CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

amount that has previously been written off is credited to the function to which it relates in the consolidatedcomprehensive income statement.This category also includes cash and cash equivalents, which consist of cash, bank balances and other currentinvestments with a maturity date within three months of the acquisition date.Financial assets held for tradingFinancial assets held for trading are assets that are not derivatives and where the assets have been identified asbeing held for trading or have not been classified in any of the other categories. They are included in non-current assets ifmanagement does not intend to dispose of the asset within 12 months of the balance sheet date. Financial assets in thiscategory is continuous valued as fair value with the periods fair value changes as special component of equity, althoughnot value changes that are dependent on depreciations, not either interest on receivables instruments and income fromdividends and currency differences on monetary items which is disclosed at profit (loss) for the year.The fair value of publicly listed securities is based on current bid prices. If the market for a financial asset is notactive (and for non-listed securities), the Group confirms the fair value by applying valuation techniques such as the useof information in respect of recently completed transactions at an arms-length distance, reference to the fair value ofanother instrument that is essentially identical, analysis of discounted cash flows and option valuation models. In thiscontext market information is used to as great an extent as possible, while company-specific information is used as littleas possible. If the Company believes that these methods do not produce a reliable value, the assets are valued at the costvalue. All financial assets held for trading are valued as of the balance sheet date at the cost value if a reliable valuecannot be calculated.Other financial liabilitiesThe category “other financial liabilities” includes borrowing and other liabilities (trade and other payables andother current liabilities).BorrowingBorrowing is initially recorded at fair value, net after transaction expenses. Borrowing is subsequently recordedat accrued cost value and any difference between the amount received (net after transaction expenses) and the repaymentamount is recorded as “financial expenses” divided over the term of the loan.Borrowing is classified as current liabilities unless the Group has an unconditional right to defer payment of thedebt for at least 12 months after the balance sheet date.Other liabilitiesOther liabilities are initially recorded at fair value and subsequently at accrued cost value.Impairment of financial assetsOn each balance sheet date the Group considers whether there is objective evidence that an impairment needexists for a financial asset or group of financial assets. With regard to shares that are classified as assets held for trading,a significant or extended impairment in the fair value of a share to a level below its cost value is considered to constitutean indication that there is an impairment need. If such evidence exists for financial assets held for trading, theaccumulated loss—calculated as the difference between the cost value and the current fair value minus any previousimpairment recorded in the profit (loss) for the year—is removed from equity and recorded in the profit (loss) for theyear. Impairments of equity instruments, which are recorded in the profit (loss) for the year, are not reversed via theprofit (loss) for the year. Reservation of trade and other receivables is described in note 23.F-16