Investments in marketable securities (shares in other corporations) are classified as ‘available for sale'. Investments intended to be held for an indefinite period of time, which may be sold in response to needs for liquidity or changes in interest rates, are classified as available-for-sale; these are included in non-current assets unless management has the express intention of holding the investments for less than 12 months from the balance sheet date or unless they will need to be sold to raise operating capital, in which case they are included in current assets. Management determines the appropriate classification of its investments at the time of the purchase and re-evaluates such designation on a regular basis.

All purchases and sales of investments are recognised on the trade date, which is the date that Bougainville Copper Limited (BCL) commits to purchase or sell the asset. Cost of purchase includes transaction costs. Available-for-sale investments are subsequently carried at fair value. Realised and unrealised gains and losses arising from changes in the fair value of available-for-sale investments are included in the income statement in the period in which they arise.

Investments in treasury bills issued by the Bank of Papua New Guinea are classified under cash and cash equivalents. These are all intended to be held to maturity, which is typically one to three months. These are measured at cost with accrued interest included in other debtors.

2003 Annual Report