Company: RTNTF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001628280-25-006642
Chunk: 368

Company: RIO TINTO LTD
Filing Date: 2025-02-20
Form: 20-F
Chunk 368
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 simultaneously, we report the net amount in the consolidated balance sheet. Agreements with derivative counterparties are based on the International Swaps and Derivatives Association master netting agreements that do not meet the criteria for offsetting, but allow for the related amounts to be set-off in certain circumstances. During the year, there were no material amounts offset in the balance sheet. 24 Financial instruments and risk management

Recognition and measurement

We classify our financial assets into those held at amortised cost and those to be measured at fair value either through the profit and loss

(FVTPL) or through other comprehensive income (FVOCI) based on the business model for managing the financial assets and the contractual

terms of the cash flows.

| Classification offinancial asset   | Amortised cost                                                                                                                                                                                                                    | Fair value through profitand loss                                                                                | Fair value through other comprehensive income                                                                                                                                                                                                                |
| Recognition andinitial measurement | At initial recognition, trade receivables that do nothave a significant financing component arerecognised at their transaction price. Otherfinancial assets are initially recognised at fairvalue plus related transaction costs. | The asset is initiallyrecognised at fair value withtransaction costsimmediately expensed tothe income statement. | The asset is initially recognised at fair value.                                                                                                                                                                                                             |
| Subsequentmeasurement              | Amortised cost using the effective interestmethod.                                                                                                                                                                                | Fair value movements arerecognised in the incomestatement.                                                       | Fair value gains or losses on revaluation of such equityinvestments, including any foreign exchange component,are recognised in other comprehensive income. Dividendsare recognised in the income statement when the right toreceive payment is established. |
| Derecognition                      | Any gain or loss on derecognition or modification ofa financial asset held at amortised cost isrecognised in the income statement.                                                                                                | Not applicable.                                                                                                  | When the equity investment is derecognised, there is norecycling of fair value gains or losses previously recognised inother comprehensive income to the income statement.                                                                                   |

Borrowings and other financial liabilities (including trade payables but excluding derivative liabilities) are recognised initially at fair value, net of

transaction costs incurred, and are subsequently measured at amortised cost.

Financial risk management objectives

Our financial risk management objectives are:

– to have in place a robust capital structure to manage the organisation through the commodity cycle

– to allow our financial exposures, mainly commodity price, foreign exchange and interest rates to, in general, float with