4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
j)
Financial Instruments
(Cont’d)
ii) Financial instrument categories and subsequent measurement
The Group categories financial instruments as follows:
Financial assets
The Group classifies its financial assets in the following categories: at fair value
through profit or loss, held-to-maturity, loans and receivables and available-for-
sale. The classification depends on the purpose for which the financial assets were
acquired. Management determines the classification at initial recognition.
a) Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or
loss if they are held for trading or are designated as such upon initial recognition.
Financial assets held for trading are derivatives (including separated embedded
derivatives) or financial assets acquired principally for the purpose of selling in
the near term.
Subsequent to initial recognition, financial assets at fair value through profit or
loss 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 fair value through profit or loss do not include exchange differences,
interest and dividend income. Exchange differences, interest and dividend
income on financial assets at fair value through profit or loss are recognised
separately in profit or loss as part of other losses or other income.
Financial assets at fair value through profit or loss 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.
Investment in quoted securities are designated as fair value through profit or
loss on initial recognition.
b) Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed
or determinable payments and fixed maturity dates that the Group has the
positive intent and ability to hold to maturity. Subsequent to initial recognition,
held-to-maturity investments are measured at amortised cost using the effective
interest method less any impairment.
Asia Media Group Berhad Annual Report 2014
92
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
