ANNUAL REPORT 2016
52
Techno
Dex
Berhad
(627634-A)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.5 FINANCIAL INSTRUMENTS (continued)
(a) Financial Assets (continued)
(i) Financial Assets at Fair Value through Profit or Loss
Financial assets are classified as financial assets at fair value through profit or loss when the financial
asset is either held for trading or is designated to eliminate or significantly reduce a measurement
or recognition inconsistency that would otherwise arise. Derivatives are also classified as held for
trading unless they are designated as hedges.
Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses
arising on remeasurement recognised in profit or loss. Dividend income from this category of financial
assets is recognised in profit or loss when the Group’s right to receive payment is established.
As at the end of the reporting period, there were no financial assets classified under this category.
(ii) Held-to-maturity Investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments
and fixed maturities that the management has the positive intention and ability to hold to maturity.
Held-to-maturity investments are measured at amortised cost using the effective interest method
less any impairment loss, with interest income recognised in profit or loss on an effective yield
basis.
As at the end of the reporting period, there were no financial assets classified under this category.
(iii) Loans and Receivables Financial Assets
Trade receivables and other receivables that have fixed or determinable payments that are not
quoted in an active market are classified as loans and receivables financial assets. Loans and
receivables financial assets are measured at amortised cost using the effective interest method, less
any impairment loss. Interest income is recognised by applying the effective interest rate, except for
short-term receivables when the recognition of interest would be immaterial.
(iv) Available-for-sale Financial Assets
Available-for-sale financial assets are non-derivative financial assets that are designated in this
category or are not classified in any of the other categories.
After initial recognition, available-for-sale financial assets are remeasured to their fair values at the
end of each reporting period. Gains and losses arising from changes in fair value are recognised
in other comprehensive income and accumulated in the fair value reserve, with the exception of
impairment losses. On derecognition, the cumulative gain or loss previously accumulated in the fair
value reserve is reclassified from equity into profit or loss.
Dividends on available-for-sale equity instruments are recognised in profit or loss when the Group’s
right to receive payments is established.
Investments in equity instruments whose fair value cannot be reliably measured are measured at
cost less accumulated impairment losses, if any.
As at the end of the reporting period, there were no financial assets classified under this category.
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
