2 MATERIAL ACCOUNTING POLICIES (continued) 2.5 Use of estimates and judgements (continued) In addition, the Company adopted the Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2 Disclosure of Accounting Policies from 1 January 2023. The amendments require the disclosure of ‘material’, rather than significant’ accounting policies. Although the amendments did not result in any changes to the accounting policies themselves, they impacted the accounting policy information disclosed in note 2 in certain instances. Management is of the opinion that there are no critical judgements made in applying the entity’s accounting policies. 2.6 Financial instruments (a) Non-derivative financial assets Classification and measurement The Company classifies its financial assets in the following measurement categories: • Amortised cost; and • Fair value through other comprehensive income (“FVOCI”). The classification depends on the Company’s business model for managing the financial assets as well as the contractual terms of the cash flows of the financial asset. The Company reclassifies financial assets when and only when its business model for managing those assets changes. At initial recognition A financial asset is recognised if the Company becomes a party to the contractual provisions of the financial asset. At initial recognition, the Company measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. At subsequent measurement (i) Financial assets at amortised cost Financial assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in interest income using the effective interest rate method. (ii) Financial assets at FVOCI The Company has elected to recognise changes in fair value of equity securities not held for trading in OCI as these are strategic investments and the Company considers this to be more relevant. Movements in fair values of equity investments classified as FVOCI are presented as “fair value gains/losses” in OCI. Dividends from equity investments are recognised in profit or loss as dividend income. On disposal of an equity investment, any difference between the carrying amount and sales proceed amount would be recognised in other comprehensive income and transferred to retained profits along with the amount previously recognised in OCI relating to that asset. NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2023 Overview Sustainability & Governance Leadership Portfolio & Performance Financial Statements and Other Information ANNUAL REPORT 2023 331
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