76
ASIAMEDIAGROUPBERHAD
(813137-V)
Notes to theFinancial Statements
(Cont’d)
3) FINANCIALRISKMANAGEMENTOBJECTIVESANDPOLICIES
(Cont’d)
Fair values
The fair value of financial instruments refer to the amount at which the instrument could be
exchanged fororsettledbetweenknowledgeableandwillingparties inanarm’s length transactions.
Thecarryingamountsof thefinancial assetsandfinancial liabilitiesas reported in thestatements
of financial positionas at 31st December 2013approximate their fair values of theseassets and
liabilities because they areeither within thenormal credit terms or they have short-termmaturity
period.
Capital RiskManagement
The primary objective of theGroup’s capital management is to safeguard theGroup’s ability to
continueasagoingconcern, and tomaintainanoptimal capital structuresoas toprovide returns
for shareholders.
TheGroupmanages itscapital structureandmakesadjustments to it in lightofchanges ineconomic
conditions.Tomaintainoradjust thecapital structure, theGroupmayadjust thedividendpayment
toshareholders, returncapital toshareholdersor issuenewshares.Therewerenochangesmade
in the objectives, policies or processes compared to the previous financial year.
TheGroup is not subject to any externally imposed capital requirements.
4) SIGNIFICANTACCOUNTINGPOLICIES
a) BasisofAccounting
Thefinancial statementsarepreparedunder thehistorical cost conventionunlessotherwise
indicated in theaccountingpoliciesbelow.Historical cost isgenerallybasedon the fairvalue
of the consideration given in exchange for assets.
Fair value is theprice that wouldbe received to sell anasset or paid to transfer a liability in
an orderly transaction betweenmarket participants at themeasurement date, regardless
of whether that price isdirectlyobservableor estimatedusinganother valuation technique.
In estimating the fair value of an asset or a liability, the Group takes into account the
characteristicsof theasset or liability ifmarket participantswould take thosecharacteristics
into account when pricing the asset or liability at themeasurement date.
In addition, for financial reporting purposes, fair valuemeasurements are categorised into
Level 1, 2or 3basedon thedegree towhich the inputs to the fair valuemeasurementsare
observable and the significance of the inputs to the fair valuemeasurement in its entirety,
which are described as follows:
(i) Level 1 inputsarequotedprices (unadjusted) inactivemarkets for identical assetsor
liabilities that the entity canaccess at themeasurement date;
(ii) Level 2are inputs,other thanquotedprices includedwithinLevel 1, thatareobservable
for the asset or liability, either directly or indirectly; and
(iii) Level 3 inputs are unobservable inputs for the asset or liability.
