ANNUAL REPORT 2016
53
Techno
Dex
Berhad
(627634-A)
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.5 FINANCIAL INSTRUMENTS (continued)
(b) Financial Liabilities
All financial liabilities are initially at fair value plus directly attributable transaction costs and subsequently
measured at amortised cost using the effective interest method other than those categorised as fair
value through profit or loss.
Fair value through profit or losscategory comprises financial liabilities that are either held for trading or
are 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.
(c) Equity Instruments
Ordinary shares classified as equity are measured at cost and are not remeasured subsequently.
Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity
as a deduction, net of tax, from proceeds.
Dividends on ordinary shares are recognised as liabilities when approved for appropriation.
(d) Derecognition
A financial asset or part of it is derecongised when, and only when, the contractual rights to the cash
flows from the financial asset expire or the financial asset is transferred to another party without retaining
control or substantially all risks and rewards of the asset. On derecognition of a financial asset, the
difference between the carrying amount and the sum of the consideration received (including any new
asset obtained less any new liability assumed) and any cumulative gain or loss that had been recognised
in equity is recognised in profit or loss.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the
contract is discharged or cancelled or expires. On derecognition of a financial liability, the difference
between the carrying amount of the financial liability extinguished or transferred to another party and
the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in
profit or loss.
4.6 INVESTMENTS IN SUBSIDIARIES
Investments in subsidiaries are stated at cost in the statement of financial position of the Company, and are
reviewed for impairment at the end of the reporting period if events or changes in circumstances indicate that
the carrying values may not be recoverable. The cost of the investments includes transaction costs.
On the disposal of the investments in subsidiaries, the difference between the net disposal proceeds and the
carrying amount of the investments is recognised in profit or loss.
4.7 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, other than freehold land, are stated at cost less accumulated depreciation
and impairment losses, if any.
NOTES TO THE
FINANCIAL STATEMENTS
(continued)
