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NOTES TO FINANCIAL STATEMENTS
(cont’d)
31 March 2016

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.9 Financial instruments (cont’d)

Financial assets at fair value through profit or loss

An instrument is classified at fair value through profit or loss if it is acquired principally for the purpose of selling in
the short term or is designated as such upon initial recognition. Financial instruments are designated at fair value
through profit or loss if the Group manages such investments and makes purchase and sale decisions based on
their fair value in accordance with the Group’s documented risk management and investment strategies. Upon
initial recognition, attributable transaction costs are recognised in the profit or loss when incurred. Financial
instruments at fair value through profit or loss are measured at fair value, and changes therein are recognised in
the profit or loss.

Financial assets designated at fair value through profit or loss comprise fixed income, quoted equity, unquoted
investments and other investments.

Loans and receivables

Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active
market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent
to initial recognition, loans and receivables are measured at amortised cost using the effective interest method,
less any impairment losses.

Loans and receivables comprise trade and other receivables, student loans, grant receivables and cash and cash
equivalents.

Cash and cash equivalents comprise cash balances and bank deposits.

Impairment of financial assets

A financial asset is assessed at each reporting date to determine whether there is any objective evidence that it
is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events
have had a negative effect on the estimated future cash flows of that asset.

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