81 / 140
Asia Media Group Berhad
►
Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
80
3.
Summary of significant accounting policies (cont’d)
(g) Financial assets (cont’d)
(ii) Derecognition (cont’d)
Regular way purchases or sales are purchases or sales of financial assets that
require delivery of assets within the period generally established by regulation or
convention in the marketplace concerned. All regular way purchases and sales of
financial assets are recognised or derecognised on the trade date i.e., the date that
the Group or the Company commits to purchase or sell the asset.
(iii) Impairment of financial assets
The Group and the Company assess at each reporting date whether there is any
objective evidence that a financial asset is impaired. A financial asset or a group of
financial assets is deemed to be impaired if and only if, there is objective evidence
of impairment as a result of one or more events that has occurred after the initial
recognition of the asset (an incurred loss event) and that loss event(s) has an impact
on the estimated future cash flows of the financial asset or the group of financial
assets that can be reliably estimated.
(1) Trade and other receivables and other financial assets carried at amortised
cost
To determine whether there is objective evidence that an impairment loss on
financial assets has been incurred, the Group and the Company consider factors
such as the probability of insolvency or significant financial difficulties of the
debtor and default or significant delay in payments. For certain categories of
financial assets, such as trade receivables, assets that are assessed not to be
impaired individually are subsequently assessed for impairment on a collective
basis based on similar risk characteristics. Objective evidence of impairment
for a portfolio of receivables could include the Group’s or the Company’s past
experience of collecting payments, an increase in the number of delayed
payments in the portfolio past the average credit period and observable
changes in national or local economic conditions that correlate with default on
receivables.
If any such evidence exists, the amount of impairment loss is measured as
the difference between the asset’s carrying amount and the present value of
estimated future cash flows discounted at the financial asset’s original effective
interest rate. The impairment loss is recognised in profit or loss.