Movements in the financial assets at fair value through surplus (positive changes in fair value) or deficit (negative changes in fair value) are recognised in the Statement of Comprehensive Revenue and Expense. • Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, such financial assets are subsequently measured at amortised cost using the effective interest method, less impairment. This category generally applies to cash and cash equivalents (Note 8), term deposits, derivative financial instruments and trade and other receivables (refer Note 10). ii. Impairment of financial assets The College considers evidence of impairment for financial assets at both a specific asset and at collective level. All individually significant assets are assessed for specific impairment. Those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. A financial asset not measured at fair value through surplus or deficit is assessed at each reporting date to determine whether there is objective evidence that it is impaired. Objective evidence that financial assets are impaired as a result of one or more events after the initial recognition of the asset, and that the loss event(s) had an impact on the estimated future cash flows of that asset can be reliably estimated. Objective evidence includes default or delinquency by a counterparty, restructuring of an amount due on terms that the College would not consider otherwise, indications that a counterparty or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an equity security classified as an available- for-sale financial asset, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. Losses are recognised in surplus or deficit and reflected in an allowance account against loans and receivables. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through surplus or deficit. Individual trade receivable balances that are known to be uncollectible are written off when identified, along with any associated allowances. iii. Financial liabilities Financial liabilities classified at amortised cost are non-derivative financial liabilities that are not classified as fair value through surplus or deficit. Financial liabilities classified as amortised cost are subsequently measured at amortised cost using the
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