Financial assets
Basic financial assets, including trade and other receivables, cash and bank balances and investments, are
initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the
transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, are initially recognised at transaction
price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at
the present value of the future receipts discounted at a market rate of interest. Debt instruments are
subsequently carried at amortised cost, using the effective interest rate method.