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Annual Report 2016
ASIA MEDIA GROUP Berhad
79
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.6 Financial assets (cont’d)
(i) Initial recognition and subsequent measurement (cont’d)
(1) Financial assets at fair value through profit or loss (“FVTPL”) (cont’d)
For financial assets designated at FVTPL, upon initial recognition the following
criteria must be met:
•
the designation eliminates or significantly reduces the inconsistent
treatment that would otherwise arise from measuring the assets or
liabilities or recognising gains or losses on them on a different basis.
•
the assets and liabilities are part of a group of financial assets, financial
liabilities or both, which are managed and their performance evaluated
on a fair value basis, in accordance with a documented risk management
or investment strategy.
Subsequent to initial recognition, financial assets at FVTPL are measured at fair
value. Any gains or losses arising from changes in fair value are recognised in
profit or loss. Net gains or net losses on financial assets at FVTPL do not include
exchange differences, interest and dividend income. Exchange differences,
interest and dividend income on financial assets at FVTPL are recognised
separately in profit or loss as part of other losses or other income.
Financial assets at FVTPL could be presented as current or non-current.
Financial assets that are held primarily for trading purposes are presented as
current whereas financial assets that are not held primarily for trading purposes
are presented as current or non-current based on the settlement date.
The Group and the Company have not designated any financial assets as
FVTPL.
(2) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market are classified as loans and receivables. Loans and
receivables are initially recognised at fair value including direct and incremental
transaction costs.