LensCrafters 2012 Annual Report Download - page 195

| 109 >CONSOLIDATED FINANCIAL STATEMENTS - NOTES
Financial assets at fair value through profit or loss are financial assets held for trading.
A financial asset is classified in this category if acquired principally for the purpose of
selling in the short-term. Derivatives are also categorized as held for trading unless
they are designated as hedges. Assets in this category are classified as current or non-
current assets based on their maturity.
Transaction costs are immediately recognized in the consolidated statement of
income.
After initial recognition, financial assets at fair value through profit and loss are
measured at their fair value each reporting period. Gains and losses deriving from
changes in fair value are recorded in the consolidated statement of income in the
period in which they occur. Dividend income from financial assets at fair value through
profit or loss is recognized in the consolidated statement of income as part of other
income when the Group’s right to receive payments is established.
(b) 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 are included in current assets,
except for those with maturities greater than 12 months or which are not expected to
be repaid within 12 months after the end of the reporting period. These are classified
as non-current assets. The Group’s loans and receivables are comprised of trade and
other receivables. Loans and receivables are initially measured at their fair value plus
transaction costs. After initial recognition, loans and receivables are measured at
amortized cost, using the effective interest method.
(c) Financial assets available for sale
Available-for-sale financial assets are non-derivative financial assets that are either
designated in this category or not classified in any of the other categories. They are
included in non-current assets unless the investment matures or management intends
to dispose of it within 12 months of the end of the reporting period. Financial assets
available for sale are initially measured at their fair value plus transaction costs. After
initial recognition, financial assets available for sale are carried at fair value. Any
changes in fair value are recognized in other comprehensive income.
Dividend income from financial assets held for sale is recognized in the consolidated
statement of income as part of other income when the Group’s right to receive
payments is established.
A regular way purchase or sale of financial assets is recognized using the settlement date.
Financial assets are derecognized when the rights to receive cash flows from the investments
have expired or have been transferred and the Group has transferred substantially all risks
and rewards of ownership.
The fair value of listed financial instruments is based on the quoted price on an active