Financial Instruments
Financial assets and financial liabilities are recognized when the Corporation becomes a party to the contractual
provisions of financial instruments.
Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly
attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and
financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial
assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the
acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately
in profit or loss.
a.Financial assets
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
1)Measurement category
Financial assets are classified into the following categories: Financial assets at fair value through profit or loss,
available-for-sale financial assets, and loans and receivables.
a)Financial assets at fair value through profit or loss
Financial assets are classified as at fair value through profit or loss when the financial asset either is held for
trading or is designated as at fair value through profit or loss.
Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising
on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss does not
incorporate any dividend or interest earned on the financial asset.
b)Available-for-sale financial assets
Available-for-sale financial assets are nonderivatives that either are designated as available-for-sale or are
not classified as loans and receivables, held-to-maturity investments or financial assets at fair value through
profit or loss.
Available-for-sale financial assets are measured at fair value. Changes in the carrying amount of available-
for-sale monetary financial assets relating to changes in exchange rates, interest income calculated using
the effective interest method and dividends on available-for-sale equity investments are recognized in profit
or loss. Other changes in the carrying amount of available-for-sale financial assets are recognized in other
comprehensive income and will be reclassified to profit or loss when the investment is disposed of or is
determined to be impaired.
Dividends on available-for-sale equity instruments are recognized in profit or loss when the Corporation’s
right to receive the dividends is established.
Available-for-sale equity investments with no quoted market prices in an active market and with fair values
that cannot be reliably measured and derivatives that are linked to and must be settled by delivery of such
unquoted equity investments are measured at cost less any identified impairment loss at the end of each
reporting period and are presented in a separate line item as financial assets carried at cost. If the fair value
of the financial assets can later be reliably measured, the financial assets are remeasured at fair value. The
difference between carrying amount and fair value is recognized in profit or loss or other comprehensive
income on financial assets. Any impairment losses are recognized in profit and loss.
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