for the year ended 31 December 2016
NOTES TO THE
FINANCIAL STATEMENTS
Baker Technology Limited
-
93
-
2.
Summaryofsignificantaccountingpolicies (cont’d)
2.9
Financial instruments (cont’d)
(b)
Financial liabilities
Initial recognition andmeasurement
Financial liabilities are recognisedwhen, andonlywhen, theGroupbecomes aparty to thecontractual
provisionsof the financial instrument.TheGroupdetermines theclassificationof its financial liabilities
at initial recognition.
All financial liabilities are recognised initially at fair value, plus, in the case of financial liabilities not
at fair value through profit or loss, directly attributable transaction costs.
Subsequentmeasurement
After initial recognition, financial liabilities that are not carried at fair value through profit or loss are
subsequently measured at amortised cost using the effective interest method. Gains and losses are
recognised inprofit or losswhen the liabilities arederecognised, and through theamortisationprocess.
De-recognition
A financial liability is derecognisedwhen the obligation under the liability is discharged or cancelled
or expired. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantiallymodified, such an
exchange or modification is treated as a derecognition of the original liability and the recognition of
a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
