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114 About HRC Value Creation Management Discussion Leadership
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2023

2 SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION (continued)
2.16 BORROWINGS AND BORROWING COSTS (continued)

(a) Borrowings (continued)
Borrowings are removed from the statement of financial position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in profit or loss as other income or finance costs.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of
the liability for at least 12 months after the end of the reporting period.

(b) Borrowing costs
General and specific borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale,
are added to the cost of those assets, until such time the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
2.17 OFFSETTING FINANCIAL INSTRUMENTS
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when there
is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise
the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and
must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy.
There are no financial assets and liabilities subject to offsetting for the financial year ended 31 December 2023 and
31 December 2022.
2.18 REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured. Revenue is measured at the fair value of consideration received or receivable.
Revenue from contracts with customers
(a) Sale of oil products, partially refined oil products and feedstocks

The Company refines and sells refined and partially refined oil products as well as feedstocks to customers.
Additionally, the Company also sells crude oil to its customers. Sales are recognised upon transfer of control of the
goods to the customer. This is when products are delivered to the customer, the customer has full discretion over
the channel and price to sell the products and there is no unfulfilled obligation that could affect the customer’s
acceptance of the products. Delivery occurs when the products have been shipped to the specific location,
the risk of loss has been transferred to the customer, and either the customer has accepted the products in accordance
with the sales contract or the Company has objective evidence that all criteria for acceptance have been satisfied.
No element of financing is deemed present as the sales are made with a credit term of 30 days, which is consistent
with market practice.
A receivable is recognised when the products are delivered as this is the point in time that the consideration is
unconditional because only the passage of time is required before the payment is due.