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Annual Report 2016
ASIA MEDIA GROUP Berhad
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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)
(4) Available-for-sale (“AFS”) financial assets
AFS financial assets are financial assets that are designated as AFS or are not
classified in any of the three preceding categories.
After initial recognition, AFS financial assets are subsequently measured at fair
value. Any gains or losses from changes in fair value of the financial assets
are recognised in other comprehensive income, except that impairment losses,
foreign exchange gains and losses on monetary instruments and interest income
calculated using the effective interest method are recognised in profit or loss.
The cumulative gain or loss previously recognised in other comprehensive
income is reclassified from equity to profit or loss as a reclassification adjustment
when the financial asset is derecognised. Dividends onAFS financial assets are
recognised in profit or loss when the Group or the Company's right to receive
payment is established.
Investments in equity instruments whose fair value cannot be reliably measured
are measured at cost less impairment loss.
AFS financial assets are classified as non-current assets unless they are
expected to be realised within 12 months after the reporting date.
The Group and the Company have not designated any financial assets as AFS
financial assets.
(ii) Derecognition
A financial asset is derecognised when the contractual right to receive cash flows
from the asset has expired and the Group or the Company has transferred its rights
to receive cash flows from the financial asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a “pass
through” arrangement; and either:
(1) the Group or the Company has transferred substantially all the risks and rewards
of the financial asset, or
(2) the Group or the Company has neither transferred nor retained substantially
all the risks and rewards of the financial asset, but has transferred control of
the financial asset.