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 (CONT’D)
(b) Financial Liabilities
All financial liabilities are initially measured 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 loss category comprises financial liabilities that are either held for
trading or are designed 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 liabilities are classified as current liabilities unless the Group has an unconditional
right to defer settlement of the liability for at least 12 months after the reporting date.
(c) Derecognition
A financial asset or part of it is derecognised 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.
(d) Equity Instruments
Instruments classified as equity aremeasured at cost and are not remeasured subsequently.
Ordinary shares are classified as equity. 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.
4.5 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 financial 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.
