NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 INTANGIBLE ASSETS (CONT’D)
(e)
MINE RESTORATION, REHABILITATION AND ENVIRONMENTAL EXPENDITURE
Restoration, rehabilitation and environmental expenditure incurred during the production phase of operations is
recognised in profit or loss as part of the cost of production of the mine property concerned.
Significant restoration, rehabilitation and environmental expenditure to be incurred subsequent to the cessation
of production of each mine property is provided based on the present value of the estimated expenditure to be
incurred.
(f)
CLUB MEMBERSHIP
Club memberships acquired separately are measured on initial recognition at cost. Following initial recognition,
club memberships are carried at cost less accumulated impairment losses, if any. Club memberships are amortised
on a straight-line basis over their finite useful lives. The amortisation period and amortisation method are reviewed
at each financial year-end.
2.14 INVESTMENTS IN DEBT AND EQUITY SECURITIES
When investment securities are recognised initially, they are measured at fair value, plus, in the case of investment securities
not at fair value through profit or loss, directly attributable transaction costs.
After initial recognition, investment securities classified as held-for-trading are measured at fair value with any gain or
loss arising from changes in fair value recognised in profit or loss. Investment securities are classified as held-for-trading
if they are acquired principally for the purpose of selling in the near term.
Where the Group has the positive intent and ability to hold debt securities to maturity, they are subsequently measured
at amortised cost. Amortised cost is computed as the amount initially recognised minus principal repayments, plus or
minus the cumulative amortisation using the effective interest method of any difference between the initially recognised
amount and the maturity amount and minus any reduction for impairment or uncollectibility. For investment securities
carried at amortised cost, gains or losses are recognised in profit or loss when the investment securities are de-recognised
or impaired, and through the amortisation process.
Other investment securities held by the Group, only if they are non-derivatives, are classified as available-for-sale (AFS).
After initial recognition, AFS securities are subsequently measured at fair value with any gain or loss arising from changes
in fair value recognised in other comprehensive income, except for impairment losses and foreign exchange gains and
losses on AFS securities that are monetary items which are recognised in profit or loss. When these AFS securities are
de-recognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from
equity to profit or loss as a reclassification adjustment.
All regular way purchases and sales of investment securities are recognised or de-recognised on trade date i.e., the date
that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial
assets that require delivery of assets within the period generally established by regulation or convention in the marketplace
concerned.
69
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
