less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the balance sheet. 

## (k) TRAdE RECEIVABLES 

trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for doubtful debts. 

the collectability of trade receivables is reviewed on an on-going basis. debts, which are known to be uncollectible, are written off. a provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired. the amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. the amount of the provision is recognised in the income statement. 

## (L) INVENTORIES 

Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted average cost method and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. net realisable value is the estimated selling price in the ordinary course of business, less applicable variable selling expenses. 

## (M) INVESTMENTS ANd OThER FINANCIAL ASSETS 

the Group classifies its investments in the following categories: loans and receivables, and financial assets at fair value through profit or loss. the classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at the initial recognition and re-evaluates this designation at every reporting date. 

## (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 arise when the Group provides money, goods or services directly to a debtor with no intention of selling the receivable. they are included in current assets, except for those with maturities greater than 12 months after the balance sheet date which are classified as non-current assets. 

## (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 categorised as held for trading unless they are designated as hedges. assets in this category are classified as current assets. 

Financial assets carried at fair value through profit or loss are initially recognised at fair value, and transaction costs are expensed in the income statement. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Group has transferred substantially all risks and rewards of ownership. loans and receivables are carried at amortised cost using the effective interest method. 

Gains or losses arising from changes in the fair value of ‘financial assets at fair value through profit or loss’ are presented in the income statement, except for foreign exchange movements on monetary assets, which are recognised in the income statement within ‘finance costs – net’. dividend income from financial assets at fair value through profit or loss is recognised in the income statement as part of other income when the Group’s right to receive payments is established. 

the Group assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. 

## (N) dERIVATIVES 

derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re- measured to their fair value. the method of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. the Group designates certain derivatives as either; (1) hedges of the fair value of recognised assets or liabilities or a firm commitment (fair value hedge); or (2) hedges of highly probable forecast transactions (cash flow hedges). 

the Group documents at the inception of the transaction the relationship between hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various hedge transactions. the Group also documents its assessment, both at hedge inception and on an on-going basis, of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items. 

