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Notes to the
Financial Statements
As at 31 March 2019
2.
Significant accounting policies (cont’d.)
2.3 Summary of significant accounting policies (cont’d.)
(r) Financial assets (cont’d.)
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.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e., removed from the Group’s consolidated statement of financial
position) when:
-
The rights to receive cash flows from the asset have expired; or
-
The Group has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through’ arrangement; and either (a) the Group and the Company have transferred
substantially all the risks and rewards of the asset, or (b) the Group and the Company have
neither transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset.
When the Group and the Company have transferred its rights to receive cash flows from an asset or
has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the
risks and rewards of ownership. When it has neither nor retained substantially all of the risks and
rewards of the asset, nor transferred control of the asset, the Group and the Company continues
to recognise the transferred asset to the extent of its continuing involvement. In that case,
the Group and the Company also recognises an associated liability. The transferred asset and the
associated liability are measured on a basis that reflects the rights and obligations that the Group
and the Company have retained.
Kumpulan Fima Berhad
(11817-V)
Annual Report 2019
142