Appendix 1 - Financial Statements
Note 1: Summary of Significant Accounting Policies
1.12 Financial Liabilities
PSR classifies its financial liabilities as measured at amortised cost.
Financial liabilities are recognised and derecognised upon ‘trade date’.
Financial liabilities measured at amortised cost
Financial liabilities measured at amortised cost, including borrowings, supplier and other payables are initially measured at fair value, net of transaction costs.
Financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period.