are presented in a separate line item as financial assets carried at cost. If, in a subsequent period, the fair value of the
financial assets can be reliably measured, the financial assets are remeasured at fair value. The difference between
carrying amount and fair value is recognized in or other comprehensive income on financial assets. Any impairment
losses are recognized in profit and loss.
c) Loans and receivables
Loans and receivables (including trade receivables, cash and cash equivalents, debt investments with no active market,
and other receivables are measured at amortized cost using the effective interest method, less any impairment, except
for short-term receivables, which are measured at their original invoice amounts with no stated interest rate if the
effect of discounting is immaterial.
Cash equivalents include time deposits with original maturities of within three months from the date of acquisition and
are highly liquid, readily convertible to a known amount of cash and be subject to an insignificant risk of changes in
value. These cash equivalents are held for the purpose of meeting short-term cash commitments.
2) Impairment of financial assets
Financial assets, other than those at fair value through profit or loss, are assessed for indicators of impairment at the end
of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result
of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of
the investment have been affected.
Financial assets carried at amortized cost, such as trade receivables, are assessed for impairment collectively even if they
had been assessed as not impaired individually. Objective evidence of impairment for a portfolio of receivables could
include the Corporation’s past experience of collecting payments and impairment as well as observable changes in
national or local economic conditions that correlate with default on receivables.
For financial assets carried at amortized cost, the amount of the impairment loss recognized is the difference between the
asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original
effective interest rate.
For financial assets measured at amortized cost, if, in a subsequent period, the amount of the impairment loss decreases
and the decrease can be related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at
the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not
been recognized.
For available-for-sale equity investments, a significant or prolonged decline in the fair value of the security below its cost
is considered to be objective evidence of impairment.
When an available-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognized
in other comprehensive income are reclassified to profit or loss in the period.
In respect of available-for-sale equity securities, impairment loss previously recognized in profit or loss are not reversed
through profit or loss. Any increase in fair value subsequent to an impairment loss is recognized in other comprehensive
income. In respect of available-for-sale debt securities, the impairment loss is subsequently reversed through profit or
loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition
of the impairment loss.
For financial assets that are carried at cost, the amount of the impairment loss is measured as the difference between the
asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of
return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the
exception of trade receivables (pease specify) where the carrying amount is reduced through the use of an allowance
account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent
recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount
of the allowance account are recognized in profit or loss except for uncollectible trade receivables that are written off
against the allowance account.
3) Derecognition of financial assets
The Corporation derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or
when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.
