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Integrated Report Statutory Reports Financial Statements
1-59 60-146 Consolidated

Where the Group transfers an asset, it evaluates Presentation
whether it has transferred substantially all risks Borrowings are classified as current liabilities
and rewards of ownership of the financial asset. unless the Group has an unconditional right
Where the Group has transferred substantially to defer settlement of the liability for at least 12
all risks and rewards of ownership, the financial months after the reporting period.
asset is derecognised. Where the Group has not
transferred substantially all risks and rewards of Trade and other payables are presented as current
ownership of the financial asset, the financial liabilities unless payment is not due within 12
asset is not derecognised. Where the Group has months after the reporting period.
neither transferred a financial asset nor retained
substantially all risks and rewards of ownership 2.15.4 Derivatives and hedging activities
of the financial asset, the financial asset is In the ordinary course of business, the Group
derecognised if the Group has not retained control uses certain derivative financial instruments
of the financial asset. Where the Group retains to reduce business risks which arise from its
control of the financial asset, the asset is continued exposure to foreign exchange, fuel and interest
to be recognised to the extent of continuing rate fluctuations associated with borrowings (cash
involvement in the financial asset. flow hedges). When the Group opts to undertake
hedge accounting, the Group documents,
2.15.2 Debt and equity instruments
at the inception of the hedging transaction,
Debt and equity instruments are classified as either the economic relationship between hedging
financial liabilities or as equity in accordance with instruments and hedged items including whether
the substance of the contractual arrangement. the hedging instrument is expected to offset
An equity instrument is any contract that changes in cash flows or fair values of hedged
evidences a residual interest in the assets of an items. The Group documents its risk management
entity after deducting all of its liabilities. Equity objective and strategy for undertaking various
instruments issued by the Group are recorded at hedge transactions at the inception of each hedge
the proceeds received, net of direct issue costs. relationship.
Derivatives are initially recognised at fair value on
2.15.3 Financial liabilities
the date the derivative contract is entered into and
The Group’s financial liabilities comprise are subsequently remeasured to their fair value at
borrowings, trade payables and other liabilities. the end of each reporting period. The accounting
These are initially measured at fair value, net of for subsequent changes in fair value depends on
transaction costs, and are subsequently measured whether the derivative is designated as a hedging
at amortised cost using the EIR method. The EIR instrument, and if so, the nature of the item
is a method of calculating the amortised cost of a being hedged and the type of hedge relationship
financial liability and of allocating interest expense designated.
over the relevant period at effective interest rate.
The effective interest rate is the rate that exactly Cash flow hedges that qualify for hedge
discounts estimated future cash payments accounting
through the expected life of the financial liability, The effective portion of changes in the fair value
or, where appropriate, a shorter period. of derivatives that are designated and qualify
as cash flow hedges, is recognised through OCI
Changes to the carrying amount of a financial and as cash flow hedging reserve within equity,
liability as a result of renegotiation or modification limited to the cumulative change in fair value of
of terms that do not result in derecognition of the the hedged item on a present value basis from the
financial liability, is recognised in the Consolidated inception of the hedge. The gain or loss relating to
Statement of Profit and Loss.
the ineffective portion is recognised immediately
Derecognition of financial liabilities in the Consolidated Statement of Profit and Loss.
The Group derecognises financial liabilities when, Amounts accumulated in equity are reclassified to
and only when, its obligations are discharged, the Consolidated Statement of Profit and Loss on
cancelled or they expire. settlement. When the hedged forecast transaction

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