60
GDS Global Limited Annual Report 2015
NOTES TO
FINANCIAL STATEMENTS
As at 30 September 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
In respect of available-for-sale equity instruments, impairment losses previously recognised in
profit or loss are not reversed through profit or loss. Any subsequent increase in fair value after an
impairment loss is recognised in other comprehensive income and accumulated under the heading
of investments revaluation reserves. In respect of available-for-sale debt securities, impairment
losses are subsequently reversed through profit or loss if an increase in the fair value of the
investment can be objectively related to an event occurring after the recognition of the impairment
loss.
Derecognition of financial assets
The Group derecognises a financial asset only when the contractual rights to the cash flows from
the asset expire, or it transfers the financial asset and substantially all the risks and rewards of
ownership of the asset to another entity. If the Group neither transfers nor retains substantially
all the risks and rewards of ownership and continues to control the transferred asset, the Group
recognises its retained interest in the asset and an associated liability for amounts it may have
to pay. If the Group retains substantially all the risks and rewards of ownerships of a transferred
financial asset, the Group continues to recognise the financial asset and also recognises a
collateralised borrowing for the proceeds received.
Financial liabilities and equity instruments
Classification as debt or equity
Financial liabilities and equity instruments issued by the Group are classified according to the
substance of the contractual arrangements entered into and the definitions of a financial liability
and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of
direct issue costs.
Financial liabilities
Financial liabilities are classified as either financial liabilities “at fair value through profit or loss” or
“other financial liabilities”.
Financial liabilities at fair value through profit or loss (“FVTPL”)
Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or
it is designated as at FVTPL.
A financial liability is classified as held for trading if:
It has been incurred principally for the purpose of repurchasing in the near future; or
It is a part of an identified portfolio of financial instruments that the Group manages together
and has a recent actual pattern of short-term profit-taking; or
It is a derivative that is not designated and effective as a hedging instrument.
