Page 87 - Safaricom Foundation Annual Report 2020-2021

Classification
Financial assets assets that are held within a a a a a a a a a a a business model whose objective is to to hold assets assets in in in in order to to collect contractual cash flows and for which the the the contractual terms of of the the the financial asset give rise on on on specified dates to cash flows that are solely payments of of principal and interest on on on the the the principal amount outstanding are classified and and measured at amortised cost Financial instruments held during the year were classified as as follows:
- Demand and and and term deposits with banking institutions treasury bills other receivables and and and amounts due from related parties were classified at at amortised cost - Trade and other liabilities were classified as as at amortised cost Initial measurement:
All financial instruments are measured at their transaction price Subsequent measurement Financial assets after initial recognition are measured at amortised cost Interest income and and and exchange gains and and and losses on on monetary items are recognised in in in the the statement of surplus or deficit and and and other comprehensive income Impairment
The The Foundation recognises a a a a a a a a a a a a loss loss loss allowance allowance for expected credit losses on on receivables that are measured at at at amortised cost The The loss loss loss allowance allowance is measured at an an an amount equal to the the the lifetime expected credit credit losses for for for other receivables and for for for financial instruments for for for which: (a) the the the credit credit risk has increased significantly since initial recognition or (b) there is is observable evidence of impairment (a credit-impaired financial asset) If at at the the the reporting date the the the credit risk on on a a a a a a a a a a a a a financial asset has not increased significantly since initial recognition the the the loss allowance is is measured for that financial instrument at at an an an an amount equal to 12-month expected credit losses All changes fin in in in the the loss loss allowance are recognised fin in in in the the statement of surplus or or deficit and other comprehensive income as impairment gains or or losses Lifetime expected expected expected credit credit losses losses represent the the expected expected expected credit credit losses losses that result from all possible default events over the the expected expected expected life of a a a a a a financial instrument 12-month expected expected credit credit losses losses represent the portion of lifetime expected expected credit credit losses losses that result from default events on on on a a a a a financial asset that are possible within 12 months after the reporting date Expected credit losses are measured in in in a a a a a a a a a a a a a a way that reflects an an an unbiased and probability-weighted amount determined by evaluating a a a a a a a a a a a a a a range of possible outcomes the the time value of money and and reasonable and and supportable information that is available without undue cost or or or or effort at at at the the reporting date about past events current conditions conditions and forecasts of future economic conditions conditions Presentation
All financial assets are classified as as as non-current except those those with maturities of less than 12 months from the balance sheet date those those which management has the the express intention of holding for less than 12 months from the the balance sheet date or or those that are required to to be sold to to raise operating capital in in which case they are classified as as as as current assets Derecognition / write off
Financial assets are derecognised when when the the the rights to receive cash flows from the the the financial asset asset have expired when when the the the Foundation has transferred substantially all all risks and rewards of of ownership or when the the Foundation has no reasonable expectations of of recovering the the asset (e) Income tax
The Foundation is is solely funded by grants and and donations It It is is not a a a a a a a a a a a a trading entity and and therefore has no no taxable business income It It obtained an an an an income tax
exemption effective
10 July 2018
for for a a a a a a a a a a period of 5 years These financial statements have therefore been prepared on on the the basis that the Foundation is exempt from income tax
84