ANNUALREPORT 2013
85
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
j)
Financial Instruments
(Cont’d)
ii) Financial instrument categoriesand subsequentmeasurement
(Cont’d)
Financial liabilities
Financial liabilitiesareclassifiedaseither financial liabilitiesat fair value throughprofit
or loss or other financial liabilities.
a) Financial liabilitiesat fair value throughprofit or loss
Financial liabilitiesareclassifiedasfinancial liabilitiesat fair value throughprofit
or losswhen the financial liability is either held for trading or it is designated as
financial liabilities at fair value through profit or loss.
Afinancial liability is classified as held for trading if:
a) it has been acquired principally for the purpose of repurchasing it in the
near term; or
b) on initial recognition it ispartofaportfolioof identifiedfinancial instruments
that theGroupmanages together andhasa recent actual patternof short-
term profit-taking; or
c) it is a derivative that is not designated and effective as a hedging
instrument.
Afinancial liabilityother thanafinancial liabilityheld for tradingmaybedesignated
as financial liabilities at fair value through profit or loss upon initial recognition
if:
a) such designation eliminates or significantly reduces a measurement or
recognition inconsistency that would otherwise arise; or
b) the financial liability forms part of a group of financial assets or financial
liabilities or both, which is managed and its performance is evaluated
on a fair value basis, in accordance with the Group’s documented risk
management or investment strategy, and information about the grouping
is provided internally on that basis; or
c) it forms part of a contract containing one or more embedded derivatives,
and MFRS 139 Financial Instruments: Recognition and Measurement
permits the entire combined contract (asset or liability) to be designated
as financial liabilities at fair value through profit or loss.
Financial liabilitiesat fair value throughprofit or lossarestatedat fair value,with
any gains or losses arising on remeasurement recognised in profit or loss. The
net gainor loss recognised inprofit or loss incorporatesany interest paidon the
financial liability and is included in the ‘other gains and losses’ line item in the
statements of comprehensive income.
