NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
94
COSCO Corporation (Singapore) Limited
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” (Note 13) and “cash and cash equivalents” (Note 11) and “other
current assets - deposits” (Note 16) on the balance sheet.
(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 profit or loss. Any amount in other comprehensive income
relating to that asset is reclassified to profit or loss.
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.
