Debtors and creditors with no stated interest rate and receivable or payable within one year or on demand
are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss
in other operating expenses.
Basic financial instruments are recognised at amortised cost using the effective interest method, except
for investments in nonconvertible preference and non puttable ordinary shares which are measured at fair
value, with changes recognised in the profit and loss. Derivative financial instruments are intially recorded
at cost and thereafter at fair value with changes recognised in profit or loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire
or are settled, or (b) substantially all the risks and rewards or control of the ownership of the assets are
transferred to another party. Financial liabilities are derecognised when the liability is extinguished, that is
when the contractual obligation is discharged, cancelled or expires.
Directors loans are recognised at transaction price.