Investor Presentaiton
MRF
B)
all the cash flows that the entity expects to receive (i.e., all
cash shortfalls), discounted at the original EIR.
Impairment loss allowance (or reversal) recognised during the
period is recognised as expense/income in the statement of
profit and loss.
Financial Liabilities
The Company's financial liabilities includes borrowings,
trade payable, lease liabilities, accrued expenses and other
payables.
Initial recognition and measurement
All financial liabilities at initial recognition are classified as
financial liabilities at amortized cost or financial liabilities at
fair value through profit or loss, as appropriate. All financial
liabilities are recognised initially at fair value and, in the
case of loans and borrowings and payables, net of directly
attributable transaction costs. Any difference between the
proceeds (net of transaction costs) and the fair value at initial
recognition is recognised in the Statement of Profit and Loss
depending upon the level of fair value.
Subsequent measurement
The subsequent measurement of financial liabilities depends
upon the classification as described below:-
Financial Liabilities classified as Amortised Cost:
Financial Liabilities that are not held for trading and are not
designated as at FVTPL are measured at amortised cost at
the end of subsequent accounting periods. Amortised cost is
calculated by taking into account any discount or premium
on acquisition and fees or costs that are an integral part of the
Effective Interest Rate. Interest expense that is not capitalised
as part of costs of assets is included as Finance costs in the
Statement of Profit and Loss.
Financial Liabilities at Fair value through profit and loss
(FVTPL):
FVTPL includes financial liabilities held for trading and
financial liabilities designated upon initial recognition as
C)
FVTPL. Financial liabilities are classified as held for trading
if they are incurred for the purpose of repurchasing in the
near term. Financial liabilities have not been designated upon
initial recognition at FVTPL.
Derecognition
A financial liability is derecognised when the obligation
under the liability is discharged / cancelled expired. When
an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an
existing liability are substantially modified, such an exchange
or modification is treated as the de recognition of the original
liability and the recognition of a new liability. The difference in
the respective carrying amounts is recognised in the statement
of profit and loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net
amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.
Derivatives
Derivative instruments are initially recognised at fair value
on the date a derivative contract is entered into and are
subsequently re-measured to their fair value at the end of each
reporting period. The accounting for subsequent changes in
fair value depends on whether the derivative is designated as
a hedging instrument, and if so, the nature of the item being
hedged and the type of hedge relationship designated. The
resulting gain or loss is recognised in the Statement of Profit
and Loss immediately unless the derivative is designated and
effective as a hedging instrument and is recognised in Other
Comprehensive Income (OCI). Cash flow hedges shall be
reclassified to profit or loss as a reclassification adjustment in
the same period or periods during which the hedged expected
future cash flows affect profit or loss. If hedge of a forecast
transaction results in the recognition of a non-financial asset
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