Financial assets
Basic financial assets are initially recognised at transaction price. Such assets are subsequently carried at amortised cost using the undiscounted of cash or other consideration expected to be received and at the end of each reporting period assessed for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised the Statement Comprehensive Income.
Financial liabilities
Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities are derecognised when the extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Offsetting
Financial assets and liabilities are offset, and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amounts intention to settle on a net basis or to realise the asset and settle the liability simultaneously.