Singapore Airlines 2010 Annual Report Download - page 105

ANNUAL REPORT 2009/10
103
2 Summary of Significant Accounting Policies (continued)
(l) Financial assets (continued)
(i) Financial assets at fair value through profit and loss
There are two sub-categories: financial assets held for trading, and those designated as fair value through profit
or loss at inception. A financial asset is classified in this category if acquired principally for the purpose of selling
in the short term. Derivatives are also classified under this category unless they are designated as hedging
derivatives. Gains or losses on financial assets held at fair value through profit and loss are recognised in the
profit and loss account.
Assets in this category are classified as current assets if they are either held for trading or are expected to be
realised within 12 months after the end of the reporting period.
(ii) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are
classified as loans and receivables. Such assets are carried at amortised cost using the effective interest method.
Gains and losses are recognised in the profit and loss account when the loans and receivables are derecognised
or impaired, as well as through the amortisation process.
(iii) Available-for-sale investments
Available-for-sale investments are non-derivative financial assets that are either designated in this category,
or not classified in any other categories. After initial recognition, available-for-sale investments are measured
at fair value with gains or losses being recognised in other comprehensive income until the investment is
derecognised or until the investment is determined to be impaired whereby the cumulative gain or loss
previously reported in equity is included in the profit and loss account.
(m) Long-term investments
Long-term investments held by the Group are classified as available-for-sale. As there is no active market for the
trading of these investments and fair value cannot be reliably measured, these investments are stated at cost.
The accounting policy for this category of financial assets is stated in Note 2(l).
(n) Trade debtors and other receivables
Trade debtors, including amounts owing by subsidiary and associated companies, deposits and other debtors are
classified and accounted for as loans and receivables. Other non-current receivables are also classified and accounted
for in the same way. The accounting policy for this category of financial assets is stated in Note 2(l).
Further details on the accounting policy for impairment of financial assets are stated in Note 2(r) below.