ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
2.
Significant accounting policies (continued)
2.7 Financial Assets (Continued)
(f)
Impairment (continued)
(ii)
Available-for-sale financial assets
A significant or prolonged decline in the fair value of the investment below its cost are considered as indicators
of impairment. ‘Significant’ is to be evaluated against the original cost of the investment and ‘prolonged’
against the period in which the fair value has been below its original cost.
If an available-for-sale financial asset is impaired, an amount comprising the difference between its acquisition
cost (net of any principal repayment and amortisation) and its current fair value, less any impairment loss
previously recognised in profit or loss, is transferred from other comprehensive income and recognised in profit
or loss. Reversals of impairment losses in respect of equity instruments are not recognised in profit or loss;
increase in their fair value after impairment are recognised directly in other comprehensive income.
In the case of available-for-sale financial assets carried at cost, if there is objective evidence that an impairment
loss on the financial assets has been incurred, the amount of the loss is measured as the difference between
the asset’s carrying amount and the present value of estimated future cash flows discounted at the current
market rate of return for a similar financial asset. Such impairment losses are not reversed in subsequent periods.
2.8 Financial Liabilities
(a)
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Company becomes a party to the contractual provisions
of the financial instrument. The Company determines the classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus directly attributable transaction costs.
(b)
Subsequent measurement
After initial recognition, financial liabilities are subsequently measured at amortised cost, using the effective interest
method. Gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the
amortisation process.
(c)
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. 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 substantially modified, such an exchange or modification is treated as a derecognition of
the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is
recognised in profit or loss.
2.9 Fair Value Estimation of Financial Assets and Liabilities
The fair values of financial instruments traded in active markets (such as exchange-traded and over-the-counter securities)
are based on quoted market prices at the balance sheet date. The quoted market prices used for financial assets held by the
Company are the current bid prices; the appropriate quoted market prices for financial liabilities are the current asking prices.
The fair values of current financial assets and liabilities carried at amortised cost approximate their carrying amounts due to
their short-term nature.
