The company only enters into basic financial instruments transactions that result in the recognition of financial assets
and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties.
Financial assets that are measured at cost and amortized cost are assessed at the end of each reporting period for
objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognized in
profit or loss.
For financial assets measured at amortized cost, the impairment loss is measured as the difference between an asset's
carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest
rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current
effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an
asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would
receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there
is an enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or to realise
the asset and settle the liability.