The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised 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 recognised in profit or loss.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Investments in equity instruments that are publicly traded or whose fair value can otherwise be measured reliably are classified as financial assets measured at fair value through profit or loss. These investments are initially recognised at transaction price (including transaction costs) and subsequently measured at fair value at each reporting date.
Changes in fair value are recognised in the profit and loss account in the period in which they arise.
Fair value is determined by reference to quoted market prices in an active market at the balance sheet date. Where such market prices are not available and fair value cannot be measured reliably, investments are carried at cost less impairment.
Impairment losses (and reversals of impairment losses, where applicable) are also recognised in the profit and loss account.