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Notes to the
Financial Statements
As at 31 March 2020
Fima CORPORATION Berhad
(197401004110) (21185-P) •
Annual Report 2020
130
2.
Significant accounting policies (cont’d.)
2.4 Summary of significant accounting policies (cont’d.)
(j) Financial assets (cont’d.)
Subsequent measurement (cont’d.)
-
Financial assets at FVTOCI with recycling of cumulative gains and losses (debt instruments); or
-
Financial assets designated at FVTOCI with no recycling of cumulative gains and losses upon derecognition (equity
instruments).
Financial assets at amortised cost (debt instruments)
This category is themost relevant to the Group and the Company. The Group and the Company measures financial assets
at amortised cost if both of the following conditions are met:
-
The financial asset is held within a business model with the objective to hold financial assets in order to collect
contractual cash flows; and
-
The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest rate (“EIR”) method and are
subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or
impaired.
The Group’s and the Company’s financial assets at amortised cost include trade and other receivables, amount due from
related companies, investment in redeemable preference shares and cash and bank balances.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to
be measured at fair value. Financial assets are classified as held for trading if they are acquired for the purpose of
selling or repurchasing in the near term. Derivatives, including separated embedded derivatives, are also classified
as held for trading unless they are designated as effective hedging instruments. Financial assets with cash flows
that are not solely payments of principal and interest are classified and measured at fair value through profit
or loss, irrespective of the business model. Notwithstanding the criteria for debt instruments to be classified at
amortised cost or at fair value through OCI, as described above, debt instruments may be designated at fair value
through profit or loss on initial recognition if doing so eliminates, or significantly reduces, an accounting mismatch.
Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with net
changes in fair value recognised in the statement of profit or loss.