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and Loss. When the financial asset is derecognised, Where the Group has transferred substantially
the cumulative gain or loss previously recognised in all risks and rewards of ownership, the financial
OCI is reclassified from equity to the Consolidated asset is derecognised. Where the Group has not
Statement of Profit and Loss. Interest income from transferred substantially all risks and rewards of
these financial assets is included in other income ownership of the financial asset, the financial
using the EIR. asset is not derecognised. Where the Group has
neither transferred a financial asset nor retained
ʀ Fair value through profit or loss (‘FVTPL’)
substantially all risks and rewards of ownership
Assets that do not meet the criteria for amortised of the financial asset, the financial asset is
cost or FVTOCI are measured at FVTPL. A gain or derecognised if the Group has not retained control
loss on a debt investment that is subsequently of the financial asset. Where the Group retains
measured at FVTPL (unhedged) is recognised net control of the financial asset, the asset is continued
in the Consolidated Statement of Profit and Loss in to be recognised to the extent of continuing
the period in which it arises. Interest income from involvement in the financial asset.
these financial assets is included in other income. Integrated Report
2.15.2 Debt and equity instruments
Equity instruments
Debt and equity instruments are classified as either
The Group subsequently measures all equity financial liabilities or as equity in accordance with the
investments at fair value. Where the Group’s substance of the contractual arrangement.
management has elected to present fair value gains
An equity instrument is any contract that evidences
and losses on equity investments in OCI, there is no
a residual interest in the assets of an entity after
subsequent reclassification of fair value gains and
deducting all of its liabilities. Equity instruments issued
losses to the Consolidated Statement of Profit and
by the Group are recorded at the proceeds received,
Loss. When the financial asset is derecognised, the
net of direct issue costs.
cumulative gain or loss previously recognised in
OCI is reclassified to equity. Dividends from such 2.15.3 Financial liabilities
investments are recognised in the Consolidated
The Group’s financial liabilities comprise borrowings,
Statement of Profit and Loss within other income
trade payables and other liabilities. These are initially
when the Group’s right to receive payments is
measured at fair value, net of transaction costs, and Statutory Reports
established. Impairment losses (and reversal
are subsequently measured at amortised cost using
of impairment losses) on equity investments
the EIR method. The EIR is a method of calculating the
measured at FVTOCI are not reported separately
amortised cost of a financial liability and of allocating
from other changes in fair value.
interest expense over the relevant period at effective
Cash and cash equivalents interest rate. The effective interest rate is the rate that
exactly discounts estimated future cash payments
The Group considers all highly liquid financial
through the expected life of the financial liability, or,
instruments, which are readily convertible into
where appropriate, a shorter period.
known amounts of cash, that are subject to an
insignificant risk of change in value with a maturity Changes to the carrying amount of a financial liability
within three months or less from the date of as a result of renegotiation or modification of terms
purchase, to be cash equivalents. Cash and cash that do not result in derecognition of the financial
equivalents consist of balances with banks which liability, is recognised in the Consolidated Statement
are unrestricted for withdrawal and usage. of Profit and Loss.
Derecognition of financial assets Derecognition of financial liabilities Financial Statements
A financial asset is derecognised only when the The Group derecognises financial liabilities when, and
Group only when, its obligations are discharged, cancelled or
they expire.
ʀ has transferred the rights to receive cash flows
from the financial asset; or Presentation
ʀ retains the contractual rights to receive the Borrowings are classified as current liabilities unless the
cash flows of the financial asset, but assumes Group has an unconditional right to defer settlement
a contractual obligation to pay the cash flows of the liability for at least 12 months after the reporting
to one or more recipients. period.
Where the Group transfers an asset, it evaluates Trade and other payables are presented as current
whether it has transferred substantially all risks liabilities unless payment is not due within
and rewards of ownership of the financial asset. 12 months after the reporting period.

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