9
Financial instruments (cont’d)
(b)
Financial liabilities
Initial recognitionandmeasurement
Financial liabilities are recognised when, and only when, the Group becomes a party to the
contractual provisions of the financial instrument. The Group determines the classification of its
financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value, plus, in thecaseof financial liabilities not at
fair value throughprofit or loss, directly attributable transactioncosts.
Subsequentmeasurement
After initial recognition, financial liabilities that are not carried at fair value through profit or loss
are subsequentlymeasured at amortised cost using the effective interestmethod. Gains and losses
are recognised in profit or loss when the liabilities are derecognised, and through the amortisation
process.
De-recognition
A financial liability is derecognisedwhen theobligationunder the liability is dischargedor cancelled
or expired. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantiallymodified, such an
exchangeormodification is treated as aderecognitionof theoriginal liability and the recognitionof
anew liability, and thedifference in the respectivecarrying amounts is recognised inprofit or loss.
