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NOTES TO THE FINANCIAL STATEMENTS
F I N A N C I A L S TAT E M E N T S
2.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D.)
2.3 Summary of Significant Accounting Policies (Cont’d.)
(j)
Financial Assets (Cont’d.)
(i)
Financial assets at fair value through profit or loss
Financial assets are classified as financial assets at fair value through profit or loss if they are held for trading
or are designated as such upon initial recognition. Financial assets held for trading are derivatives (including
separated embedded derivatives) or financial assets acquired principally for the purpose of selling in the near
term.
Subsequent to initial recognition, financial assets at fair value through profit or loss are measured at fair
value. Any gains or losses arising from changes in fair value are recognised in profit or loss. Net gains or net
losses on financial assets at fair value through profit or loss do not include exchange differences, interest and
dividend income. Exchange differences, interest and dividend income on financial assets at fair value through
profit or loss are recognised separately in profit or loss as part of other losses or other income.
Financial assets at fair value through profit or loss could be presented as current or non-current. Financial
assets that is held primarily for trading purposes are presented as current whereas financial assets that is
not held primarily for trading purposes are presented as current or non-current based on the settlement
date.
(ii) Loans and receivables
Financial assets with fixed or determinable payments that are not quoted in an active market are classified
as loans and receivables.
Loans and receivables are classified as current assets, except for those having maturity date later than 12
months after the reporting date which are classified as non-current.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective
interest method. Gains and losses are recognised in profit or loss when the loans and receivables are
derecognised or impaired, and through the amortisation process.
A financial asset is derecognised when the contractual right to receive cash flows from the asset has expired. 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 and the
Company commit to purchase or sell the asset.