66 NOTEs TO THE FINANCIAL sTATEMENTs  1. sUMMARY OF sIGNIFICANT ACCOUNTING POLICIEs (CONTINUED) (ii) oPeRATinG leASeS (M) AVAILABLE FOR SALE INVESTMENTS (N) INVESTMENTS AND OTHER FINANCIAL ASSETS (iii) oneRouS PRoPeRTy CoSTS (J) CASH AND CASH EQUIVALENTS (i) FinAnCiAl ASSeTS AT FAiR VAlue THRouGH  PRoFiT And loSS (K) TRADE AND OTHER RECEIVABLES (L) INVENTORIES (ii) loAnS And ReCeiVABleS (iii) oTHeR FinAnCiAl ASSeTS FAIRFAx MEDIA LIMITED AND CONTROLLED ENTITIES FOR THE PERIOD ENDED 30 JUNE 2013 Leases where the lessor retains substantially all the risks  and benefits of ownership of the asset are classified as  operating leases. Net rental payments, excluding contingent payments, are  recognised as an expense in the income statement on a  straight-line basis over the period of the lease. Property leases are considered to be an onerous contract  if the unavoidable costs of meeting the obligations under  the contract exceed the economic benefits expected to be  received under it. Where a decision has been made to vacate  the premises or there is excess capacity and the lease is  considered to be onerous, a provision is recorded.  Available for sale financial assets are investments in listed  equity securities in which the Group does not have significant  influence or control. They are stated at fair value based  on current quoted prices and unrealised gains and losses  arising from changes in the fair value are recognised in the  asset revaluation reserve. The assets are included in non- current assets unless management intends to dispose of the  investment within twelve months of the reporting date. The Group classifies its investments in the following  categories: financial assets at fair value through profit or loss,  loans and receivables, held to maturity investments and  available for sale financial assets. The classification depends  on the purpose for which the investments were acquired.  Management determines the classification of its investments  at initial recognition and, in the case of assets classified  as held to maturity, re-evaluates this designation at each  reporting date.  The consolidated entity classifies and measures its  investments as follows: Cash and cash equivalents includes cash on hand, deposits  held at call with financial institutions and other short term  investments with original maturities of three months or less  that are readily convertible to cash and subject to insignificant  risk of changes in value. Bank overdrafts are shown within interest bearing liabilities in  current liabilities on the balance sheet. This category has two sub-categories: financial assets held  for trading and those designated at fair value through profit  and loss on initial recognition. The policy of management is  to designate a financial asset at fair value through profit and  loss if there exists the possibility it will be sold in the short  term and the asset is subject to frequent changes in fair  value. These assets are measured at fair value and realised  and unrealised gains and losses arising from changes in fair  value are included in the income statement in the period in  which they arise.  Trade receivables are initially recognised at fair value and  subsequently measured at amortised cost which is the  original invoice amount less an allowance for any uncollectible  amount. Collectability of trade receivables is reviewed on an  ongoing basis and a provision for doubtful debts is made  when there is objective evidence that the Group will not be  able to collect the debts. Interest receivable on related party loans is recognised on an  accruals basis. Inventories including work in progress are stated at the  lower of cost and net realisable value. The methods used to  determine cost for the main items of inventory are: Loans and receivables are non-derivative financial assets  with fixed or determinable payments that are not quoted  in an active market and are included in receivables and  other financial assets in the balance sheet. These assets  are measured at amortised cost using the effective  interest method. These assets are non-derivatives that are either designated  or not classified in any of the other categories and measured  at fair value. Any unrealised gains and losses arising from  changes in fair value are included in equity, impairment losses  are included in the income statement.  • raw materials (comprising mainly newsprint and paper on  hand) are assessed at average cost and newsprint and  paper in transit by specific identification cost; • finished goods and work in progress are assessed as  the cost of direct material and labour and a proportion  of manufacturing overheads based on normal  operating capacity; and • in the case of other inventories, cost is assigned by the  weighted average cost method.