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ASIA MEDIA GROUP Berhad
Annual Report 2016
78
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.5 Impairment of non-financial assets (cont’d)
Impairment losses are recognised in profit or loss except for assets that have been
previously revalued where the revaluation was taken to other comprehensive income.
In this case, the impairment is also recognised in other comprehensive income up to the
amount of any previous revaluation.
An impairment loss in respect of goodwill is not reversed. For other financial assets, an
assessment is made at each reporting date as to whether there is any indication that
previously recognised impairment losses may no longer exist or may have decreased. A
previously recognised impairment loss is reversed only if there has been a change in the
estimates used to determine the asset's recoverable amount since the last impairment
loss was recognised. If that is the case, the carrying amount of the asset is increased
to its recoverable amount. That increase cannot exceed the carrying amount that would
have been determined, net of depreciation or amortisation, had no impairment loss been
recognised previously. Such reversal is recognised in profit or loss.
3.6 Financial assets
(i) Initial recognition and subsequent measurement
Financial assets are recognised in the statements of financial position when, and
only when, the Group or the Company becomes a party to the contractual provisions
of the financial instrument, i.e. the trade date.
When financial assets are recognised initially, they are measured at fair value plus
directly attributable transaction costs, except in the case of financial assets recorded
at fair value through profit or loss.
The Group and the Company determine the classification of their financial assets at
initial recognition, and the categories include financial assets at fair value through
profit or loss, loans and receivables, held-to-maturity investments and available-for-
sale financial assets.
(1) Financial assets at fair value through profit or loss (“FVTPL”)
Financial assets are classified as FVTPL if they are held for trading or are
designated as such upon initial recognition. Financial assets held for trading
are derivatives (including separated embedded derivatives) or financial assets
acquired principally for the purpose of selling in the near term.