4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
j)
Financial Instruments
(Cont’d)
ii) Financial instrument categories and subsequent measurement
(Cont’d)
Financial assets
(Cont’d)
c) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. Loans and
receivables are measured at amortised cost using the effective interest method,
less any impairment. Interest income is recognised by applying the effective
interest rate, except for short-term receivables when the recognition of interest
would be immaterial.
d) Available-for-sale (AFS) financial assets
Available-for-sale financial assets are non-derivatives that are either designated
in this category or not classified in any of the other categories. After initial
recognition, available-for-sale financial assets are measured at fair value.
Any gains or losses from changes in fair value of the financial assets are
recognised in other comprehensive income, except that impairment losses,
foreign exchange gains and losses on monetary instruments and interest
calculated using the effective interest method are recognised in profit or loss.
The cumulative gain or loss previously recognised in other comprehensive
income is reclassified from equity to profit or loss as a reclassification adjustment
when the financial asset is derecognised.
Interest income calculated using the effective interest method is recognised in
profit or loss. Dividends on available-for-sale equity instrument are recognised
in profit or loss when the Company’s right to receive payment is established.
Available-for-sale financial assets are included in non-current assets unless the
investment matures or management intends to dispose of it within 12 months
of the end of the reporting period.
Financial assets are de-recognised when the rights to receive cash flows from the
investments have expired or have been transferred and the Group has transferred
substantially all risks and rewards of ownership.
Asia Media Group Berhad Annual Report 2014
93
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
