Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(g)
Financial instruments (continued)
(ii)
Non-derivative financial liabilities
The Group initially recognises debt securities issued on the date that they are originated. All other financial
liabilities (including liabilities designated at fair value through statement of total return) 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 liability when its contractual obligations are discharged, cancelled or
when they expire.
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 liabilities into the other financial liabilities category. Such
financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the
effective interest method.
Financial liabilities at fair value through profit or loss
Upon initial recognition, financial liabilities are measured at fair value and attributable transaction costs
are recognised in the Statement of Total Return as incurred. Subsequent to initial recognition, the financial
liabilities are measured at fair value, with changes recognised in the Statement of Total Return as finance
income or finance costs.
Financial liabilities at fair value through profit or loss comprise the collateral loan and the Exchangeable
Collateralised Securities (“ECS”).
Other financial liabilities
Other financial liabilities are recognised initially at fair value plus any directly attributable transaction
costs. Subsequent to initial recognition, other financial liabilities are measured at amortised cost using the
effective interest method.
Other financial liabilities comprise trade and other payables, security deposits, medium term notes, term
loans and short term borrowings.
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A-REIT ANNUAL REPORT
2015/2016
