Page 89 - Annual_Report_2020_2021

At initial recognition, the Agency measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit or loss (FVPL), transaction costs
Subsequent measurement of debt instruments depends on the Agency’s business model
date on which the Agency commits to purchase or sell the asset. Financial assets are
derecognised when the rights to receive cash flows from the financial assets have expired
or have been transferred, and the Agency has transferred substantially all the risks and
cost. Interest income from these financial assets is included in finance income using the
effective interest rate method. Any gain or loss arising on derecognition is recognised
other
for managing the asset and the cash flow characteristics of the asset. There is one
Amortised cost: Assets that are held for collection of contractual cash flows where those
cash flows represent solely payments of principal and interest are measured at amortised
Regular way purchases and sales of financial assets are recognised on trade-date, the
The classification depends on the entity’s business model for managing the financial
The Agency reclassifies debt investments when and only when its business model for
The Agency classifies its financial assets as those to be measured at amortised cost.
and
loss
measurement category into which the Agency classifies its debt instruments.
or
profit
that are directly attributable to the acquisition of the financial asset.
of
statement directly in profit or loss and presented in other gains/(losses). Impairment losses are the in item The Agency assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For accoun
AGENCY FOR VOLUNTEER SERVICE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Summary of significant accounting policies (Continued) Other financial assets (a) Classification assets and the contractual terms of the cash flows. managing those assets changes. (b) Recognition and derecognition rewards of ownership. (c) Measurement Debt instruments line separate a as presented comprehensive income. (d)

2. 2.6

software

of
development

and
the acquisition Agency represent systems and applications and are stated at cost less accumulated amortisation (where the Amortisation of intangible assets with finite useful lives is charged to profit or loss on a straight- Intangible assets are not amortised when their useful lives are assessed to be indefinite. Any conclusion that the useful life of an intangible asset is indefinite is reviewed annually to determine wh

AGENCY FOR VOLUNTEER SERVICE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 Summary of significant accounting policies (Continued) Intangible assets the of assets Intangible estimated useful life is finite) and impairment losses. line basis over the assets’ estimated useful lives. Impairment of non-financial assets to which the asset belongs. loss and other comprehensive income. recognised for the asset in prior yea

2. 2.4 2.5