The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and investments in non-putative ordinary shares.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
Other financial assets
Other financial assets are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the profit and loss account, except that investments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Debtors
Short term debtors are measured at transaction price, less any impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss account, are assessed for indicators of impairment at each reporting end date.
Other financial liabilities
Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instruments, are measured at fair value through profit and loss account.
Creditors
Short term creditors aremeasured at the transaction price.Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortized cost using the effective interest method.