Page 115 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

6.25.2 Financial liabilities

A. Classification and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through
profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments
in an effective hedge, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.

i) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at fair value through profit or loss. Gains
or losses on liabilities held for trading are recognized in the statement of profit or loss. Financial
liabilities designated upon initial recognition at fair value through profit or loss are designated at
the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not
designated any financial liability as at fair value through profit or loss.

ii) Loans and borrowings
This is the category most relevant to the Company. After initial recognition, interest-bearing loans
and borrowings are subsequently measured at amortized cost using the EIR method. Gains and
losses are recognized in the statement of profit or loss when the liabilities are derecognized as well
as through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the
statement of profit or loss.

This category generally applies to interest-bearing loans and borrowings.

B. Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition
of a new liability. The difference in the respective carrying amounts is recognized in the statement
of profit or loss.
6.25.3 Offsetting of financial assets and liabilities
Financial assets and financial liabilities are set off and the net amount is reported in the financial
statements when there is a legally enforceable right to set off and the Company intends either to settle
on a net basis, or to realize the assets and to settle the liabilities simultaneously.

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