77 / 140
Asia Media Group Berhad
►
Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
76
3.
Summary of significant accounting policies (cont’d)
(g) Financial assets
(i) Initial recognition and subsequent measurement
Financial assets are recognised in the statements of financial position when, and
only when, the Group or the Company becomes a party to the contractual provisions
of the financial instrument, i.e. the trade date.
When financial assets are recognised initially, they are measured at fair value plus
directly attributable transaction costs, except in the case of financial assets recorded
at fair value through profit or loss.
The Group and the Company determine the classification of their financial assets at
initial recognition, and the categories include financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity investments and available-for-
sale financial assets.
(1) Financial assets at fair value through profit or loss (“FVTPL”)
Financial assets are classified as FVTPL 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.
For financial assets designated at FVTPL, upon initial recognition the following
criteria must be met:
•
the designation eliminates or significantly reduces the inconsistent
treatment that would otherwise arise from measuring the assets or
liabilities or recognising gains or losses on them on a different basis.
•
the assets and liabilities are part of a group of financial assets, financial
liabilities or both, which are managed and their performance evaluated
on a fair value basis, in accordance with a documented risk management
or investment strategy.