ANNUAL%20REPORT%202015%20eng

Notes to Consolidated Financial Statements
2 SIGNIFICANT ACCOUNTING POLICIES (Continued)
(e)
Associates and joint ventures (Continued)
In all other cases when the Group ceases to have significant influence over an associate or joint control
over a joint venture, it is accounted for as a disposal of the entire interest in that investee, with a
resulting gain or loss being recognised in profit or loss. Any interest retained in that former investee at
the date when significant influence or joint control is lost is recognised at fair value and this amount is
regarded as the fair value on initial recognition of a financial asset (see Note 2(f)).
(f)
Other investments in debt and equity securities
The Group’s and the Company’s policies for investments in debt and equity securities, other than
investments in subsidiaries, associates and joint ventures, are as follows:
Investments in debt and equity securities are initially stated at fair value, which is their transaction price
unless it is determined that the fair value at initial recognition differs from the transaction price and
that fair value is evidenced by a quoted price in an active market for an identical asset or liability or
based on a valuation technique that uses only data from observable markets. Cost includes attributable
transaction costs, except where indicated otherwise below. These investments are subsequently
accounted for as follows, depending on their classification.
Investments in securities which do not fall into categories of investments in securities held for
trading neither dated debt securities are classified as available-for-sale securities. At the end of each
reporting period the fair value is remeasured, with any resultant gain or loss being recognised in other
comprehensive income and accumulated separately in equity in the fair value reserve. As an exception
to this, investments in equity securities that do not have a quoted price in an active market for an
identical instrument and whose fair value cannot otherwise be reliably measured are recognised in the
statement of financial position as cost less impairment losses (see note 2(k)).
When the investments are derecognised or impaired (see note 2(k)), the cumulative gain or loss
recognised in equity is reclassified to profit or loss. Investments are recognised/derecognised on the
date the Group commits to purchase/sell the investments or they expire.
(g)
Derivative financial instruments
Derivative financial instruments are recognised initially at fair value. At the end of each reporting period
the fair value is remeasured. The gain or loss on remeasurement to fair value is recognised immediately
in profit or loss.
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Annual Report 2015