Bursa Malaysia • Annual Report 2013
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Financial Reports
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(g) Cash and cash equivalents
Cash and cash equivalents consist of cash at banks and on hand, and short-term deposits used by the Group and the Company in the management
of their short-term funding requirements.
(h) Financial liabilities
Financial liabilities are classified according to the substance of the contractual arrangements entered into and the definition of a financial liability.
Financial liabilities are recognised in the statements of financial position when, and only when, the Group and the Company become a party to
the contractual provisions of the financial instrument. Financial liabilities are classified as either financial liabilities at FVTPL or other financial
liabilities.
(i) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon initial recognition as at FVTPL.
Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This includes derivatives
entered into by the Group and the Company that do not meet the hedge accounting criteria. Derivatives liabilities are initially measured at fair
value and subsequently stated at fair value, with any resultant gains or losses recognised in profit or loss. Net gains or losses on derivatives
include exchange differences.
The Group and the Company do not have any financial liabilities at FVTPL at the current and previous financial year ends.
(ii) Other financial liabilities
Other financial liabilities are recognised initially at fair value plus directly attributable transaction costs and subsequently measured at
amortised cost using the effective interest method.
For other financial liabilities, gains and losses are recognised in profit or loss when the liabilities are derecognised, and through the
amortisation process.
A financial liability is derecognised when the obligation under the liability is extinguished.
When an existing financial liability is replaced by another instrument from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the
recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
Notes to the Financial Statements
31 December 2013
