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ASIA MEDIA GROUP Berhad
Annual Report 2016
82
Notes to the Financial Statements
(continued)
3.
Summary of significant accounting policies (cont’d)
3.6 Financial assets (cont’d)
(ii) Derecognition (cont’d)
When the Group or the Company has transferred its rights to receive cash flows from
a financial asset or have entered into a “pass through” arrangement and has neither
transferred nor retained substantially all the risks and rewards of the financial asset
nor transferred control of the financial asset, the financial asset is recognised to the
extent of the Group or the Company’s continuing involvement in the financial asset.
In that case, the Group or the Company also recognises an associated financial
liability. The transferred financial asset and associated financial liability are measured
on a basis that reflect the rights and obligations that the Group or the Company has
retained.
On derecognition of a financial asset in its entirety, the difference between the carrying
amount and the sum of the consideration received and any cumulative gain or loss
that had been recognised in other comprehensive income is recognised in profit or
loss.
Regular way purchases or sales are purchases or sales of financial assets that
require delivery of assets within the period generally established by regulation or
convention in the marketplace concerned. All regular way purchases and sales of
financial assets are recognised or derecognised on the trade date i.e., the date that
the Group or the Company commits to purchase or sell the asset.
(iii) Impairment of financial assets
The Group and the Company assess at each reporting date whether there is any
objective evidence that a financial asset is impaired. A financial asset or a group of
financial assets is deemed to be impaired if and only if, there is objective evidence
of impairment as a result of one or more events that has occurred after the initial
recognition of the asset (an incurred loss event) and that loss event(s) has an impact
on the estimated future cash flows of the financial asset or the group of financial
assets that can be reliably estimated.