AFRICAN DAWN ANNUAL REPORT 2018 44 Accounting Policies continued 1.15 Financial instruments The Group has the following financial instruments: • Other financial assets • Loans to Group companies • Trade receivables • Other receivables • Cash and cash equivalents • Borrowings • Loans from Group companies • Loans from directors • Trade payables • Other payables • Properties in possession All disclosures required by IFRS 7 can be found in Note 36. Properties in possession Properties in possession arise when a counterparty is unable to settle its obligations and the Group takes possession of collateral as full or part settlement of such amounts. In general, the Group seeks to dispose of such property and other assets that are not readily convertible into cash as soon as the market for the relevant asset permits. Properties in possession are reported separately from loans and receivables so that users can differentiate them from ordinary loans and receivables. The repossessed properties are recognised when the risks and rewards of the properties have been transferred to the Group. The corresponding loans are derecognised when the Group becomes the owner of the property. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits. Cash and cash equivalents are stated at cost which approximates fair value due to the short-term nature of these instruments. Classification Financial assets in the Group are classified into the following category: • Loans and receivables Financial liabilities are classified into the following category: • Financial liabilities at amortised cost. The categories are explained further below: Loans and receivables: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They arise when the group provides money, goods or services directly to a debtor with no intention of trading the advance. All financial assets are classified in this category. Financial liabilities at amortised cost: All financial liabilities are classified in this category. Initial measurement Financial instruments are initially measured at fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial instruments.
AFRICAN DAWN 2018 Annual Report
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