The LGU’s financial assets include: cash and short-term deposits; and
other receivables.
Subsequent measurement
The subsequent measurement of financial assets depends on their
classification.
Derecognition
The LGU derecognizes a financial asset or, where applicable, a part of a
financial asset or part of a group of similar financial assets when:
a) The rights to receive cash flows from the asset have expired or is
waived; and
b) The LGU has transferred its rights to receive cash flows from the
asset or has assumed an obligation to pay the received cash flows
in full without material delay to a third party; and either: (a) the
LGU has transferred substantially all the risks and rewards of the
asset; or (b) the LGU has neither transferred nor retained
substantially all the risks and rewards of the asset, but has
transferred control of the asset.
Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IPSAS 29 are classified as
financial liabilities at fair value through surplus or deficit or loans and
borrowings, as appropriate. The LGU determines the classification of its
financial liabilities at initial recognition.
All financial liabilities are recognized initially at fair value and, in the case
of loans and borrowings.
The LGU’s financial liabilities include trade and other payables, bank
overdrafts, loans and borrowings.
Subsequent measurement
The measurement of financial liabilities depends on their classification.
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