Announcement PDF ASX Announcement 30 SEPTEMBER 2021 UNAUDITED FY21 ANNUAL ACCOUNTS AND RELIANCE ON ASIC RELIEF Parkway Corporate Limited (“Parkway” or the “Company”) (ASX: PWN) advises that it is relying on the relief granted by each of: • • the Australian Securities and Investments Commission (“ASIC”) in ASIC Corporations (Extended Reporting and Lodgement Deadlines – Listed Entities) Instrument 2020/451 dated 25 May 2020, as amended by ASIC Corporations (Amendment) Instrument 2021/315 dated 27 April 2021 (“ASIC Relief”); and the Australian Securities Exchange (“ASX”) in Class Waiver Decision – Extended Reporting and Lodgment Deadlines dated 3 May 2021 (“ASX Class Waiver”), to extend the date for lodgement of its audited annual accounts for its financial year ended 30 June 2021 (“FY21 Accounts”), as per section 319 of the Corporations Act 2001 (Cth). The Company has elected to rely on the ASIC Relief and ASX Class Waiver in relation to its FY21 Accounts at the request of the Company’s auditors, Ernst & Young, who have advised that due to unforeseen challenges presented by COVID-19 disruptions, certain audit processes and procedures are required to be finalised, before the Company’s audited FY21 Accounts will be ready for lodgment with ASIC and release to the ASX. In accordance with paragraph 2 of the ASX Class Waiver, we note as follows: • • • the Company’s unaudited FY21 Accounts are enclosed with this ASX announcement; the Company expects to be in a position to lodge its audited FY21 Accounts with ASIC, and release such audited FY21 Accounts to the ASX, on or around 16 October 2021; and if, between the date of this ASX Announcement and 16 October 2021, we expect that there will be a material difference between the Company’s unaudited FY21 Accounts and the Company’s audited FY21 Accounts, we will immediately make a further announcement to the market, outlining details of any such material difference. The release of this announcement has been approved by Parkway’s Managing Director, Bahay Ozcakmak. ADDITIONAL INFORMATION For further information or investor enquiries, please contact: Bahay Ozcakmak Alexander Cook General Enquiries Managing Director General Counsel 1300 7275929 solutions@pwnps.com ir@pwnps.com 1300 PARKWAY ABOUT PARKWAY CORPORATE LIMITED Parkway Corporate Limited is an Australian cleantech company focused on developing and implementing, industrial-scale innovative water treatment solutions. Parkway is listed on the Australian Securities Exchange (ASX: PWN) and is emerging as an innovative player in water related sustainability solutions. With significant inhouse technical expertise and established partnerships, Parkway is well-placed to deliver the next generation of wastewater treatment plants, incorporating the company’s portfolio of world-class technologies. Parkway operates through three (3) core business units, comprising: • Parkway Process Solutions (PPS) – Parkway’s primary operating division and an emerging provider of industrial water treatment products, services, solutions and associated technology to customers throughout Australia. PPS has recently established commercial relationships with key water industry participants, including globally recognised OEMs; • Parkway Process Technologies (PPT) – Parkway’s technology development, acquisition, and commercialisation division. PPT owns a portfolio of industrial wastewater treatment technologies, including the patented aMES® and iBC® process technologies. PPT has global aspirations and is supported by a network of strategic partners, including global engineering company Worley; and • Parkway Ventures (PV) – holds a portfolio of project equity and royalty interests, including interests relating to Parkway’s Karinga Lakes Potash Project in the Northern Territory of Australia. Additional information regarding Parkway, including an overview of the corporate structure of Parkway and the companies in its corporate group, can be found at: www.pwnps.com/pages/about-us. SOCIAL MEDIA & EMAIL ALERTS Parkway is committed to communicating with the investment community through all available channels. Whilst the ASX announcements platform remains the most appropriate channel for market-sensitive news about Parkway, investors and other interested parties are also encouraged to: • follow Parkway on LinkedIn, Twitter, Facebook and YouTube; and • subscribe for our email alert service, Parkway News Alerts, on our website (www.pwnps.com). www.parkway-corp.com 30 SEPTEMBER 2021 | ASX ANNOUNCEMENT | 2 Parkway Corporate Limited (Unaudited Financial Accounts) Formerly Known as Parkway Minerals NL A.C.N. 147 346 334 Contents of Unaudited Financial Accounts Page No. Corporate Directory 2 Consolidated Statement of Comprehensive Income 3 Consolidated Statement of Financial Position 4 Consolidated Statement of Changes in Equity 5 Consolidated Statement of Cash Flows 7 Notes to the Consolidated Financial Statements 8 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 Corporate directory Directors: Adrian Griffin Bahay Ozcakmak Patrick Power Richard Beresford Company Secretary: Amanda Wilton-Heald Auditor: Ernst & Young Ernst & Young Building 11 Mounts Bay Road Perth WA 6000 AUSTRALIA Telephone (+61 8) 9429 2222 Facsimile (+61 8) 9429 2436 Share Registry: Advanced Share Registry 160 Stirling Highway Nedlands WA 6009 AUSTRALIA Telephone (+61 8) 9389 8033 Facsimile (+61 8) 9262 3723 Registered and Principal Office Level 1 677 Murray Street West Perth WA 6005 Telephone (+61 8) 9479 5386 Website www.pwnps.com Email info@pwnps.com Stock Exchange Listing Parkway Corporate Limited shares are listed on the Australian Securities Exchange (ASX code: PWN). Solicitors HWL EBSWORTH Lawyers Level 20, 240 St Georges Terrace Perth WA 6000 AUSTRALIA Telephone (+61 8) 6559 6500 Bankers National Australia Bank Ground Floor 100 St Georges Terrace Perth WA 6000 AUSTRALIA Telephone: (+61 8) 9441 9313 2 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021 Note For the year ended 30 June 2021 For the year ended 30 June 2020 $ $ INCOME FROM CONTINUING ACTIVITIES Revenue from contracts with customers Other income Interest Government Grants Movement in fair value of financial asssets 14 238,523 5,927 740 383,968 1,887,292 29,454 1,569 71,000 - 2,516,450 102,023 2,842 999,967 58,633 (215,619) 51,081 53,972 36,016 1,090,524 86,417 9,053 171,338 134,508 608,789 12,747 215,204 559,473 30,175 26,946 419,704 35,660 309,153 - PROFIT/(LOSS) BEFORE INCOME TAX Income Tax Expense 343,564 - (2,421,674) - NET PROFIT/(LOSS) FOR THE YEAR 343,564 (2,421,674) 15 11 TOTAL INCOME EXPENSES Loss from the disposal of depreciated assets Fair value movement of financial assets Loss from the disposal of financial assets General & Administration expenses Depreciation Share based payments Exploration Legal Occupancy Remuneration (excluding share based payments) Superannuation expense Share of net losses of associate Interest Expense 11 21 OTHER COMPREHENSIVE INCOME Items that may be subsequently reclassified to profit or loss: Available for sale financial asstes – current year gain/(losses) Equity accounted investments - share of comprehensive income TOTAL OTHER COMPREHENSIVE INCOME TOTAL COMPREHENSIVE LOSS FOR THE YEAR (1,036,746) - - (67,793) (1,036,746) (67,793) (693,182) (2,489,467) 0.02 (0.15) LOSS FOR THE YEAR ATTRIBUTABLE TO: Basic and diluted loss per share (cents per share) 7 The consolidated statement of comprehensive income should be read in conjunction with the accompanying notes. 3 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021 Note CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other assets Inventory Total Current Assets NON CURRENT ASSETS Trade and other receivables Financial assets Plant and equipment Intangible assets Right of use assets Total Non Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions Total Current Liabilities NON CURRENT LIABILITIES Provisions Lease liability Total Non Current Liabilities TOTAL LIABILITIES As at 30 June 2020 $ $ 8 9 9 10 7,452,866 227,321 56,106 671,732 8,411,025 18,617 2,036,646 9 11 12 16 13 45,000 286,614 3,749,586 490,947 4,572,147 12,983,172 5,000 1,199,370 26,481 3,283,299 4,514,150 6,550,796 17 18 509,586 100,886 610,472 382,056 20,961 403,017 18 28,761 494,988 523,749 1,134,221 403,017 11,848,951 6,147,779 35,352,074 895,123 (24,398,246) 11,848,951 28,867,382 2,022,207 (24,741,810) 6,147,779 NET ASSETS EQUITY Contributed Equity Reserves Accumulated losses TOTAL EQUITY As at 30 June 2021 19 20 2,001,380 16,649 The consolidated statement of financial position should be read in conjunction with the accompanying notes. 4 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 Contributed equity Accumulated Losses Share and Option Based Payment Reserve $ $ $ $ Financial Asset Reserve Foreign Currency translation Reserve $ Partly Paid Shares Reserve Total $ $ 23,159,732 (22,320,136) 722,726 1,036,746 67,793 - 2,666,861 Loss for the year Other comprehensive income (net of tax) - (2,421,674) - - - - (2,421,674) Equity accounted investments - share of other comprehensive income - - - - (67,793) (67,793) Total comprehensive loss for the year - (2,421,674) - - (67,793) (2,489,467) Transactions with owners in their capacity as owners: Shares issued Share issue transaction costs Share and option based payments Partly paid shares issued 5,765,912 (241,379) 183,117 - - 107,348 32,087 - - - 123,300 5,765,912 (134,031) 215,204 123,300 Balance at 30 June 2020 28,867,382 (24,741,810) 862,161 1,036,746 - 123,300 6,147,779 Balance at 1 July 2019 The consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 5 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2021 Contributed equity Accumulated Losses Share and Option Based Payment Reserve $ $ $ $ $ $ Financial Asset Reserve Partly Paid Shares Reserve Total 28,867,382 (24,741,810) 862,161 1,036,746 123,300 6,147,779 Loss for the year Other comprehensive income (net of tax) Available for sale financial assets – Current year gain/(losses) - 343,564 - - - 343,564 - - - (1,036,746) - (1,036,746) Total comprehensive loss for the year - 343,564 - (1,036,746) Transactions with owners in their capacity as owners: Shares issued Share issue transaction costs Share and option based payments Partly paid shares issued 7,046,280 (615,988) 54,400 - - 125,281 (215,619) - - - 7,046,280 (490,707) (161,219) - Balance at 30 June 2021 35,352,074 (24,398,246) 771,823 - 123,300 11,848,951 Balance at 1 July 2020 (693,182) The consolidated statement of changes in equity should be read in conjunction with the accompanying notes. 6 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021 $ For the year ended 30 June 2020 $ 143,788 11,576 (2,334,549) (671,248) (426,287) 383,968 741 (2,892,011) 117,230 (1,705,912) 99,041 1,535 (1,488,106) INVESTING ACTIVITIES Purchase of plant and equipment Proceeds from sale of financial assets Proceeds from sale of plant and equipment NET CASH FLOWS FROM INVESTING ACTIVITIES (283,192) 2,049,916 6,800 1,773,524 (17,766) 274,866 257,100 FINANCING ACTIVITIES Proceeds from issue of shares Share issue costs NET CASH FLOWS FROM FINANCING ACTIVITIES 7,046,280 (476,307) 6,569,973 3,233,000 (121,595) 3,111,405 5,451,486 2,001,380 1,880,399 120,981 7,452,866 2,001,380 For the year ended 30 June 2021 Note OPERATING ACTIVITIES Payments from customers Other Receipts Payments to suppliers and employees Purchase of inventory Payments for acquisition of Multi-wet Government grants Interest received NET CASH FLOWS USED IN OPERATING ACTIVITIES NET INCREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at the beginning of the year CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 10 16 25 8 The consolidated statement of cash flows should be read in conjunction with the accompanying notes. 7 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 Notes to Financial Statements Note 1: Corporate information The financial report of Parkway Corporated Limited (the “Company” or “Parkway”) and its controlled entity (the “consolidated entity” or the “Group”) for the year ended 30 June 2021. Parkway Corporate Limited is a company limited by shares incorporated in Australia whose share are publicly traded on the Australian Securities Exchange (ASX). The nature of operations and principal activities of the Consolidated Entity are described in the directors’ report. Note 2: Statement of significant accounting policies (a) Basis of preparation The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Accounting Standards and Interpretations and complies with other requirements of the law. Parkway Corporate Limited is a for-profit entity for the purpose of preparing the financial statements. The accounting policies detailed below have been consistently applied throughout the year presented unless otherwise stated. The financial report has also been prepared on a historical cost basis with the exception of equity instrument at fair value through profit and loss. Cost is based on the fair values of the consideration given in exchange for assets. The financial report is presented in Australian dollars. The company is a listed public company, incorporated in Australia and operating in Australia. The entity’s principal activity is developing brine processing technology and providing water treatment related products and services. The consolidated financial statements provide comparative information in respect of the previous period. (b) Adoption of new revised or amending accounting standards and interpretations The Group has adopted all of the new or amended Accouning Standards and Interpreataions issued by the Australian Accounting Standards Board (the AASB) that are mandatory for the current annual reporting period. Adoption of these Standards and Interpretations did not have a material impact on the financial statements. (c) Statement of compliance The financial report complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS). 8 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 Notes to Financial Statements Note 2: Statement of significant accounting policies (continued) (d) Critical accounting estimates and judgements The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the year in which the estimate is revised if it affects only that year or in the year of the revision and future years if the revision affects both current and future years. Share-based payment transactions The Company measures the share-based payment transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 21. Recovery of deferred tax assets Deferred tax assets are recognised for deductible temporary differences only when management considers that it is probable that sufficient future tax profits will be available to utilise those temporary differences. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits over the next two years together with future tax planning strategies. (e) Share-based payment transactions Employees (including senior executives) of the Company receive remuneration in the form of share-based payment transactions, whereby employees render services as consideration for equity instruments (equitysettled transactions). The cost of equity-settled transactions is recognised, together with a corresponding increase in other capital reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company’s best estimate of the number of equity instruments that will ultimately vest. The statement of comprehensive incomeexpense or credit for a period represents the movement in cumulative expense recognised as at the beginning and end of that period and is recognised in equity based payments expense (Note 21). No expense is recognised for awards that do not ultimately vest, except for equity-settled transactions for which vesting are conditional upon a market or non-vesting condition. These are treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled transaction award are modified, the minimum expense recognised is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognised for any modification that increases the total fair value of the share based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification. 9 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 Notes to Financial Statements Note 2: Statement of significant accounting policies (continued) (e) Share-based payment transactions (continued) When an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. This includes any award where nonvesting conditions within the control of either the entity or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph. The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share (further details are given in Note 7). (f) Going concern This report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and settlement of liabilities in the normal course of business. The Consolidated entity has incurred a net profit after tax for the year ended 30 June 2021 of $343,564(2020: loss $2,421,674) and experienced net cash outflows from operating activities of $2,892,011(2020: $1,488,106). As at 30 June 2021 the consolidated entity had cash and cash equivalents of $7,452,866 (2020: $2,001,380). The Directors have reviewed the Consolidated entity’s financial position and are of the opinion that the use of the going concern basis of accounting is appropriate as they believe the Consolidated entity will be successful in securing additional funds through equity issues. The financial report does not contain any adjustments relating to the recoverability and classification of recorded assets or to the amounts or classification of recorded assets or liabilities that might be necessary should the Consolidated entity not be able to continue as a going concern. (g) Plant & equipment Plant and equipment is stated at historical cost less accumulated depreciation and any accumulated impairment in value. Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows: Plant and equipment – over 2 to 15 years Impairment The carrying values of plant and equipment are reviewed for impairment when impairment indicators exist under the accounting standards. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. If any indication exists of impairment and where the carrying values exceed the estimated recoverable amount, the assets or cash-generating units are written down to their recoverable amount. The recoverable amount of plant and equipment is the greater of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Derecognition An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the statement of comprehensive income in the period the item is derecognised. 10 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 Notes to Financial Statements (continued) Note 2: Statement of significant accounting policies (continued) (h) Income tax Current tax assets and liabilities for the current year and prior periods are measured at amounts expected to be recovered from or paid to the taxation authorities based on the current year’s taxable income. The tax rates and tax laws used for computations are enacted or substantively enacted by the balance date. Deferred income tax is provided on all temporary differences at balance date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences except where the deferred income tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss. The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised. Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date. Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive income. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. Tax Consolidation Parkway Corporate Limited and its 100% owned subsidiaries have entered into tax consolidated group which takes effect from 1 July 2016. Parkway Corporate Limited is the head entity of the tax consolidated group. (i) GST Revenues, expenses and assets are recognised net of the amount of GST except: • where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and • receivables and payables are stated with the amount of GST included. 11 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 Notes to Financial Statements (continued) Note 2: Statement of significant accounting policies (continued) (i) GST (continued) The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statement of financial position. Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. (j) Provisions and employee benefits Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement. Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance date. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the time value of money and the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs. Employee leave benefits i. Wages and salaries, annual leave and sick leave Liabilities for wages and salaries including non-monetary benefits, annual leave and accumulating sick leave due to be settled within 12 months of the reporting date are recognised in provisions in respect of employees’ services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. ii. Long service leave The liability for long service leave is recognised and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to the expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. (k) Cash and cash equivalents Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. 12 Parkway Corporate Limited (Unaudited Financial Accounts) A.C.N. 147 346 334 Notes to Financial Statements (continued) Note 2: Statement of significant accounting policies (continued) (l) Trade and other receivables Trade receivables are initially recognised at their transaction price and other receivables at fair value. Receivables that are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest are classified and subsequently measured at amortised cost. Receivables that do not meet the criteria for amortise