Page 38 - Annual Report 2017

December 31, 2017
(expressed in United States Dollars)

2 Summary of significant accounting policies ... continued

Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and non-restricted balances with the banks and other financial institution and,
other short-term highly liquid investments with original maturities of three months or less.
Trade receivables
Trade receivables are carried at fair value and subsequently measured at amortised cost using effective interest method, less provision
made for impairment of these receivables. A provision for impairment of trade receivables is established when there is objective
evidence that the Company will not be able to colleet ail amounts due according to the original terms of receivables. The amount of
the provision is the difference between the carrying amount and recoverable amount. The amount of the provision is recognised in
the statement of comprehensive income.
Supplies inventory
Supplies inventory consists of printing and stationery supplies which are directly used in providing the services to the members.
Financial assets
The Company classifies its financial assets in the following categories: loans and receivables, held·to·maturity, and available·for-sale.
The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of
its financial assets at initial recognition and re·evaluates this designation at every reporting date.
la) Loans and reeeivab/es
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market and where management has no intention of trading. They are included in current assets, except for maturities greater
than 12 months after the balance sheet date in which case, these are classified as non·current assets. The Company's cash in
banks, term deposits, and government bonds are included in this category.
lb) He/d-to-maturity
Held-to·maturity investments are non·derivative financial assets with fixed or determinable payments and fixed maturities that
the Company's management has the positive intention and ability to hold to maturity. They are included in non·current assets,
except for those with maturities less than 12 months from the balance sheet date, which are classified as cunent assets.
Held·to-maturity investments are carried at amortised cost using the effective interest method.
le) Avai/ab/e-for-sa/e
Available-for-sale investments are non·derivative financial assets that are either designated in this category or not classified into
any other categories. They are included in non-current assets unless management intends to dispose of the investment within
12 months of the balance sheet date.

Purchases and sales of financial assets are recognised on trade date -the date on which the Company commits to purchase or sell the
asset. Financial assets are initially recognised at fair value plus transaction costs. Financial assets are derecognised when the rights to
receive cash flows from investments have expired or have been transferred and the Company has transferred substantially ail the risks
and rewards of ownership. Available·for-sale investments are subsequently carried at fair value. Unrealised gains and losses arising
from changes in the fair value of investments classified as available-for-sale are recognised in other comprehensive income.
When securities classified as available-for-sale are sold or impaired, the accumulated fair value adjustments are included in the
statement of comprehensive income as gains and losses from investment securities.
If the market for a financial asset is not active (and for unlisted securities), the Company establishes fair value by using valuation
techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same
and discounted cash flow analysis.

The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group or financial
assets is impaired. ln the case of equity securities classified as available-for·sale, a significant or prolonged decline in the fair value of
the security below its cost is considered in determining whether the securities are impaired. If su ch evidence exists for
available·for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and the current fair
value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity and recognised
in the statement of comprehensive income. Impairment losses recognised in the statement of comprehensive income on equity
instruments are not reversed through the statement of comprehensive income.