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OPULENZE CAPITAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2026
2.Accounting policies (continued)
Income from investment advisory: The Company provides investment advisory services to clients under contractual arrangements. Revenue from advisory services is recognised over the period in which the services are provided. Fees are recognised on an accruals basis as the related services are performed in accordance with the terms of the underlying contracts.
Trading income from securities transaction: Trading income comprises realised gains and losses arising from the purchase and sale of securities especially bonds and is measured as the difference between sale proceeds and acquisition cost, after deducting brokerage commission, applicable taxes and other directly attributable transaction costs. Gains /losses are recognised in profit or loss upon settlement of the related transaction.
Other operating income: Other operating income comprise of interest income and realised gains and losses arising from the treasury bills and other short-term government securities. Such income is recognised in profit or loss upon the settlement or maturity of the investment and is measures net of brokerage commission, applicable taxes and other directly attributable transaction costs.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Provisions are recognised when the company has a present obligation as a result of a past event which it is more probable that it will result in an outflow of economic benefits that can be reasonably estimated.
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