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Asia Media Group Berhad
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Annual Report 2015
Notes to the Financial Statements
(continued)
pg.
83
3.
Summary of significant accounting policies (cont’d)
(j) Financial liabilities (cont’d)
(i) Initial recognition and subsequent measurement (cont’d)
(1) Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at FVTPL.
Financial liabilities held for trading include derivatives entered into by the Group
or the Company that do not meet the hedge accounting criteria. Derivative
liabilities are initially measured at fair value and subsequently stated at fair
value, with any resultant gains or losses recognised in profit or loss. Net gains
or losses on derivatives include exchange differences.
The Group and the Company have not designated any financial liabilities at
FVTPL.
(2) Other financial liabilities
The Group’s and the Company’s other financial liabilities include payables and
other liabilities.
Payables are recognised initially at fair value plus directly attributable transaction
costs and subsequently measured at amortised cost using the effective interest
method.
Other liabilities are stated at cost which is the fair value of the consideration
expected to be paid in future for goods and services received.
Financial liabilities are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12 months after
the reporting date.
(ii) Derecognition
A financial liability is derecognised when the obligation under the liability is
extinguished. When an existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition
of the original liability and the recognition of a new liability, and the difference in the
respective carrying amounts is recognised in profit or loss.