Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 89 3. Significant Accounting Policies (cont’d) (h) Financial liabilities (cont’d) A financial liability is derecognised when, and only when, the obligation specified in the contract is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss (i) Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the statements of financial position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously. (j) Inventories Consumables are stated at the lower of cost and net realisable value. Cost of consumables comprise cost of purchase and other costs incurred in bringing it to their present location and condition are determined on a first-in-first out basis. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale. (k) Cash and cash equivalents Cash and cash equivalents comprise cash in hand and bank balances that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)