Financial assets and liabilities are initially recognized at fair value on settlement date and are subsequently measured based on their classification. Transaction costs are expensed when incurred. Regular purchases and sales of financial instruments are recognized at trade date.
The Company classifies its financial assets in the following categories: at fair value through profit or loss, loans
and receivables, held-to-maturity investments or available-for-sale (“AFS”) financial assets. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of financial assets at recognition.
Fair value through profit or loss
This category comprises derivatives, or assets acquired or incurred principally for the purpose of selling or repurchasing in the near terms.
Financial
assets at fair value through profit or loss are initially recognized at fair value with changes in fair value recorded through profit or loss.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not
quoted in an active market. They are classified as current assets or non-current assets based on their maturity date. Loans and receivables are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method, less any impairment
.
Held-to-maturity investments
Held-to-maturity investments are measured at amortized cost using the effective interest rate method. Transaction costs are added and amortized to the
consolidated statements of comprehensive loss over the life of the financial instrument on an effective yield basis.
Available-for-sale financial assets
AFS financial assets are non-derivatives that are either designated as available
for sale or
not
classified in any of the other financial asset categories. Changes in the fair value of AFS financial assets other than impairment losses are recognized as other comprehensive income (loss) and classified as a component of equity.
Management assesses the carrying value of AFS financial assets for objective evidence that impairment exists
at each reporting period and any impairment charges are recognized in profit or loss. Significant or prolonged decline in its fair value below cost is objective evidence of impairment. When financial assets classified as AFS are sold, the accumulated fair value adjustments recognized in accumulated other comprehensive income (loss) are included in profit or loss.
Other financial liabilities
Other financial liabilities are non-derivatives and are recognized initially at fair value, net of transaction costs incurred, and are subsequently stated at amortized cost. Any difference between the amounts originally received, net of transaction costs, and the redemption value is recognized in profit
or loss over the period to maturity using the effective interest method.
Other financial liabilities are classified as current or non-current based on their maturity date.
