Fees paid on the establishment of loan facilities

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Unformatted text preview: ransaction costs) and the redemption amount being recognised in the income statement over the period of the borrowings using the effective interest rate method. Fees paid on the establishment of loan facilities that are yield related are included as part of the carrying amount of the loans and borrowings. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve (12) months after the reporting date. 33 Wellcom Group Limited Notes to the Consolidated Financial Statements 2. Summary of significant accounting policies (continued) For personal use only g) Borrowing costs Borrowing costs are expensed as they are incurred. Wellcom Group Limited does not currently hold qualifying assets but, if it did, the borrowing costs directly associated with this asset would be capitalised (including any other associated costs directly attributable to the borrowing and temporary investment income earned on the borrowing). h) Cash and cash equivalents Cash and cash equivalents comprise cash on h...
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