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Cordlife Group Limited
Annual Report 2016
Notes to
The Financial Statements
for the financial year ended 30 June 2016
2.
Summary of significant accounting policies (cont’d)
2.13 Financial instruments (cont’d)
(a)
Financial assets (cont’d)
(i)
Financial assets at fair value through profit or loss (cont’d)
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.
(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
de-recognised or impaired, and through the amortisation process.
De-recognition
A financial asset is de-recognised where the contractual right to receive cash flows from the asset has
expired. On de-recognition 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 de-recognised 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.
