Singapore Airlines 2015 Annual Report Download - page 118

Notes to the Financial Statements
31 March 2015
2 Summary of Significant Accounting Policies (continued)
(r) Financial liabilities (continued)
The measurement of financial liabilities depends on their classification as follows:
(i) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition at fair value through profit or loss. Financial liabilities are classified as held for
trading if they are acquired for the purpose of selling in the near term. This category includes derivative financial
instruments entered into by the Group that are not designated as hedging instruments in hedge relationships.
Separated embedded derivatives are also classified as held for trading unless they are designated as eective
hedging instruments.
Subsequent to initial recognition, financial liabilities at fair value through profit or loss are measured at fair
value. Any gains or losses arising from changes in fair value of the financial liabilities are recognised in the profit
and loss account.
The Group has not designated any financial liabilities upon initial recognition at fair value through profit or loss.
(ii) Other financial liabilities
Aer initial recognition, other financial liabilities are subsequently measured at amortised cost using the eective
interest rate method. Gains and losses are recognised in the profit and loss account when the liabilities are
derecognised, and through the amortisation process.
A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired.
When an existing financial liability is replaced by another from the same lender on substantially dierent terms,
or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a
derecognition of the original liability and the recognition of a new liability, and the dierence in the respective
carrying amounts is recognised in the profit and loss account.
(s) Osetting of financial assets and liabilities
Financial assets and financial liabilities are oset and the net amount is presented in the balance sheets, when and only
when, there is a currently enforceable legal right to set o the recognised amounts and there is an intention to settle on
a net basis, or to realise the assets and settle the liabilities simultaneously.
(t) Loans, notes payable and borrowings
Loans, notes payable and other borrowings are initially recognised at the fair value of the consideration received less
directly attributable transaction costs. Aer initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortised cost using the eective interest method.
Gains and losses are recognised in the profit and loss account when the liabilities are derecognised as well as through
the amortisation process.
(u) Trade and other creditors
Trade and other creditors and amounts owing to subsidiary and associated companies are initially recognised at fair value
and subsequently measured at amortised cost using the eective interest method.
Gains and losses are recognised in the profit and loss account when the liabilities are derecognised as well as through
the amortisation process.
116 FINANCIAL