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FINANCIAL REPORTS
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Bursa Malaysia •
Annual Report 2015
NOTES TO THE
FINANCIAL STATEMENTS
31 DECEMBER 2015
2. Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(e) Financial assets
Financial assets 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.
When financial assets are initially recognised, they are measured at fair value, plus, in the case of financial assets not at Fair Value Through
Profit or Loss (“FVTPL”), directly attributable transaction costs.
The Group and the Company determine the classification of financial assets upon initial recognition. The categories include financial assets
at FVTPL, loans and receivables, Held-To-Maturity (“HTM”) investments and AFS financial assets.
(i) Financial assets at FVTPL
Financial assets are classified as financial assets at FVTPL if they are held for trading or are designated as such upon initial recognition.
Financial assets are classified as held for trading if they are acquired principally for sale in the near term or are derivatives that do not
meet the hedge accounting criteria (including separated embedded derivatives).
Subsequent to initial recognition, financial assets at FVTPL are measured at fair value. Any gains or losses arising from changes in fair
value are recognised in profit or loss. Net gains or net losses on financial assets at FVTPL do not include exchange differences, interest
and dividend income. Exchange differences, interest and dividend income on financial assets at FVTPL are recognised separately in
profit or loss as part of other income or other losses.
Financial assets at FVTPL could be presented as current or non-current. Financial assets that are held primarily for trading purposes are
presented as current, whereas financial assets that are not held primarily for trading purposes are presented as current or non-current
based on the settlement date.
The Group and the Company do not have any financial assets at FVTPL at the current and previous financial year ends.
(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 which are classified as non-current.