Read the full Annual Report in PDF format - CSIR

1PRINCIPAL ACCOUNTING POLICIES (continued)
Finance income/expense (continued)
statement of comprehensive income as
it accrues, using the effective interest
rate method.
Dividend income is recognised in the
statement of comprehensive income
on the date that the entity’s right to
receive payments is established (which
is when the dividend is declared).
Interest payable on borrowings is
calculated using the effective interest
rate method.
Expenses
Operating lease payments
Payments made under operating
leases are recognised in the statement
of comprehensive income on a
straight-line basis over the term of
the lease. Lease incentives received
are recognised in the statement of
comprehensive income as an integral
part of the total lease expense, over
the term of the lease.
Finance lease payments
Minimum lease payments are
apportioned between the fi nance
charge and the reduction of the
outstanding liability. The fi nance
charge is allocated to each period
during the lease term so as to produce
a constant periodic rate of interest on
the remaining balance of the liability.
Financial instruments
Financial instruments are initially
measured at fair value plus, for
instruments not at fair value through
profi t or loss, any directly attributable
transaction costs, when the Group
has become a party to contractual
provision of the instrument. Subsequent
to initial recognition, these instruments
are measured as set out below.
Trade and other receivables
Trade receivables are subsequently
measured at amortised cost using
the effective interest method less any
impairment losses, which approximate
the fair value of these due to the shortterm
nature thereof.
Receivables originated by the Group
and not held for trading are measured
at amortised cost using the effective
interest method less any impairment
losses if these have a fi xed maturity.
Investments and loans
Investments, other than in subsidiaries,
associates or joint ventures, are
recognised at fair value. Dividends
are accounted for on the last day
of registration in respect of listed
investments and when declared
in respect of unlisted investments.
On disposal of an investment, the
difference between the net disposal
proceeds and the carrying amount is
charged or credited to the statement
of comprehensive income.
Loans are measured at amortised cost
using the effective interest method less
any impairment losses if they have a
fi xed maturity, or at cost if there is no
fi xed maturity.
Cash and cash equivalents
Cash on hand is stated at amortised
cost, which is its fair value. Cash
and cash equivalents comprise bank
balances, cash on deposit and cash
on hand.
Forward exchange contracts
Forward exchange contracts are
fair valued and gains and losses
are recognised in the statement of
comprehensive income. Hedge
accounting is not applied.
Trade and other payables and advances
received
Trade and other payables and
advances received are stated at
amortised cost, which approximates
the fair value of these due to the shortterm
nature thereof.
De-recognition
Financial assets (or a portion thereof)
are de-recognised when the Group
realises the rights to the benefi ts
specifi ed in the contract, the rights
expire or the Group surrenders or
otherwise loses control and does
not retain substantially all risks and
rewards of the asset. On
de-recognition, the difference between
the carrying amount of the fi nancial
asset and proceeds receivable
is included in the statement of
comprehensive income.
Financial liabilities (or a portion
thereof) are de-recognised when the
obligation specifi ed in the contract
135 ANNUAL FINANCIAL STATEMENTS