86
ASIAMEDIAGROUPBERHAD
(813137-V)
Notes to theFinancial Statements
(Cont’d)
4) SIGNIFICANTACCOUNTINGPOLICIES
(Cont’d)
j)
Financial Instruments
(Cont’d)
ii) Financial instrument categories and subsequentmeasurement
(Cont’d)
Financial liabilities
(Cont’d)
b) Other financial liabilities
Otherfinancial liabilities, includingborrowings,are initiallymeasuredat fairvalue,
net of transactioncostsandaresubsequentlymeasuredat amortisedcost using
the effective interest method, with interest expense recognised on an effective
yieldbasis.
Theeffective interestmethod is amethodof calculating theamortised cost of a
financial liabilityandof allocating interest expenseover the relevant period.The
effective interest rate is the exactly discounts estimated future cash payments
through theexpected lifeof thefinancial liability,or (whereappropriate)ashorter
period, to the net carrying amount on initial recognition.
The Group derecognises financial liabilities when, and only when, the Group’s
obligations are discharged, cancelled or they expire. The difference between the
carrying amount of the financial liability derecognised and the consideration paid or
payable is recognised in profit or loss.
iii) Impairment of FinancialAssets
TheGroupassessesat each reportingdatewhether there isobjectiveevidence that a
financial assetoragroupof financial assets is impaired. In thecaseofequitysecurities
classified as available-for-sale, a significant or prolonged decline in the fair value of
the security below its cost is taken as evidence that the securities are impaired. If
any such evidence exists for available-for-sale financial assets, the cumulative loss
-measured as the difference between the acquisition cost and the current fair value,
less impairment loss on that financial asset previously recognised inprofit or loss - is
removed from equity and recognised in profit or loss. Impairment losses recognised
in profit or loss on equity instruments are not reversed through profit or loss.
k) Impairment of Non-FinancialAssets
At the end of each reporting period, the Group reviews the carrying amounts of its non-
current assets todeterminewhether there isany indication that thoseassetshavesuffered
an impairment loss. If any such indication exists, the recoverable amount of the asset is
estimated in order to determine the extent of the impairment loss (if any). Where it is not
possible to estimate the recoverable amount of an individual asset, the Group estimates
the recoverable amount of the cash-generating unit towhich the asset belongs.
