2.
Significant accounting policies (continued)
2.14 Cash and cash equivalents
For the purpose of presentation in the statement of cash flow, cash and cash equivalents comprise cash at bank with
financial institutions which are subject to an insignificant risk of change in value, but exclude balances which are subjected
to restriction.
2.15 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares are
deducted against share capital.
2.16 Dividends
Interim dividends are recorded in the financial year in which the dividends are declared payable. Final dividends are
recorded in the financial year in which the dividends are approved by the shareholders.
2.17 Government grants
Government grants are recognised when there is reasonable assurance that the grant will be received and all attaching
conditions will be complied with.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the Company recognises
as expenses the related costs for which the grants are intended to compensate. Grants are presented in profit or loss
under ¡°other income¡±.
2.18 Transfers between levels of the fair value hierarchy
Transfers between levels of the fair value hierarchy are deemed to have occurred on the date of the event or change in
circumstances that caused the transfers.
3.
Critical accounting estimates, assumptions and judgements
The preparation of the Company¡¯s financial statements requires Management to make judgements, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at
the end of each reporting period. Uncertainty about these assumptions and estimates could result in outcomes that require
a material adjustment to the carrying amount of the asset or liability affected in the future periods.
Critical judgements in applying the entity¡¯s accounting policies
In the process of applying the Company¡¯s accounting policies, Management has made judgement relating to impairment
of available-for-sale financial assets, apart from those involving estimations, which have the most significant effect on the
amounts recognised in the financial statements.
The Company records impairment charges on available-for-sale financial assets when there has been a significant or
prolonged decline in the fair value below their cost. The determination of what is ¡°significant¡± or ¡°prolonged¡± requires
judgement. The Company evaluates, among other factors, the duration and extent to which the fair value of a financial
asset is below its cost, the financial health of and near-term business outlook for the investee, including factors such as
industry and sector performance, changes in technology and operational and financing cash flow. Management is of the
view that the factors considered for purpose of determining impairment of available-for-sale financial assets are appropriate
and meet the requirements of FRS 39.
.173
ASCENDAS india trust ANNUAL REPORT
2015/2016
