DAYANG ENTERPRISE HOLDINGS BHD
(712243-U)
|
Annual Report
2015
76
2.
Significant accounting policies (cont’d)
(b) Financial instruments (cont’d)
(ii) Financial instrument categories and subsequent measurement
The Group and the Company categorise financial instruments as follows:
Financial assets
(a) Financial assets at fair value through profit or loss
Fair value through profit or loss category comprises financial assets that are held for
trading, including derivatives (except for a derivative that is a financial guarantee
contract or a designated and effective hedging instrument), contingent consideration
in a business combination or financial assets that are specifically designated into this
category upon initial recognition.
Derivatives that are linked to and must be settled by delivery of unquoted equity
instruments whose fair values cannot be reliably measured are measured at cost.
Other financial assets categorised as fair value through profit or loss are subsequently
measured at their fair values with the gain or loss recognised in profit or loss.
(b) Held-to-maturity investments
Held-to-maturity investments category comprises debt instruments that are quoted in an
active market and the Group or the Company has the positive intention and ability to
hold them to maturity.
Financial assets categorised as held-to-maturity investments are subsequently measured
at amortised cost using the effective interest method.
(c) Loans and receivables
Loans and receivables category comprises debt instruments that are not quoted in an
active market.
Financial assets categorised as loans and receivables are subsequently measured at
amortised cost using the effective interest method.
(d) Available-for-sale financial assets
Available-for-sale category comprises investment in equity and debt securities
instruments that are not held for trading.
Investments in equity instruments that do not have a quoted market price in an active
market and whose fair value cannot be reliably measured are measured at cost. Other
financial assets categorised as available-for-sale are subsequently measured at their
fair values with the gain or loss recognised in other comprehensive income, except for
impairment losses, foreign exchange gains and losses arising from monetary items and
gains and losses of hedged items attributable to hedge risks of fair value hedges which
are recognised in profit or loss. On derecognition, the cumulative gain or loss recognised
in other comprehensive income is reclassified from equity into profit or loss. Interest
calculated for a debt instrument using the effective interest method is recognised in
profit or loss.
Notes to the
Financial Statements
(cont’d)
