Page 161 - ar2012

2. Significant accounting policies (continued)
2.7 Financial assets (continued)
(d) Subsequent measurement
Loans and receivables are subsequently carried at amortised cost using the effective interest method, less
impairment. Gains and losses are recognised in proft or loss when the loans and receivables are derecognised or
impaired, and through the amortisation process.
Available-for-sale fnancial assets are subsequently carried at fair value. Any gains or losses from changes in fair
value of the fnancial assets are recognised in other comprehensive income.
Interest and dividend income on available-for-sale fnancial assets are recognised separately in proft or loss.
(e) Impairment
The Company assesses at each balance sheet date whether there is objective evidence that a fnancial asset or
a group of fnancial assets is impaired and recognises an allowance for impairment when such evidence exists.
(i) Loans and receivables
Signifcant fnancial diffculties of the debtor, probability that the debtor will enter bankruptcy, and default or
signifcant delay in payments are objective evidence that these fnancial assets are impaired.
The carrying amount of these assets is reduced through the use of an impairment allowance account which
is calculated as the difference between the carrying amount and the present value of estimated future cash
fows, discounted at the original effective interest rate. When the asset becomes uncollectible, it is written
off against the allowance account. Subsequent recovery of amounts previously written off is recognised
against the same line item in proft or loss.
The allowance for impairment loss account is reduced through proft or loss in a subsequent period when
the amount of impairment loss decreases and the related decrease can be objectively measured. The
carrying amount of the asset previously impaired is increased to the extent that the new carrying amount
does not exceed the amortised cost had no impairment been recognised in prior periods.
Notes to the fnancial statements
For the fnancial year ended 31 March 2012
A-ITRUST ANNUAL REPORT 2011/2012 159