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KUWAIT ENERGY plc
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the six months ended 30 June 2014
58
33.
FINANCIAL INSTRUMENTS
Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset
and financial liability are disclosed in note 3 to these consolidated financial statements.
Categories of financial instruments
30.06.2014 30.06.2013 31.12.2013 31.12.2012 31.12.2011
Audited
Unaudited
(Restated)
Audited
(Restated)
Audited
(Restated)
Audited
(Restated)
USD 000’s USD 000’s USD 000’s USD 000’s USD 000’s
Financial assets
Loans and receivables
- Trade and other receivables
159,534
189,486
150,395
201,918
163,812
Cash and bank balances
125,349
29,049
127,594
46,766
38,762
Financial liabilities
At amortised cost
- Trade and other payables
148,846
69,072
89,001
47,228
44,718
- Long-term loans
114,608
-
88,867
60,000
45,000
- Current portion of long term
loans
39,278
125,000
75,649
-
8,000
At fair value through profit
and loss account (FVTPL)
-Designated as FVTPL -
convertible loans
117,122
108,542
112,551
87,244
-
-Derivative financial
instruments
-
327
162
484
750
Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. Financial instruments comprise of financial assets and
financial liabilities.
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
Level 2: inputs other than quoted prices that are observable for assets or liabilities either directly (as prices) or
indirectly (derived from prices); and
Level 3: inputs for assets or liabilities that are not based on observable market data.
Fair value measurement hierarchy for financial assets and financial liabilities that are carried at fair value is as follows:
30 June 2014
Level 1
Level 2
Level 3
Total
USD 000’s
USD 000’s
USD 000’s
USD 000’s
Financial assets measured at fair value
Assets classified as held for sale
-
-
16,114
16,114
Financial liabilities measured at fair value
Liabilities directly associated with assets
classified as held for sale
-
-
7,814
7,814
Financial liabilities at fair value
through profit and loss account (FVTPL):
- Convertible loans
-
-
117,122
117,122