Financial assets and financial liabilities are recognised in the Balance Sheet when the Company
becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured
at initial recognition at transaction price. Debtors and creditors are subsequently measured at
amortised cost using the effective interest rate method. A provision is established when there is
objective evidence that the Company will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in
hand and at bank, short-term bank deposits with an original maturity of three months or less and
bank overdrafts which are an integral part of the Company’s cash management.
Financial liabilities and equity instruments issued by the Company are classified in accordance
with the substance of the contractual arrangements entered into and the definitions of a financial
liability and an equity instrument. An equity instrument is any contract that evidences a residual
interest in the assets of the Company after deducting all of its liabilities. Equity instruments
issued by the Company are recorded at the proceeds received, net of direct issue costs.