Interfront 2023 Annual Report

International Frontier Technologies SOC Ltd Trading as Interfront Financial Statements for the year ended 31 March 2023 108 INTERFRONT ANNUAL REPORT 2023 Summary of Significant Accounting Policies 1.6 Statutory receivables Identification 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 receivablemeans 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.