年報 - HKExnews

NOTES TO THE FINANCIAL STATEMENTS
31 March 2010
2.4 SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of HKAS 39 are
classified as financial liabilities at fair value through profit
or loss or loans and borrowings, as appropriate. The Group
determines the classification of its financial liabilities at
initial recognition.
All financial liabilities are recognised initially at fair value
and in the case of loans and borrowings, plus directly
attributable transaction costs.
The Group’s financial liabilities include trade and bills
payables, due to an associate, other payables, derivative
financial instruments and interest-bearing bank borrowings.
Subsequent measurement
The measurement of financial liabilities depends on their
classification as follows:
Loans and borrowings
After initial recognition, interest-bearing bank borrowings
are subsequently measured at amortised cost, using the
effective interest method unless the effect of discounting
would be immaterial, in which case they are stated at cost.
Gains and losses are recognised in the income statement
when the liabilities are derecognised as well as through
the effective interest rate method amortisation process.
Amortised cost is calculated by taking into account any
discount or premium on acquisition and fees or costs
that are an integral part of the effective interest rate. The
effective interest rate amortisation is included in finance
costs in the income statement.
2.4
39
TEXWINCA HOLDINGS LIMITED ANNUAL REPORT 2010
63