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CORDLIFE GROUP LIMITED
| ANNUAL REPORT 2015
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 30 JUNE 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
2.13 Financial instruments
(a)
Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Group becomes a party to the
contractual provisions of the financial instrument. The Group determines the classification of
its financial assets at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case
of financial assets not at fair value through profit or loss, directly attributable transaction costs.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as follows:
(i)
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading
and financial asset designated at fair value through profit or loss.
Financial assets held for trading
Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term.
Financial asset designated at fair value through profit or loss
Financial asset designated at fair value through profit or loss includes investment in
quoted equity investment. The Group designates financial assets at fair value through
profit or loss when doing so results in more relevant information, because the financial
assets are managed and its performance is evaluated on a fair value basis, in accordance
with a documented risk management or investment strategy, and information about
the financial assets is provided internally on that basis to the Group’s key management
personnel, for example the Group’s board of directors and Chief Executive Officer.
Subsequent to initial recognition, financial asset designated at fair value through profit
or loss is measured at fair value. Any gains or losses arising from changes in fair value of
the financial assets are recognised in profit or loss. Net gains or net losses on financial
asset designated at fair value through profit or loss include exchange differences, interest
and dividend income.
