The Company only enters into basic financial instrument transactions that result in the recognition offinancial assets and liabilities like trade and other debtors and creditors, loans from banks and other thirdparties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans andother accounts receivable and payable, are initially measured at present value of the future cash flows andsubsequently at amortised cost using the effective interest method. Debt instruments that are payable orreceivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, atthe undiscounted amount of the cash or other consideration expected to be paid or received. However, ifthe arrangements of a short-term instrument constitute a financing transaction, like the payment of a tradedebt deferred beyond normal business terms or in case of an out-right short-term loan that is not at marketrate, the financial asset or liability is measured, initially at the present value of future cash flows discounted ata market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifiesas a loan from a director in the case of a small company, or a public benefit entity concessionary loan.