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Unformatted text preview: ed or determinable payments. Financial assets available-for-sale
consist of non-derivative assets designated as available for sale or
assets that are not classified in one of the other categories.
The Group has financial liabilities classified in the following
categories: as financial liabilities at fair value through profit or loss
and financial liabilities at amortised cost. Financial liabilities at fair
value through profit or loss consist of liabilities held for trading and include derivatives. Financial liabilities at amortised cost consist of
liabilities that are not a part of the category at fair value through
profit or loss.
The financial instruments are recognised in the Group’s statement
of financial position as soon as the Group becomes a party to
the contractual provisions of the instrument, using trade date
accounting. Financial assets and liabilities are offset and the net
amount presented in the statement of financial position when the
Group has the intention and legally enforceable right to settle
the contracts net, otherwise the financial assets and liabilities are
Trade receivables and other current and non-current
Trade receivables and other current and non-current financial
assets include trade receivables, other financial non-current
interest-bearing and non-interest-bearing assets (including bonds
and commercial papers with original maturity beyond three months
and excluding capital contribution to the Telenor Pension Fund,
which is a part of the class equity securities). These assets are part
of the category loans and receivables and are measured on initial
recognition at fair value and subsequently measured at amortised
cost using the effective interest rate method adjusted for provision
for any impairment. Impairment for estimated irrecoverable amounts
is recognised in the income statement when a loss event and
objective evidence that the asset is impaired, exist. The impairment
is calculated by taking into account the historic evidence of the level
of bad debt experienced for customer types and the aging of the
receivable balance. Individual trade receivables are impaired when
management assess them not to be wholly or partially collectible.
Equity securities include available for sale investments and capital
contribution to Telenor Pension Fund that are a part of the category
financial assets available-for-sale, and assets held for trading that
are a part of the category financial assets at fair value through profit
or loss. Equity securities in the category financial assets available-forsale are initially measured at fair value plus directly attributable
transaction costs, and are subsequently measured at fair value.
unrealised gains and losses arising from changes in fair value
are recognised directly in other comprehensive income until the
investment is disposed of or is determined to be impaired, at which
time the cumulative gain or loss previously recognised in other
comprehensive income is recognised in the income statement
for the period. Equity securities available for sale are considered
impaired and an impairment loss is taken to the income statement if
the reduction in value is substantial or prolonged. Impairment losses
recognised for equity investments classified as available-for-sale
are not subsequently reversed through the income statement.
Equity securities in the category financial assets at fair value
through profit or loss are initially and subsequently measured at
fair value. Gains and losses arising from changes in fair value are
recognised in the income statement on the line net change in fair
value of financial instruments at fair value through profit or loss.
Cash and cash equivalents
Cash and cash equivalents include cash, bank deposits, fixed rate
bonds and commercial paper with original maturity of three months
or less. /page 30/
telenor annual report 2011
notes to the financial statements / telenor group Trade payables and other non-interest bearing financial liabilities
Trade payables and other non-interest bearing financial liabilities
include trade payables, liabilities to associated companies and other
current and non-current non-interest bearing financial liabilities.
These liabilities are a part of the category financial liabilities at
amortised cost and are initially recognised in the statement of
financial position at fair value, and subsequently measured at
amortised cost using the effective interest rate method.
Interest-bearing liabilities include bonds and commercial papers,
bank loans and overdrafts, and are classified in the category financial
liabilities at amortised cost. These liabilities are initially measured at
fair value net of transaction costs, and are subsequently measured
at amortised cost using the effective interest-rate method. In
addition, where fair value hedge accounting is applied the hedged
liabilities are also adjusted for gains and losses attributable to the
risk being hedged. On extinguishment of debt, in whole or i...
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This document was uploaded on 03/21/2014.
- Spring '14