Financial assets and financial liabilities are measured at transaction price initially, plus, in the
case of a financial asset or financial liability not at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.
At the end of each reporting period, financial instruments are measured as follows, without any
deduction for transaction costs the entity may incur on sale or other disposal:
Debt instruments that meet the conditions in paragraph 11.8(b) of FRS 102 are measured at
amortised cost using the effective interest method, except where the arrangement constitutes a
financing transaction. In this case the debt instrument is measured at the present value of the
future payments discounted at a market rate of interest for a similar debt
Financial instruments held by the Company are classified as follows:
- Financial assets such as cash and receivables are classified as loans and receivables and
held at amortised cost using the effective interest method,
- Financial liabilities such as trade creditors are held at amortised cost using the effective interest method.