Page 81 - Annual Report 2021

(b) Foreign currency transactions and Balances
Transactions in foreign currencies are converted into the respective functional currencies on initial recognition
using exchange rates at the transaction dates. At the end of the reporting period, foreign currency monetary
assets and liabilities are retranslated at the exchange rates of that date. Non-monetary assets and liabilities
denominated in foreign currencies are not retranslated at the end of the reporting date.

All foreign currency exchange differences arising from the settlement of monetary items or on the
retranslation of monetary items are recognised in profit or loss in the period in which they arise.

5.5 FINANCIAL INSTRUMENTS

(a) initial recognition and Measurement
Financial assets and financial liabilities are recognised in the statements of financial position when the Group
has become a party to the contractual provisions of the instruments.

A financial instrument is recognised initially at the transaction price, including transaction costs. For a
financial asset or a financial liability that is subsequently measured at fair value through profit or loss,
transaction costs are recognised in profit or loss when incurred.

(b) subsequent Measurement
Debt instruments that are classified as current assets or current liabilities are measured at the undiscounted
amount of cash or other consideration expected to be paid or received. Other debt instruments are measured
at amortised cost using the effective interest method.

Investments in non-puttable ordinary shares are measured at cost less impairment unless the shares are
publicly traded or their fair values can otherwise be measured reliably without undue cost or effort, in which
case the investments are measured at fair value with changes in fair value recognised in profit or loss.

Other than the above, all financial assets and financial liabilities are measured at fair value with changes in
fair value recognised in profit or loss.

(c) Derecognition
A financial asset or part of it is derecognised when, and only when, the contractual rights to the cash flows
from the financial asset expire or are settled, or control of the asset is not retained or substantially all of the
risks and rewards of ownership of the financial asset are transferred to another party. On derecognition of a
financial asset, the difference between the carrying amount of the financial asset derecognised and the
consideration received (including any newly created rights and obligations) is recognised in profit or loss.

A financial liability or part of it is derecognised when, and only when, the obligation specified in the contract
is discharged, cancelled or expires. A substantial modification of the terms of an existing financial liability is
accounted for as an extinguishment of the original financial liability and the recognition of a new financial
liability. On derecognition of a financial liability, the difference between the carrying amount of the financial
liability extinguished or transferred to another party and the consideration paid (including any non-cash
assets transferred or liabilities assumed) is recognised in profit or loss.

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