The Company has chosen to adopt Sections 11 and 12 of the Financial Reporting Standard (FRS) 102 in respect of financial instruments.
Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from
fellow Group companies and preference shares that are classified as debt, 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.
Trade payables are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. Accounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method