NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest aremeasured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of profit or loss. FVOCI: Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, aremeasured at FVOCI. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest income and foreign exchange gains and losses which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss and recognised in other gains/(losses). Inter - est income from these financial assets is included in finance income using the effective interest rate method. Foreign exchange gains and losses are presented in other gains/(losses) and impairment expenses are presented as separate line item in the statement of profit or loss. FVPL: Assets that do not meet the criteria for amortised cost or FVOCI are measured at FVPL. A gain or loss on a debt investment that is subsequently measured at FVPL is recognised in profit or loss and presented net within other gains/ (losses) in the period in which it arises.
(iii) Impairment
From 1 January 2018, the Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.
The Company’s trade and other receivables measured at amortised cost are subject to the expected credit loss model.
Cash and cash equivalents are also subject to the impairment requirements of IFRS 9. Cash comprises cash at bank. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
(iv) Recognition and derecognition
Regular way purchases and sales of financial assets are recognised on trade-date, the date onwhich the Company commits to purchase or sell the asset. Financial assets are derecognisedwhen the rights to receive cash flows fromthe financial assets have expired or have been transferred and the Company has transferred substantially all the risks and rewards of ownership.
Non-derivative financial liabilities
Financial liabilities are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognises a financial liabilitywhen its contractual obligations are discharged or cancelled or expire.
The Company has the following non-derivative financial liabilities: loan and trade and other payables.
Other payables
Other payables are initially recognised at fair value, net of transaction costs incurred and subsequently at amortised cost using the effective interest method. Other payables are classified as current liabilities if payment is due within one year. If not, they are presented as non-current liabilities.
Foreign currency translation
(a) Functional and presentation currency
Items included in the financial statements of the Group and the Company aremeasured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The financial statements are presented in Mauritian Rupees (“Rs”), which is also considered by the directors to be the Group’s and the Company’s functional currency.
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