Page 160 - ar2012

2. Significant accounting policies (continued)
2.7 Financial assets (continued)
(i) Loans and receivables
Loans and receivables are non-derivative fnancial assets with fxed or determinable payments that are not
quoted in an active market. They are presented as current assets, except for those maturing more than 12
months after the balance sheet date which are presented as non-current assets. Loans and receivables are
presented as trade and other receivables and deposit on the balance sheet.
(ii) Available-for-sale fnancial assets
Available-for-sale fnancial assets include equity securities. Equity investment classifed as available-for-
sale are those which are neither classifed as held for trading nor designated at fair value through proft
or loss.
(b) Recognition and derecognition
Financial assets are recognised when, and only when, the Company becomes a party to the contractual provisions
of the fnancial instrument. Regular way purchases and sales of fnancial assets are recognised on trade-date – the
date on which the Company commits to purchase or sell the asset. Financial assets are derecognised when the
rights to receive cash fows from the fnancial assets have expired or have been transferred and the Company has
transferred substantially all risks and rewards of ownership.
On disposal of a fnancial asset, the difference between the carrying amount and sale proceeds received and any
cumulative gain or loss that had been recognised in other comprehensive income is recognised in proft or loss.
(c) Initial measurement
Financial assets are initially recognised at fair value plus transaction costs.
Notes to the fnancial statements
For the fnancial year ended 31 March 2012
158 POSITIONED FOR GROWTH