ACCOUNTING RULES
Financial instruments
Classification and measurement
Financial assets are subject to classification in the following categories of financial instruments:
- measured at amortised cost;
- measured at fair value through other comprehensive income („FVTOCI”);
- measured at fair value through profit or loss („FVTPL”).
The classification of financial assets is based on the business model and characteristics of cash flows.
A debt financial asset is measured at amortised cost if both of the following conditions are met:
- the objective of the entity’s business model is to hold the financial asset to collect the contractual cash flows;
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI test).
A debt financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:
- the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets;
- the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding (SPPI test).
All other debt instruments must be measured at fair value through profit or loss (FVTPL).
All equity investments are to be measured at fair value. If an equity investment is not held for trading, the Group can make an irrevocable election at initial recognition to measure it at FVTOCI. For equity instruments held for trading, changes in fair value are recognised in profit or loss.
All standard transactions to purchase or sell financial assets are recognised at the transaction date, i.e. at the date on which the entity committed to purchase the asset. Standard transactions to purchase or sell financial assets are purchase or sale transactions in which the asset delivery deadline is explicitly stated by law or customs in a given market.
An impairment model is based on expected credit losses and its scope covers the following:
- Financial assets measured at amortised cost;
- debt financial assets measured at fair value through other comprehensive income;
- Loan commitments when there is a present obligation to extend credit;
- financial guarantee contracts to which IFRS 9 is applied;
- Lease receivables within the scope of IFRS 16;
- Contract assets within the scope of IFRS 15.
The Group classified financial liabilities in one of the following categories:
- measured at amortised cost,
- measured at fair value through profit or loss.
25.1 Description of significant items within particular classes of financial instruments
25.2 Fair value of financial instruments
25.4 Statement of comprehensive income
25.5 Collateral for repayment of receivables and liabilities