Page 96 - ar2013.pdf

NOTES TO THE FINANCIAL STATEMENTS
For the Ànancial year ended 31 December 2013
94
COSCO Corporation (Singapore) Limited
F i nanc i a l Statement s
2. Significant accounting policies (continued)
2.11 Financial assets (continued)
(a) Classification (continued)
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market. They are presented as current assets, except for those expected
to be realised later than 12 months after the balance sheet date which are presented as non-current
assets. Loans and receivables are presented as “trade and other receivables” and “cash and cash
equivalents”.
(iii) Held-to-maturity financial assets
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Group’s management has the positive intention and ability
to hold to maturity. If the Group were to sell other than an insignificant amount of held-to-maturity
financial assets, the whole category would be tainted and reclassified as available-for-sale. They are
presented as non-current assets, except for those maturing within 12 months after the balance sheet
date which are presented as current assets. The Group currently does not have any held-to-maturity
financial assets.
(iv) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either designated in this category or
not classified in any of the other categories. They are presented as non-current assets unless the
investment matures or management intends to dispose of the assets within 12 months after the
balance sheet date.
(b) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade date - the date on which the
Group commits to purchase or sell the asset.
Financial assets are derecognised when the rights to receive cash flows from the financial assets have
expired or have been transferred and the Group has transferred substantially all risks and rewards
of ownership. On disposal of a financial asset, the difference between the carrying amount and the sale
proceeds is recognised in the income statement. Any amount in other comprehensive income relating to that
asset is reclassified to the income statement.
Trade receivables that are factored out to banks and other financial institutions with recourse to the Group
are not derecognised until the recourse period has expired and the risks and rewards of the receivables
have been fully transferred. The corresponding cash received from the financial institutions is recorded as
borrowings.
(c) Initial measurement
Financial assets are initially recognised at fair value plus transaction costs except for financial assets at fair
value through profit or loss, which are recognised at fair value. Transaction costs for financial assets at fair
value through profit or loss are recognised immediately as expenses.