83 / 140
Asia Media Group Berhad
►
Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
82
3.
Summary of significant accounting policies (cont’d)
(g) Financial assets (cont’d)
(iv) Reclassification of financial assets (cont’d)
Reclassification is at the election of management, and is determined on an instrument-
by-instrument basis. The Group and the Company do not reclassify any financial
instrument into the FVTPL category after initial recognition.
(h) Cash and cash equivalents
For the purpose of the statements of cash flows, cash and cash equivalents comprise cash
at bank and on hand and demand deposits.
(i) Provisions for liabilities
Provisions for liabilities are recognised when the Group or the Company has a present
obligation (legal or constructive) as a result of a past event, it is probable that an outflow of
economic resources will be required to settle the obligation and the amount of the obligation
can be estimated reliably.
Provisions are reviewed at each reporting date and adjusted to reflect the current best
estimate. If it is no longer probable that an outflow of economic resources will be required
to settle the obligation, the provision is reversed. If the effect of the time value of money
is material, provisions are discounted using a current pre-tax rate that reflects, where
appropriate, the risks specific to the liability. When discounting is used, the increase in the
provision due to the passage of time is recognised as a finance cost.
(j) Financial liabilities
(i) Initial recognition and subsequent measurement
Financial liabilities are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial liability. All financial
liabilities are measured initially at fair value plus directly attributable costs, except in
the case of financial liabilities at FVTPL.
Financial liabilities, within the scope of MFRS 139, are recognised in the statement
of financial position when, and only when, the Group or the Company becomes a
party to the contractual provisions of the financial instrument. Financial liabilities
are classified as either financial liabilities at fair value through profit or loss or other
financial liabilities.