4) SIGNIFICANT ACCOUNTING POLICIES
(Cont’d)
j)
Financial Instruments
(Cont’d)
ii) Financial instrument categories and subsequent measurement
(Cont’d)
Financial liabilities
Financial liabilities are classified as either financial liabilities at fair value through
profit or loss or other financial liabilities.
a) Financial liabilities at fair value through profit or loss
Financial liabilities are classified as financial liabilities at fair value through profit
or loss when the financial liability is either held for trading or it is designated as
financial liabilities at fair value through profit or loss.
A financial 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 is part of a portfolio of identified financial instruments
that the Group manages together and has a recent actual pattern of short-
term profit-taking; or
c) it is a derivative that is not designated and effective as a hedging
instrument.
A financial liability other than a financial liability held for trading may be
designated 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.
Asia Media Group Berhad Annual Report 2014
94
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
