50 / 57
Impairment of Tangible and Intangible Assets
At the end of each reporting period, the Corporation reviews the carrying amounts of its tangible and intangible assets, to
determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible
to estimate the recoverable amount of an individual asset, the Corporation estimates the recoverable amount of the cash-
generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or
cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit
is reduced to its recoverable amount. An impairment loss is recognized in profit or loss.
When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to
the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined
had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss
is recognized in profit or loss.
Financial Instruments
Financial assets and financial liabilities are recognized when the Corporation becomes a party to the contractual provisions of
the 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. Fair value is determined in the manner described in Note 31.
b) Available-for-sale financial assets
Available-for-sale financial assets are non-derivatives that are either 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 foreign currency 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 that do not have a quoted market prices in an active market and whose fair value
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, 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,
50 CPC 2016