GROUP ACCOUNTING POLICIES (continued) 4. Financial instruments 4.1 General The Group initially recognises financial assets and liabilities (including assets and liabilities designated at fair value through profit or loss), when the Group becomes a party to the contractual provisions of the instrument. Financial instruments recognised in the Consolidated Statement of Financial Position include financial assets through profit or loss, other receivables, cash and cash equivalents, investment contract liabilities, borrowings, accruals, thirdparty liabilities arising on consolidation of unit trusts, and other payables. 4.2 Financial assets The Group has the following financial asset categories: financial assets at fair value through profit or loss, as well as financial assets at amortised cost. All financial assets are initially measured at fair value including, for financial assets not at fair value through profit or loss, any directly attributable transaction costs. All financial asset purchases and sales are initially recognised using trade date accounting. Financial instruments at fair value through profit or loss A financial asset is placed into this category if so designated by management upon initial recognition. Financial assets classified as fair value through profit or loss, consist of local and foreign equities, money market instruments, government bonds, corporate bonds and unit trusts. Subsequent to initial recognition, these financial assets are accounted for at fair value. Fair value gains and losses arising from changes in fair value are included in the Consolidated Statement of Profit or Loss and other Comprehensive Income as net fair value gains on financial assets in the period in which these arise. Equity fair values are based on regulated exchange quoted bid prices at the close of business on the last trading day on or before the reporting date. Bond fair values are based on regulated exchange quoted closing prices at the close of business on the last trading day, on or before the reporting date. Unit trust fair values are based on the net asset value (price) on the reporting date. Financial assets at amortised cost Other receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Other receivables are initially measured at fair value and subsequently at amortised cost using the effective interest rate method less impairment adjustments (accounting policy note 14). 4.3 Financial liabilities A financial liability is any liability that is a contractual obligation to deliver cash or another financial asset to another entity. Financial liabilities include other payables, borrowings categorised as financial liabilities at amortised cost, investment contract liabilities and liabilities to outside unit trust holders (arising on consolidation of unit trusts, accounting policy note 3), designated on initial recognition as measured at fair value through profit and loss. 110 Group Accounting Policies
RkJQdWJsaXNoZXIy MTY2ODY3Ng==