Interfront Annual Report 2022

PART E: FINANCIAL INFORMATION 91 International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2022 1.4 Financial Instruments (continued) The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: Class Category Finance lease obligation Financial liability measured at amortised cost Payables from exchange transactions Financial liability measured at amortised cost 1.5 Statutory Receivables Identification The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto: Statutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlement by another entity in cash or another financial asset. Carrying amount is the amount at which an asset is recognised in the statement of financial position. The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised. Nominal interest rate is the interest rate and/or basis specified in legislation, supporting regulations, or similar means. The transaction amount for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means. Recognition The entity recognises statutory receivables when the definition of an asset is met and when it is probable that the future economic benefits or service potential associated with the asset will flow to the entity and the transaction amount can be measured reliably: Initial measurement The entity initially measures statutory receivables at their transaction amount. Subsequent measurement The entity measures statutory receivables after initial recognition using the cost method. Under the cost method, the initial measurement of the receivable is changed subsequent to initial recognition to reflect any: • Interest or other charges that may have accrued on the receivable (where applicable); and • Amounts derecognised. Derecognition The entity derecognises a statutory receivable, or a part thereof, when: • The rights to the cash flows from the receivable are settled, expire or are waived.