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2. Accounting policiesAFS financial assetsListed shares held by the Company and Group that aretraded in an active market are classified as being AFS andare stated at fair value. Fair value is determined in themanner described in Note 40. Gains and losses arisingfrom changes in fair value are recognised directly inequity in the investments revaluation reserve with theexception of impairment losses, interest calculated usingthe effective interest method and foreign exchange gainsand losses on monetary assets, which are recogniseddirectly in profit or loss. Where the investment is disposedof or is determined to be impaired, the cumulative gain orloss previously recognised in the investments revaluationreserve is included in profit or loss for the period.Dividends on AFS equity instruments are recognised inprofit or loss when the Group’s right to receive paymentsis established.The fair value of AFS monetary assets denominated in aforeign currency is determined in that foreign currencyand translated at the spot rate at the balance sheetdate. The change in fair value attributable to translationdifferences that result from a change in amortised cost ofthe asset is recognised in profit or loss, and other changesare recognised in equity.Loans and receivablesTrade receivables, loans, and other receivables that havefixed or determinable payments that are not quoted inan active market are classified as ‘loans and receivables’.Loans and receivables are measured at amortised costusing the effective interest method less any impairment.Interest income is recognised by applying the effectiveinterest rate, except for short-term receivables when therecognition of interest would be immaterial.Impairment of financial assetsFinancial assets are assessed for indicators of impairmentat each balance sheet date. Financial assets are impairedwhere there is objective evidence that, as a result of oneor more events that occurred after the initial recognitionof the financial asset, the estimated future cash flows ofthe investment have been impacted. For financial assetscarried at amortised cost, the amount of the impairmentis the difference between the asset’s carrying amountand the present value of estimated future cash flows,discounted at the original effective interest rate.The carrying amount of the financial asset is reduced bythe impairment loss directly for all financial assets with theexception of trade receivables where the carrying amountis reduced through the use of an allowance account.When a trade receivable is uncollectable, it is written offagainst the allowance account. Subsequent recoveries ofamounts previously written off are credited against theallowance account. Changes in the carrying amount ofthe allowance account are recognised in profit or loss.With the exception of AFS equity instruments, if, in asubsequent period, the amount of the impairment lossdecreases and the decrease can be related objectively toan event occurring after the impairment was recognised,the previously recognised impairment loss is reversedthrough profit or loss to the extent that the carryingamount of the investment at the date the impairment isreversed does not exceed what the amortised cost wouldhave been had the impairment not been recognised.In respect of AFS equity securities, any increase in fairvalue subsequent to an impairment loss is recogniseddirectly in equity.InvestmentsInvestments in immaterial non-consolidated companiesare generally recorded at cost less provision for anyimpairment.Financial liabilitiesFinancial liabilities are classified as other financialliabilities.Other financial liabilities, including borrowings, areinitially measured at fair value, net of transaction costs.Other financial liabilities are subsequently measured atamortised cost using the effective interest method, withinterest expense recognised on an effective yield basis.102 Financial report