NOTES TO THE FINANCIAL STATEMENTS
For The Financial Period From 1 January 2014 To 31 March 2015 (Cont’d)
68
Annual Report 2015
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.4 FINANCIAL INSTRUMENTS (CONT’D)
(a) Financial Assets (Cont’d)
(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.
Held-to-maturity investments are classified as non-current assets, except for those
having maturity within 12 months after the reporting date which are classified as
current assets.
As at the end of the financial 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.
Loans and receivables financial assets are classified as current assets, except for
those having settlement dates later than 12 months after the reporting date which
are classified as non-current assets.
(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 financial year. 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.
Available-for-sale financial assets are classified as non-current assets unless they are
expected to be realised within 12 months after the reporting date.
