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)
2.13 Inventories
Inventories are carried at the lower of cost and net realisable value. Cost is determined on weighted average basis and
includes all costs in bringing the inventories to their present location and condition. Net realisable value is the estimated
selling price less the estimated costs of completion and applicable variable selling expenses.
2.14 Financial Instruments
(a)
Non-derivative financial assets
Financial assets are recognised when, and only when, the Group becomes a party to the contractual provisions of
the financial instrument.
When the financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets
not at fair value through profit or loss, directly attributable transaction costs.
A financial asset is derecognised where the contractual right to receive cash flows from the asset has expired. On
derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the
consideration received and any cumulative gain or loss that had been recognised in other comprehensive income is
recognised in profit or loss.
The Group classifies non-derivative financial assets into the following categories:
(i)
Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market
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 in profit
or loss when the loans and receivables are derecognised or impaired, and through the amortisation process.
Cash and cash equivalents include cash on hand and deposits with financial institutions which are subject to
an insignificant risk of change in value.
(ii)
Available-for-sale financial assets
Available-for-sale financial assets include investments in equity and debt instruments. Equity instruments
classified as available-for-sale are those which are neither classified as held for trading nor designated at fair
value through profit or loss. Debt instruments in this category are those which are intended to be held for an
indefinite period of time.
After initial recognition, available-for-sale financial assets are subsequently measured at fair value. Any gains or
losses from changes in fair value of the financial assets are recognised in other comprehensive income, except
that impairment loss, foreign exchange gains and losses on monetary 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 unitholders’ funds to profit or loss as a reclassification
adjustment when the financial asset is derecognised.
Investment in equity instruments whose fair value cannot be reliably measured are measured at cost less
impairment loss.
