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FoR BetteR RetuRns Annual Report 2022 157

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.8 Financial Liabilities (continued)

FVTPL

financial liabilities at fVtpl include financial derivatives that do not satisfy the hedge accounting criteria.
financial derivatives are measured at fair value, whereby the gains or losses are recognised in profit or loss.
exchange differences are included in the net gains or losses on derivatives.
Other Financial Liabilities

borrowings are derecognised from the statement of financial position upon the discharge, cancellation or expiry
of the obligation specified in the contract. the difference between the carrying amount of a financial liability that
was derecognised or transferred to another party and the consideration paid, including any non-cash assets
transferred or liabilities assumed, if any, is recognised in profit or loss.

fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent
that it is probable that some or all of the facility will be drawn down. in this case, the fee is deferred until the
occurrence of the draw-down. in the event that there is no evidence that it is probable that some or all of the
facility will be drawn down, the fee is capitalised as pre-payment for liquidity services and amortised over the
period of the facility to which it relates.
2.9 Derecognition Of Financial Assets And Liabilities

the group and KWap derecognise a financial asset when the contractual cash flows from the financial asset expire
or when the rights to receive the contractual cash flows of the financial assets are transferred in a transaction
in which substantially all the risks and rewards of ownership are also transferred. any interest in the transferred
financial assets that is created or retained by the group and KWap is recognised as a separate asset or liability.

a financial liability is derecognised from the statement of financial position upon the discharge, cancellation or
expiry of the obligation specified in the contract by the group and KWap.

2.10 Cash And Cash Equivalents

cash and cash equivalents comprise cash on hand, cash at bank and deposits with financial institutions that are
readily convertible to known amount of cash, which are subject to an insignificant risk of changes in value, net of
bank overdrafts. cash equivalents include short term deposits placement with maturity not more than 90 days.