142 FINANCIAL STATEMENTS At each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether there is any objective evidence of impairment. If there is objective evidence, the recoverable amount is estimated and compared with the carrying amount. If there is objective evidence, the recoverable amount is estimated and compared with the carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss. Financial instruments at fair value All other financial instruments, including other financial assets, including equity instruments that are publicly traded or whose fair value can otherwise be measured reliably, without undue cost or effort, are measured at fair value through profit and loss. Financial instruments at cost Equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably are measured at cost less impairment. This includes equity instruments held in unlisted investments. Trade and other receivables Trade receivables are measured at initial recognition at transaction price and subsequently calculated at amortised cost using the effective interest rate method, less provision for impairment. Appropriate provisions for estimated irrecoverable amounts are recognised in profit or loss when there is objective proof that the assets is irrecoverable. Significant financial problems of the debtor, the likelihood that the debtor will be declared bankrupt or undergo financial restructuring and default on arrears of payments are considered as indicators that trade debtors are subject to impairment. The recognised provisions are calculated as the difference between the asset's carrying amount and the present value of the estimated future cash flow, discounted at the effective interest rate method with initial recognition. Trade and other receivables are classified as financial assets at amortised cost. Other financial assets Other financial assets are recognised initially at the transaction price, including transaction costs except where the asset will subsequently be measured at fair value. Where other financial assets relate to shares that are publicly traded, or where fair values can be measured reliably without undue cost or effort, these assets are subsequently measured at fair value with the changes in fair value being recognised in profit or loss. Other investments are subsequently measured at cost less impairment. Cash and cash equivalents Cash and cash equivalents include cash on hand, demand deposits and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown as a current liability on the statement of financial position. Cash and cash equivalents are classified as financial assets at amortised cost. Trade payables Trade payables are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest rate method. Trade and other payables are classified as financial liabilities at amortised cost. Loans to and from group entities These include loans to and from subsidiaries and related parties which are recognised initially at fair value plus direct transaction costs. Loans to and from related parties are classified as financial assets of liabilities at amortised cost. Derecognition Financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is derecognised when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership or control of the financial assets are transferred.
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