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Datasonic Group Berhad
(Company No. 809759-X)
91
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.10 IMPAIRMENT
(a) Impairment of Financial Assets
All financial assets (other than those categorised at fair value through profit or loss), are
assessed at the end of each financial year whether there is any objective evidence of
impairment as a result of one or more events having an impact on the estimated future
cash flows of the asset. For an equity instrument, a significant or prolonged decline in the
fair value below its cost is considered to be an objective evidence of impairment.
An impairment loss in respect of held-to-maturity investments and loans and receivables
financial assets is recognised in profit or loss and is measured as the difference between the
asset’s carrying amount and the present value of estimated future cash flows, discounted
at the financial asset’s original effective interest rate.
An impairment loss in respect of available-for-sale financial assets is recognised in
profit or loss and is measured as the difference between its cost (net of any principal
payment and amortisation) and its current fair value, less any impairment loss previously
recognised. In addition, the cumulative loss recognised in other comprehensive income
and accumulated in equity under fair value reserve, is reclassified from equity into profit
or loss.
With the exception of available-for-sale debt instruments, if, in a subsequent period, the
amount of the impairment loss decreases and the decrease can be related objectively
to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed through profit or loss to the extent that the carrying amount
financial asset at the date the impairment is reversed does not exceed what the amortised
cost would have been had the impairment not been recognised. In respect of available-
for-sale equity instruments, impairment losses previously recognised in profit or loss are not
reversed through profit or loss. Any increase in fair value subsequent to an impairment loss
made is recognised in other comprehensive income.
An impairment loss in respect of unquoted equity instrument that is carried at cost is
recognised in profit or loss and is measured as the difference between the financial asset’s
carrying amount and the present value of estimated future cash flows discounted at the
current market rate of return for a similar financial asset. Such impairment losses are not
reversed in subsequent periods.
(b) Impairment of Non-Financial Assets
The carrying values of assets, other than those to which MFRS 136 - Impairment of Assets
does not apply, are reviewed at the end of each financial year for impairment when an
annual impairment assessment is compulsory there is an indication that the assets might
be impaired. Impairment is measured by comparing the carrying values of the assets with
their recoverable amounts. When the carrying amount of an asset exceeds its recoverable
amount, the asset is written down to its recoverable amount and an impairment loss shall
be recognised. The recoverable amount of the assets is the higher of the assets' fair value
less costs to sell and their value-in-use, which is measured by reference to discounted
future cash flow using a pre-tax discount rate.