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ASIA MEDIA GROUP Berhad
Annual Report 2016
80
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)
(2) Loans and receivables (cont’d)
Subsequent to initial recognition, loans and receivables are measured at
amortised cost using the effective interest method, less any accumulated
impairment losses. Gains and losses are recognised in profit or loss when
the loans and receivables are derecognised or impaired, and through the
amortisation process.
Loans and receivables are classified as current assets, except for those having
maturity dates later than 12 months after the reporting date which are classified
as non-current.
Financial assets classified in this category include cash and bank balances,
trade receivables, sundry receivables, tax refundable, refundable deposits and
advances due from staff.
(3) Held-to-maturity (“HTM”) investments
Non-derivative financial assets with fixed or determinable payments and fixed
maturity are classified as HTM investments when the Group or the Company
has the positive intention and ability to hold the investment to maturity.
Subsequent to initial recognition, HTM investments are measured at amortised
cost using the effective interest method. Gains and losses are recognised in
profit or loss when the HTM investments are derecognised or impaired, and
through the amortisation process.
HTM investments are classified as non-current assets, except for those having
maturity within 12 months after the reporting date which are classified as current.
The Group and the Company have not designated any financial assets as HTM
investments.