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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)
3.9 Financial liabilities
(i) Initial recognition and subsequent measurement
Financial liabilities are classified according to the substance of the contractual
arrangements entered into and the definitions of a financial liability. All financial
liabilities are measured initially at fair value plus directly attributable costs, except in
the case of financial liabilities at FVTPL.
Financial liabilities, within the scope of MFRS 139, are recognised in the statement
of financial position when, and only when, the Group or the Company becomes a
party to the contractual provisions of the financial instrument. Financial liabilities
are classified as either financial liabilities at fair value through profit or loss or other
financial liabilities.
•
Financial liabilities at FVTPL
Financial liabilities at FVTPL include financial liabilities held for trading and
financial liabilities designated upon initial recognition as at FVTPL.
Financial liabilities held for trading include derivatives entered into by the Group
or the Company that do not meet the hedge accounting criteria. Derivative
liabilities are initially measured at fair value and subsequently stated at fair
value, with any resultant gains or losses recognised in profit or loss. Net gains
or losses on derivatives include exchange differences.
The Group and the Company have not designated any financial liabilities at
FVTPL.
•
Other financial liabilities
The Group's and the Company's other financial liabilities include payables and
other liabilities.
Payables are recognised initially at fair value plus directly attributable transaction
costs and subsequently measured at amortised cost using the effective interest
method.
Other liabilities are stated at cost which is the fair value of the consideration
expected to be paid in future for goods and services received.
Financial liabilities are classified as current liabilities unless the Group has an
unconditional right to defer settlement of the liability for at least 12 months after
the reporting date.