Page 176 - UBP - IR2020

FINANCIAL STATEMENTS
Notes to the financial statements
For the year ended June 30 2020
2 ACCOUNTING POLICIES (CONTINUED)
2 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(k) Financial instruments (continued)
Financial liabilities and equity (continued)
Financial liabilities (continued)
Subsequent measurement (continued)
Amortized cost cost is is is calculated by taking into account any discount or or or premium on on acquisition and fees or or or costs that are an an an integral part of of o the the EIR EIR The EIR EIR amortization is included as finance costs in in fin in the the statement of of o profit or or loss This category generally applies to interest-bearing loans and and and borrowings including bank overdraft and and and trade and and and other payables Contract liabilities A contract liability is the the obligation to to to transfer goods or or services to to to a a a a a a a customer for which the the Group has received consideration (or an an amount of consideration consideration is due) from the the customer customer If a a a a a a a customer customer pays consideration consideration before the the Group transfers goods or or services to to the the the customer a a a a a a contract liability is is is is recognised when the the the payment payment is is is is made or or the the the payment payment is is is is due (whichever is is earlier) Contract liabilities are recognised as revenue when the the Group performs under the the contract Derecognition
A financial liability liability is is is derecognized when the the obligation under the the liability liability is is is discharged or or cancelled or or expires When an an an an existing financial liability is is replaced by another from the the the same lender on substantially different terms terms or the the the terms terms of of an an an an existing liability are substantially modified such an an an an exchange or modification is is treated as the the derecognition of of the the original liability liability and the the the recognition
of a a a a a a a new liability liability The difference in in in in the the the respective carrying amounts is recognized in in in in the the the statement of o profit or loss Offsetting financial instruments Financial assets and and financial financial liabilities are offset and and the the net amount is reported in fin in fin the the consolidated statement o of financial financial position if there there is is is a a a a a a currently enforceable legal right to to offset the the the recognised amounts and there there is is is an an intention to to settle on on on a a a a a a a net basis to realise the the assets and settle the the liabilities simultaneously (l) Inventories
Inventory items are valued at the lower of cost and net realisable value value Costs incurred in in in in bringing each product to its present location and conditions are accounted for as follows:
• Raw Materials: Purchase costs on an average cost cost method
• Finished Goods: Costs of direct direct materials and direct direct expenses based on normal operating capacity
Work-in-progress consists of cost incurred on on works performed but not yet completed and invoiced at at the reporting date Net realisable value (NRV) is is the the estimated estimated selling price in in in in the the ordinary course of of business less estimated estimated costs of of completion and the the estimated costs necessary to make the the sale 176 - UBP INTEGRATED REPORT 2020