Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(g)
Financial instruments
(i)
Non-derivative financial assets
The Group initially recognises loans and receivables and deposits on the date that they are originated.
All other financial assets (including assets designated at fair value through profit or loss) are recognised
initially on the trade date, which is the date that the Group becomes a party to the contractual provisions
of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction
in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any
interest in transferred financial assets that is created or retained by the Group is recognised as a separate
asset or liability.
Financial assets and liabilities are offset and the net amount presented in the Statement of Financial
Position when, and only when, the Group has a legal right to offset the amounts and intends either to
settle on a net basis or to realise the asset and settle the liability simultaneously.
The Group classifies non-derivative financial assets into the following categories: financial assets at fair
value through profit or loss and loans and receivables.
Financial assets at fair value through profit or loss
A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is
designated as such upon initial recognition. Financial assets are designated at fair value through profit or
loss if the Group manages such investments and makes purchase and sale decisions based on their fair
value in accordance with the Group’s documented risk management or investment strategy. Attributable
transaction costs are recognised in the Statement of Total Return as incurred. Financial assets at fair value
through profit or loss are measured at fair value, and changes therein are recognised in the Statement of
Total Return.
Financial assets designated at fair value through profit or loss comprise investment in debt securities.
Loans and receivables
Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an
active market. Such assets are recognised initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the
effective interest method, less any impairment losses.
Loans and receivables comprise trade and other receivables, cash and cash equivalents, finance lease
receivables and other assets.
Cash and cash equivalents comprise cash at bank and fixed deposits.
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A-REIT ANNUAL REPORT
2015/2016
