NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
67
ANNUAL REPORT 2015
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.13 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 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.
The fair value of investment securities that are actively traded in organised financial markets is determined by reference to
quoted market prices at the close of business at the end of the reporting period. For investment securities where there is
no active market, fair value is estimated using a valuation technique based on certain assumptions that are not supported
by observable market prices or rates. Management believes the estimated fair values, resulting from the valuation technique
which are recorded in the balance sheet are reasonable and the most appropriate, at the end of the reporting period. These
investment securities shall, however, bemeasured at cost less impairment losses if their fair values cannot be reliably estimated.
2.14 BASE INVENTORY
Base inventory is the base recirculating inventory in the smelting process. The value represents the lower of estimated
recoverable amounts and cost of 381 tonnes of metallic tin content.
