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110 SINGAPORE AIRLINES

Notes to the Financial Statements

31 March 2012

2 Summary of Signiﬁcant Accounting Policies (continued)

(k) Financial assets (continued)

(iii)฀ Held-to-maturity฀investments

Non-derivative ﬁnancial assets with ﬁxed or determinable payments and ﬁxed maturity are classiﬁed as held-to-

maturity when the Group has the positive intention and ability to hold the investment to maturity. Subsequent

to initial recognition, held-to-maturity investments are measured at amortised cost using the effective interest

method, less impairment. Gains and losses are recognised in the proﬁt and loss account when the held-to-

maturity investments are derecognised or impaired, and through the amortisation process.

(iv)฀ 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.

(l) Investments

Investments held by the Group are classiﬁed as available-for-sale or held-to-maturity. Investments classiﬁed as

available-for-sale are stated at fair value, unless there is no active market for trading. Fair value is determined in the

manner described in Note 37(b). Investments with no active market for trading are stated at cost less accumulated

impairment losses as their fair value cannot be reliably measured. Held-to-maturity investments are measured at

amortised cost using the effective interest method, less impairment. The accounting policy for both categories of

ﬁnancial assets is stated in Note 2(k).

(m) 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(k).

Further details on the accounting policy for impairment of ﬁnancial assets are stated in Note 2(p).

(n) Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, deposits in banks and short-term, highly liquid investments that

are readily convertible to known amounts of cash and which are subject to an insigniﬁcant risk of changes in value.

For the purpose of the consolidated statement of cash ﬂows, cash and cash equivalents consist of cash on hand

and deposits in banks. The accounting policy for this category of ﬁnancial assets is stated in Note 2(k), under loans

and receivables.