Uster Technologies Ltd | Annual Report 2009 Uster Technologies ...

3.6 Financial InstrumentsFinancial InstrumentsFinancial instruments comprise investments in equity and debt securities, trade and other receivables, cashand cash equivalents, loans and borrowings, trade and other payables as well as accrued liabilities.Financial instruments are classified in the following categories:• Financial assets at fair value through profit or loss• Loans and receivables• Held-to-maturity investments• Available-for-sale financial assets• Financial liabilities at fair value through profit or loss• Financial liabilities at amortized costThe classification depends on the purpose for which the financial assets or liabilities were acquired or enteredinto and is determined at initial recognition.Non-derivative financial instruments are recognized initially at fair value plus, for instruments not at fairvalue through profit and loss, any directly attributable transaction costs. Subsequent to initial recognitionthey are measured as described below.Financial Assets at Fair Value through Profit or LossFinancial assets at fair value through profit or loss include financial assets held for trading. A financial assetfalls under this category if acquired principally for the purpose of selling in the short-term. Assets in thiscategory are classified as current assets. The Group did not have financial instruments falling under thiscategory on December 31, 2009 or 2008.Subsequent to initial recognition financial assets at fair value through profit or loss are measured at fairvalue, and changes therein are recognized in profit or loss without any deduction for transaction coststhat may occur on sale or disposal.Loans and ReceivablesLoans and receivables are non-derivative financial assets with fixed or determinable payments that are notquoted in an active market. They are included in current assets, except for maturities greater than 12 monthsafter the reporting date. These are classified as non-current assets. The Group’s loans and receivablescomprise “receivables trade” (note 18 Receivables Trade), “other receivables” (note 19 Other Receivables),“cash and cash equivalents” (note 20 Cash and Cash Equivalents) as well as “financial assets” that includemainly deposits.Loans and receivables are carried at amortized cost, using the effective interest method less any allowancefor impairment. Gains and losses are recognized in profit and loss when the loans and receivables arederecognized or impaired.64 Uster Group – Notes to the Consolidated Financial Statements 2009