Singapore Airlines 2014 Annual Report Download - page 120

118
NOTES TO THE FINANCIAL STATEMENTS
31 March 2014
SINGAPORE AIRLINES
2 Summary of Significant Accounting Policies (continued)
(l) 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, except that impairment losses and
interest are recognised in the profit and loss account. The cumulative gain or loss previously recognised in other
comprehensive income is reclassified from equity to the profit and loss account as a reclassification adjustment
when the investment is derecognised.
(m) 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(l).
(n) Trade debtors and other receivables
Trade debtors, including amounts owing by subsidiary, associated and joint venture 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(q).
(o) 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(l), under loans
and receivables.