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Unformatted text preview: nition depends on whether they are classified as fair value through profit and loss or “other financial
Financial assets and financial liabilities at fair value through profit and loss include financial assets and
financial liabilities that are held for trading or designated upon initial recognition as at fair value through
profit and loss. These financial instruments are measured at fair value with changes in fair values
recognized in the consolidated statement of operations. Financial assets classified as available-for-sale are
measured at fair value, with changes in fair values recognized in OCI, except when there is objective
evidence that the asset is impaired, at which point the cumulative loss that had been previously recognized
in OCI is recognized within the consolidated statement of operations. Financial assets classified as
held-to-maturity and loans and receivables are measured subsequent to initial recognition at amortized
cost using the effective interest method. Financial liabilities, other than financial liabilities classified as fair
value through profit and loss, are measured in subsequent periods at amortized cost using the effective
Cash and cash equivalents, restricted cash and short-term investments are designated as fair value through
profit and loss and are measured at cost, which approximates fair value. Trade receivables and certain
other assets are designated as loans and receivables. Long-term investments in equity securities, where the
Company cannot exert significant influence, are designated as available-for sale. Accounts payable and
accrued liabilities and long-term debt are classified as other financial liabilities.
Derivative assets and liabilities include derivative financial instruments that do not qualify as hedges, or are
not designated as hedges and are classified as fair value through profit and loss.
The Company formally documents all relationships between hedging instruments and hedged items, as well
as its risk management objectives and strategies for undertaking hedge transactions. This process includes
linking all derivatives to specific...
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This document was uploaded on 03/30/2014.
- Spring '14