Financial assets are classified in the following measurement categories:
The Group classifies a financial asset based on the Group business model as regards managing financial assets and characteristics resulting from contractual cash flows for the financial asset (‘SPPI criterion’). The Group reclassifies investments in financial assets only if the model of managing the assets changes.
Except for some trade receivables, at the moment of initial recognition, the Group measures a financial asset at its fair value, which in the event of financial assets not measured at fair value through profit or loss is increased for the transaction costs, which may be directly assigned to the purchase of those financial assets.
Financial assets are derecognised from the books of account if the rights to obtain cash flows from the financial assets are transferred, and the Group transferred basically the whole risk and all benefits on account of their possession.
For the purpose of measurement after initial recognition, financial assets are classified in one of the four categories:
A financial asset is measured at amortised cost if the following conditions are jointly fulfilled:
In the category of financial assets measured at amortised cost the Group assigns:
Interest income is calculated with the use of the effective interest rate, and is recognised in profit or loss in the interest item of finance income.
A financial asset is measured at fair value through other comprehensive income if the following conditions are jointly fulfilled:
Interest income, FX differences, profits or losses on account of impairment are recognised in profit or loss and calculated in the same way, as for the financial assets measured at amortised cost. Other changes in goodwill are recognised through other comprehensive income. At the moment of derecognition of a financial asset, the total profit or loss previously recognised in other comprehensive income is reclassified from the ‘Equity’ item to profit or loss.
Interest income is calculated with the use of the effective interest rate, and is recognised in profit or loss in the interest item of finance income.
In the presented period, the Group did not classify any items in the category of debt instruments measured at fair value through other comprehensive income.
At the moment of initial recognition, the Group may make an irrevocable election regarding recognition in other comprehensive income of future fair value changes of the investment in a capital instrument which is not held for trading, and which is not a contingent consideration reflected by the acquiring company within business combination, to which IFRS 3 applies. Such election is made separately for each capital instrument. The accumulated profits or losses recognised in other comprehensive income are not subject to reclassification to profit or loss. Dividends are recognised in profit or loss at the moment the company becomes entitled to receive dividend, unless the dividend is clearly a regaining of a part of the costs of investment.
In the presented period, the Group did not classify any items in the category of equity instruments measured at fair value through other comprehensive income.
Financial assets which do not fulfil the criteria to be measured at amortised cost or at fair value through other comprehensive income are measured at fair value through profit or loss.
The profit or loss on debt investments measured at fair value is recognised in the statement of profit or loss.
Dividend is recognised in profit or loss at the moment the Company becomes entitled to receive dividend.
If the Group:
the financial asset and the financial liability are set off and are recognised in the balance sheet at net amount.
In the presented periods, the Group did not classify any items in the categories of: debt instruments – financial assets measured at fair value through other comprehensive income; and equity instruments – financial assets measured at fair value through other comprehensive income.
