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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
78
3.
Summary of significant accounting policies (cont’d)
(g) Financial assets (cont’d)
(i) Initial recognition and subsequent measurement (cont’d)
(3) Held-to-maturity (“HTM”) investments
Non-derivative financial assets with fixed or determinable payments and fixed
maturity are classified as HTM investments when the Group or the Company
has the positive intention and ability to hold the investment to maturity.
Subsequent to initial recognition, HTM investments are measured at amortised
cost using the effective interest method. Gains and losses are recognised in
profit or loss when the HTM investments are derecognised or impaired, and
through the amortisation process.
HTM investments are classified as non-current assets, except for those having
maturity within 12 months after the reporting date which are classified as current.
The Group and the Company have not designated any financial assets as HTM
investments.
(4) Available-for-sale (“AFS”) financial assets
AFS financial assets are financial assets that are designated as AFS or are not
classified in any of the three preceding categories.
After initial recognition, AFS financial assets are subsequently 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 income
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. Dividends onAFS financial assets are
recognised in profit or loss when the Group or the Company’s right to receive
payment is established.
Investments in equity instruments whose fair value cannot be reliably measured
are measured at cost less impairment loss.