Page 287 - SAMRC AnnualReport 2025-26

F I NAN C IAL I N F O R MA T I O N

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)

1.8 Financial instruments (continued)

Classification of Financial Liabilities
The entity classifies all financial liabilities as subsequently measured at amortised cost, except for:

(a) Financial liabilities at fair value through surplus or deficit. Such liabilities, including derivatives that
are liabilities, are subsequently measured at fair value.

(b) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition.

Measurement
Initial measurement
Except for, where at initial recognition, the entity measures receivables and payables at their transaction
price if they do not contain a material financing transaction, the entity measures a financial asset or
financial liability at its fair value plus or minus, in the case of a financial asset or a financial liability not at
fair value through surplus or deficit, transaction costs that are directly attributable to the acquisition or
issue of the financial asset or financial liability.

However, if the fair value of the financial asset or financial liability at initial recognition differs from the
transaction price, the entity applies the relevant paragraphs in GRAP 104 (revised 2019).

Despite the above, at initial recognition, the entity measures receivables and payables at their transaction
price if they do not contain a material financing transaction.

Subsequent measurement of financial assets
After initial recognition, the entity measures a financial asset at:
(a) amortised cost;

(b) fair value through surplus or deficit; or
(c) cost.

The entity applies the impairment requirements in paragraphs 5.17 to 5.35 to financial assets that are
measured at amortised cost in accordance with paragraph 4.2 and paragraph 5.36 to financial assets
measured at cost in accordance with paragraph 4.5.

Subsequent measurement of financial liabilities
After initial recognition, the entity measures a financial liability in accordance with the section on
“Classification of Financial Liabilities”.

Fair value measurement
In determining the fair value of a financial asset or a financial liability for the purpose of applying
GRAP 104 (revised 2019), the entity applies paragraphs AG5.35 to AG5.49 of Appendix A.

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