boohoocom-plc-final-admission-document-5-march-2014

Financial assets
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.
Impairment losses are recognised in the income statement.
The recoverable amount of Wasabi Frog’s investments in receivables carried at amortised cost is calculated
as the present value of estimated future cash flows, discounted at the original effective interest rate (i.e. the
effective interest rate computed at initial recognition of these financial assets). Receivables with a short
duration are not discounted.
Inventories
Inventories comprise goods held for resale which are valued at the lower of cost and net realisable value.
Provision is made for slow moving or obsolete stock if required, and is valued on a first-in, first-out basis.
Other receivables
Other receivables are recognised initially at fair value and subsequently measured at amortised cost using
the effective interest method, less provision for impairment.
Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.
Trade and other payables
Trade payables are obligations to pay for goods and services which have been acquired in the commercial
operations of the Operating Group. Trade payables are classified as current liabilities if payment is due within
one year or less. If not they are presented as non-current liabilities.
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method.
Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are
subsequently carried at amortised cost; any difference between the proceeds (net of transaction costs) and
the redemption value is recognised in the income statement over the period of the borrowings using the
effective interest method.
Share capital
Ordinary shares are classified as equity.
Classification of financial instruments issued by Wasabi Frog
Financial instruments issued by Wasabi Frog are treated as equity (i.e. forming part of shareholders’ funds)
only to the extent that they meet the following two conditions:
(a) they include no contractual obligations upon the Operating Group to deliver cash or other financial
assets or to exchange financial assets or financial liabilities with another party under conditions that
are potentially unfavourable to the Operating Group; and
(b) where the instrument will or may be settled in Wasabi Frog’s own equity instruments, it is either a
non-derivative that includes no obligation to deliver a variable number of Wasabi Frog’s own equity
instruments or is a derivative that will be settled by Wasabi Frog’s exchanging a fixed amount of cash
or other financial assets for a fixed number of its own equity instruments.
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where
the instrument so classified as a financial liability takes the legal form of Wasabi Frog’s own shares, the
amounts presented in these financial information for called up share capital and share premium account
exclude amounts in relation to those shares.
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