75
ANNUAL REPORT 2015/2016
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(xiii)
Cash and cash equivalents
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include cash on hand, deposits with financial institutions which are subject to an insignificant risk of
change in value, and bank overdrafts. Bank overdrafts are presented as current borrowings on the
balance sheet. For cash subjected to restriction, assessment is made on the economic substance of
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(xiv)
Derivative financial instruments
The Group holds derivative financial instruments to manage exposures to foreign exchange and
interest rate risks arising from operational, financing and investment activities. These derivative
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economic hedges. Such derivative financial instruments are initially recognised at its fair value on the
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recognised directly in profit or loss.
(xv)
Non-derivative financial liabilities
Non-derivative financial liabilities comprise borrowings, and trade and other payables. Such financial
liabilities are initially recognised at fair value (net of directly attributable transaction costs) when the
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liabilities are carried at amortised cost using the effective interest method. The Group derecognises a
financial liability when its contractual obligations are discharged, cancelled or expired.
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they are presented as non-current liabilities.
(xvi)
Offsetting of financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when the
Group has a legally enforceable right to offset the amounts and intends either to settle on a net basis
or to realise the asset and settle the liability simultaneously.
