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Annual Report 2020
162
Notes to the Financial Statements
As at 31 March 2020
kumpulan Fima Berhad
(197201000167)(11817-V)
2.
Significant accounting policies (cont'd.)
2.4 Summary of significant accounting policies (cont'd.)
(r) Financial assets (cont'd.)
Subsequent measurement (cont'd.)
Financial assets at amortised cost (debt instruments)
This category is the most 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.