Business
Full Year 2018 Financial Results (Part 2)
Full Year 2018 Financial Results (Part 2).
About this update from Seplat Energy Plc
[{"type":"text","content":"\n \nRNS Number : 9968R SEPLAT Petroleum Development Co PLC 06 March 2019 \n\n \nSeplat Petroleum Development Company Plc\n \nFull Year Results\n \nFor the year ended 31 December 2018\n(Expressed in Naira and US Dollars)\n \nPlease see a print friendly version by clicking on the link below; \nhttp://www.rns-pdf.londonstockexchange.com/rns/9958R_1-2019-3-6.pdf\n \n41.2 IFRS 9 Financial instruments - Impact of adoption\nThe new financial instruments standard, IFRS 9 replaces the provisions of IAS 39. The new standard presents a new model for classification and measurement of assets and liabilities, a new impairment model which replaces the incurred credit loss approach with an expected credit loss approach, and new hedging requirements.\nThe adoption of IFRS 9 Financial Instruments from 1 January 2018 resulted in changes in accounting policies and adjustments to the amounts recognised in the financial statements. The new accounting policies are set out in the notes below. In accordance with the transitional provisions in IFRS 9, comparative figures have not been restated but the impact of adoption has been adjusted through opening retained earnings for the current reporting period.\n41.2.1 Classification and measurement \na) Financial assets\nOn 1 January 2018 (the date of initial application of IFRS 9), the Group's management assessed the classification of its financial assets which is driven by the cash flow characteristics of the instrument and the business model in which the asset is held.\nThe Group's financial assets include cash and bank balances and trade and other receivables. The Group's business model is to hold these financial assets to collect contractual cash flows and to earn contractual interest. For cash and bank balances, interest is based on prevailing market rates of the respective bank accounts in which the cash and bank balances are domiciled. Interest on trade and other receivables is earned on defaulted payments in accordance with the Joint operating agreement (JOA). The contractual cash flows arising from these assets represent solely payments of principal and interest (SPPI).\nCash and bank balances and trade and other receivables that were previously classified as loans and receivables (L and R) are now c...