Financial assets and liabilities are only offset in the statement of financial position when. and only when there
exists a legally enforceable right to set off the recognise amounts and the Company intends either to settle on a
net basis, or to realise the asset and settle the liability simultaneously.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except
for those financial assets classified as at fair value through the Profit and Loss Account, which are initially
measured at fair value (which is normally the transaction price excluding transaction costs), unless the
arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the
financial asset or financial liability is measured at the present value of the future payments discounted at a
market rate of interest for a similar debt instrument.
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the
financial asset expire or are settled. b) the Company transfers to another party substantially all of the risks and
rewards of ownership of the financial asset. or c) the Company. despite having retained some, but not all
significant risks and rewards of ownership. has transferred control of the asset to another party.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled
or expires