2. Basis of preparation (continued):
(e) Use of estimates and judgements (continued):
(v) Note 17 – Financial instruments and risk management: valuation of financial instruments
Information about critical judgements in applying policies that have the most significant effect on the amounts recognized in the financial statements, include:
(i) The Commission’s determination that they are acting as a principal or agent to a transaction and their presentation of the transaction on a gross or net basis.
3. Significant accounting policies:
The accounting policies set out below have been applied consistently to all years presented in these financial statements.
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(a) Cash and cash equivalents:
Cash and cash equivalents consist of balances with banks and investments with a maturity of approximately three months or less at the date of purchase, unless they are held for investment rather than liquidity purposes, in which case they are classified as an investment.
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(b) Financial instruments:
All financial assets and liabilities of the Commission are classified into one of the following categories: amortized cost; fair value through other comprehensive income; or fair value through income or loss.
The Commission has classified its financial instruments as follows:
Cash and cash equivalents | Amortized cost |
Investment | Fair value through income or loss |
Accounts receivable | Amortized cost |
Investment, sinking fund | Fair value through income or loss |
Accounts payable and accruals | Amortized cost |
Long-term borrowings | Amortized cost |