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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
81
3.
Summary of significant accounting policies (cont’d)
(g) Financial assets (cont’d)
(iii) Impairment of financial assets (cont’d)
(1) Trade and other receivables and other financial assets carried at amortised
cost (cont’d)
The carrying amount of the financial asset is reduced by the impairment loss
directly for all financial assets with the exception of receivables, where the
carrying amount is reduced through the use of an allowance account. When a
receivable becomes uncollectible, it is written off against the allowance account.
If in a subsequent period, the amount of the impairment loss decreases and the
decrease can be related objectively to an event occurring after the impairment
was recognised, the previously recognised impairment loss is reversed to the
extent that the carrying amount of the asset does not exceed its amortised cost
at the reversal date. The amount of reversal is recognised in profit or loss.
(iv) Reclassification of financial assets
The Group and the Company may choose to reclassify non-derivative assets out of
the financial assets at FVTPL category, in rare circumstances, where the financial
assets are no longer held for the purpose of selling or repurchasing in the short term.
In addition, the Group and the Company may also choose to reclassify financial assets
that would meet the definition of loans and receivables out of the financial assets
at FVTPL or AFS financial assets if the Group and the Company have the intention
and ability to hold the financial assets for the foreseeable future or until maturity.
Reclassifications are made at fair value as at the reclassification date, whereby the
fair value becomes the new cost or amortised cost, as applicable.
For a financial asset reclassified out of the AFS financial assets, any previous gain
or loss on that asset that has been recognised in equity is amortised to the profit
or loss over the remaining life of the asset using the effective interest method. Any
difference between the new amortised cost and the expected cash flows is also
amortised over the remaining life of the asset using the effective interest method. If
the asset is subsequently determined to be impaired, then the amount recorded in
equity is recycled to the profit or loss.