Creative 2013 Annual Report Download - page 26

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CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
independent of those from other assets. If this is the case, the recoverable amount is determined for the CGU to which the
asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of
the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment loss in prot or loss.
An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a change in the estimates
used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of
this asset is increased to its revised recoverable amount, provided that this amount does not exceed the carrying amount that
would have been determined (net of any accumulated amortisation or depreciation) had no impairment loss been recognised
for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in prot or loss.
2.5 Cash and cash equivalents
Cash and cash equivalents include cash at bank and on hand and short-term bank deposits with various banks which are
subject to an insignicant risk of change in value.
2.6 Financial assets
 (a) Classication
The Group classies its nancial assets in the following categories: loans and receivables and nancial assets, available-for-
sale. The classication depends on the nature of the asset and the purpose for which the assets were acquired. Management
determines the classication of its nancial assets at initial recognition.
(i) Loans and receivables
Loans and receivables are non-derivative nancial assets with xed or determinable payments that are not quoted
in an active market. They are presented as current assets, except for those maturing later than 12 months after the
balance sheet date which are presented as non-current assets. Loans and receivables are presented as “cash and cash
equivalents”, “trade receivables”, “amounts due from subsidiaries”, other receivables and loan within “other current
assets” and “other non-current receivables” on the balance sheet.
(ii) Financial assets, available-for-sale
Financial assets, available-for-sale are non-derivatives that are either designated in this category or not classied in
any of the other categories. They are presented as non-current assets unless management intends to dispose of the
assets within 12 months after the balance sheet date.
(b) Recognition and derecognition
Regular way purchases and sales of nancial assets are recognised on trade-date, the date on which the Group commits to
purchase or sell the asset.
Financial assets are derecognised when the rights to receive cash ows from the nancial assets have expired or have been
transferred and the Group has transferred substantially all risks and rewards of ownership. On disposal of a nancial asset,
the difference between the carrying amount and the sale proceeds is recognised in prot or loss. Any amount in the fair
value reserve relating to that asset is transferred to prot or loss.
NOTES TO THE FINANCIAL STATEMENTS
For the nancial year ended 30 June 2013
2. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Impairmentofnon-nancialassets(cont’d)
(b) Intangible assets
Property and equipment
Investments in subsidiaries and associated companies (cont’d)