Sun Art Retail Group Limited - TodayIR.com
Sun Art Retail Group Limited - TodayIR.com
Sun Art Retail Group Limited - TodayIR.com
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS<br />
1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)<br />
(n)<br />
Trade and other receivables<br />
Trade and other receivables are initially recognised at fair value and thereafter stated at<br />
amortised cost using the effective interest method, less allowance for impairment of doubtful<br />
debts (see note 1(l)), except where the receivables are interest-free loans made to related<br />
parties without any fixed repayment terms or the effect of discounting would be immaterial.<br />
In such cases, the receivables are stated at cost less allowance for impairment of doubtful<br />
debts.<br />
(o)<br />
Available-for-sale financial assets<br />
Available-for-sale financial assets are recognised initially at fair value plus any directly<br />
attributable transaction costs.<br />
Subsequent to initial recognition, they are measured at fair value at the end of each reporting<br />
period and changes therein, other than impairment losses (see note 1(l)) are recognised in<br />
other <strong>com</strong>prehensive in<strong>com</strong>e and presented within equity in the fair value reserve. When an<br />
investment is derecognised or impaired (see note 1(l)), the cumulative gain or loss in other<br />
<strong>com</strong>prehensive in<strong>com</strong>e is transferred to profit or loss.<br />
(p)<br />
Interest-bearing borrowings<br />
Interest-bearing borrowings are recognised initially at fair value less attributable transaction<br />
costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised<br />
cost with any difference between the amount initially recognised and redemption value being<br />
recognised in profit or loss over the period of the borrowings, together with any interest and<br />
fees payable, using the effective interest method.<br />
(q)<br />
Trade and other payables<br />
Trade and other payables are initially recognised at fair value. Trade and other payables are<br />
subsequently stated at amortised cost unless the effect of discounting would be immaterial,<br />
in which case they are stated at cost.<br />
(r)<br />
Cash and cash equivalents<br />
Cash and cash equivalents <strong>com</strong>prise cash at bank and on hand, demand deposits with banks<br />
and other financial institutions, and short-term, highly liquid investments that are readily<br />
convertible into known amounts of cash and which are subject to an insignificant risk of<br />
changes in value, having been within three months of maturity at acquisition. Bank overdrafts<br />
that are repayable on demand and form an integral part of the <strong>Group</strong>’s cash management<br />
are also included as a <strong>com</strong>ponent of cash and cash equivalents for the purpose of the<br />
consolidated cash flow statement.<br />
68<br />
<strong>Sun</strong> <strong>Art</strong> <strong>Retail</strong> <strong>Group</strong> <strong>Limited</strong><br />
Annual Report 2012