## NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 

## Financial instruments 

## Recognition and measurement 

The Company’s financial assets and liabilities include cash, term deposits, restricted cash, accounts receivable, accounts payable and accrued liabilities, and financial instruments. Due to the short-term nature of the Company’s financial instruments, fair values approximate carrying values unless otherwise stated. 

## Classification 

At initial recognition, the Company classifies its financial instruments in the following categories depending on the purpose for which the instruments were acquired: 

(i) Loans and receivables: Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets. Loans and receivables are initially recognized at the amount expected to be received less, when material, a discount to reduce the loans and receivables to fair value. Subsequently, loans and receivables are measured at amortized cost using the effective interest method less a provision for impairment. 

The Company’s loans and receivables are comprised of cash, term deposits, restricted cash and trade receivables. 

(ii) Financial assets at fair value through profit or loss: Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are also categorized as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if expected to be settled within 12 months, otherwise they are classified as non-current. 

The Company’s financial assets at fair value through profit or loss consist of unrealized gains on forward exchange contracts. 

(iii) Financial liabilities at amortized cost: Financial liabilities at amortized cost are classified as current liabilities if payment is due within twelve months. Otherwise, they are presented as non- current liabilities. Accounts payable and accrued liabilities are initially recognized at the amount required to be paid less, when material, a discount to reduce the payables and accrued liabilities to fair value. Subsequently, accounts payable and accrued liabilities are measured at amortized cost using the effective interest method. 

The Company’s financial liabilities at amortized cost include accounts payable and accrued liabilities. 

(iv) Financial liabilities at fair value through profit or loss: Financial liabilities at fair value through profit or loss are classified as current liabilities if payment is due within twelve months. Otherwise, they are presented as non-current liabilities. 

The Company’s financial liabilities at fair value through profit or loss are comprised of unrealized losses on forward exchange contracts and financial guarantee contracts. 

