| The company has elected to apply provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Financials instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic Financial Assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs.
Basic Financial Liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business for suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. |