Classification
The company holds the following financial instruments:
- Short term trade and other debtors and creditors
- Cash and bank balances
Recognition and Measurement
The company has chosen to apply the recognition and measurement principles in FRS102.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the asset expire or substantially all the risk and rewards of ownership are transferred to another party, or in the case of liabilities, when the company's obligations are discharged, expire or are cancelled.
Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undercounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.