SINGAPORE WINDSOR HOLDINGS LIMITED
| Annual Report 2015
45
Year ended 31 March 2015
NOTES TO THE
FINANCIAL STATEMENTS
2.
Summary of significant accounting policies (cont’d)
Financial assets (cont’d)
2.
Loans and receivables: Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Assets that are for sale immediately or in the near term
are not classified in this category. These assets are carried at amortised costs using the effective interest
method (except that short-duration receivables with no stated interest rate are normally measured at original
invoice amount unless the effect of imputing interest would be significant) minus any reduction (directly
or through the use of an allowance account) for impairment or uncollectibility. Impairment charges are
provided only when there is objective evidence that an impairment loss has been incurred as a result of one
or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or
events) has an impact on the estimated future cash flows of the financial asset or group of financial assets
that can be reliably estimated. The methodology ensures that an impairment loss is not recognised on
the initial recognition of an asset. Losses expected as a result of future events, no matter how likely, are
not recognised. For impairment, the carrying amount of the asset is reduced through use of an allowance
account. The amount of the loss is recognised in profit or loss. An impairment loss is reversed if the reversal
can be related objectively to an event occurring after the impairment loss was recognised. Typically the trade
and other receivables are classified in this category.
3.
Held-to-maturity financial assets: As at end of the reporting year date there were no financial assets classified
in this category.
4.
Available-for-sale financial assets: These are non-derivative financial assets that are designated as available-
for-sale on initial recognition or are not classified in one of the previous categories. These assets are
carried at fair value. Changes in fair value of available-for-sale financial assets (other than those relating to
foreign exchange translation differences on monetary investments) are recognised in other comprehensive
income and accumulated in a separate component of equity under the heading revaluation reserves.
Such reserves are reclassified to profit or loss when realised through disposal. When there is objective
evidence that the asset is impaired, the cumulative loss is reclassified from equity to profit or loss as a
reclassification adjustment. A significant or prolonged decline in the fair value of the investment below its
cost is considered to be objective evidence of impairment. If, in a subsequent period, the fair value of an
equity instrument classified as available-for-sale increases and the increase can be objectively related to an
event occurring after the impairment loss, it is reversed against revaluation reserves and is not subsequently
reversed through profit or loss. However for debt instruments classified as available-for-sale impairment
losses recognised in profit or loss are subsequently reversed if an increase in the fair value of the instrument
can be objectively related to an event occurring after the recognition of the impairment loss. For non-
equity instruments classified as available-for-sale the reversal of impairment is recognised in profit or loss.
The weighted average method is used when determining the cost basis of publicly listed equities being
disposed of. The financial assets are classified as non-current assets unless management intends to dispose
of the investments within 12 months of the end of the reporting year. Usually non-current investments in
equity shares and debt securities are classified in this category but it does not include subsidiaries, joint
ventures, or associates. Unquoted investments are stated at cost less allowance for impairment in value
where there are no market prices, and management is unable to establish fair value by using valuation
techniques except that where management can establish fair value by using valuation techniques the
relevant unquoted investments are stated at fair value. For unquoted equity instruments impairment losses
are not reversed.
Cash and cash equivalents
Cash and cash equivalents include bank and cash balances, on demand deposits and any highly liquid debt
instruments purchased with an original maturity of three months or less. For the statement of cash flows the item
includes cash and cash equivalents less cash subject to restriction and bank overdrafts payable on demand that
form an integral part of cash management.
