79
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
(Continued)
(a)
Financial assets
(Continued)
Subsequent measurement
(Continued)
(ii)
Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market are classified as loans and receivables. Subsequent to initial recognition,
loans and receivables are measured at amortised cost using the effective interest method,
less impairment. Gains and losses are recognised in profit or loss when the loans and
receivables are derecognised or impaired, and through the amortisation process.
Derecognition
A financial asset is derecognised where the contractual right to receive cash flows from the
asset has expired. On derecognition of a financial asset in its entirety, the difference between
the carrying amount and the sum of the consideration received and any cumulative gain or
loss that had been recognised in other comprehensive income is recognised in profit or loss.
Regular way purchase or sale of a financial asset
All regular way purchases and sales of financial assets are recognised or derecognised on the
trade date i.e., the date that the Group commits to purchase or sell the asset. Regular way
purchases or sales are purchases or sales of financial assets that require delivery of assets within
the period generally established by regulation or convention in the marketplace concerned.
(b)
Financial liabilities
Initial recognition and measurement
Financial liabilities 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 liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities
not at fair value through profit or loss, directly attributable transaction costs.
Subsequent measurement
After initial recognition, financial liabilities other than derivatives, are measured at amortised
cost using the effective interest method. Gains and losses are recognised in profit or loss when
the liabilities are derecognised, and through the amortisation process.
