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Notes to the financial statements
31 December 2014
Bursa Malaysia
•
Annual Report 2014
106
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(e) Financial assets (cont’d.)
(ii) Loans and receivables
Financial assets with fixed or determinable payments that are not quoted in an active market are classified as loans and receivables.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method. Gains and losses are
recognised in profit or loss through the amortisation process and when the loans and receivables are impaired or derecognised.
Loans and receivables are classified as current assets, except for those having maturity dates later than 12 months after the financial year end;
these are classified as non-current.
(iii) HTM investments
Financial assets with fixed or determinable payments and fixed maturity are classified as HTM when the Group and the Company have the
positive intention and ability to hold the investments to maturity.
Subsequent to initial recognition, HTM investments are measured at amortised cost using the effective interest method. Gains and losses are
recognised in profit or loss through the amortisation process and when the HTM investments are impaired or derecognised.
HTM investments are classified as non-current assets, except for those having maturity within 12 months after the financial year end; these are
classified as current.
(iv) AFS financial assets
AFS financial assets are financial assets that are designated as such or are not classified in any of the three preceding categories.
After initial recognition, AFS financial assets are measured at fair value. Any gains or losses from changes in fair value of the financial assets
are recognised in other comprehensive income, except that impairment losses, foreign exchange gains and losses on monetary instruments
and interest calculated using the effective interest method are recognised in profit or loss. The cumulative gain or loss previously recognised in
other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment when the financial asset is derecognised.
Interest income calculated using the effective interest method is recognised in profit or loss. Dividends on an AFS equity instrument are recognised
in profit or loss when the Group and the Company’s right to receive payment is established.
AFS financial assets which are not expected to be realised within 12 months after the financial year end are classified as non-current assets.
A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired. On derecognition of a financial asset
in its entirety, the difference between the carrying amount and the sum of the consideration received and any cumulative gain or loss that had been
recognised in other comprehensive income is recognised in profit or loss.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by
regulation or convention in the marketplace concerned. All regular way purchases and sales of financial assets are recognised or derecognised on the
settlement date, i.e. the date that the asset is delivered to or by the Group and the Company.