NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
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Datasonic Group Berhad
(Company No. 809759-X)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.4 FINANCIAL INSTRUMENTS
Financial instruments are recognised in the statements of financial position when the Group
has become a party to the contractual provisions of the instruments.
Financial instruments are classified as liabilities or equity in accordance with the substance of the
contractual arrangement. Interest, dividends, gains and losses relating to a financial instrument
classified as a liability, are reported as an expense or income. Distributions to holders of financial
instruments classified as equity are charged directly to equity.
Financial instruments are offset when the Group has a legally enforceable right to offset and
intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.
A financial instrument is recognised initially at its fair value. Transaction costs that are directly
attributable to the acquisition or issue of the financial instrument (other than a financial
instrument at fair value through profit or loss) are added to/deducted from the fair value on
initial recognition, as appropriate. Transaction costs on the financial instrument at fair value
through profit or loss are recognised immediately in profit or loss.
Financial instruments recognised in the statement of financial position are disclosed in the
individual policy statement associated with each item.
(a) Financial Assets
On initial recognition, financial assets are classified as either financial assets at fair value
through profit or loss, held-to-maturity investments, loans and receivables financial assets,
or available-for-sale financial assets, as appropriate.
(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.
Financial assets at fair value through profit or loss could be presented as current or
non-current. Financial assets that are held primarily for trading purposes are presented
as current whereas financial assets that are not held primarily for trading purposes
are presented as current or non-current based on the settlement date.
As at the end of the reporting period, there were no financial assets classified under
this category.
