65
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
(cont’d)
3.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
Financial Instruments (Cont’d)
(i)
Financial assets (Cont’d)
• Held-to-maturity investments
As at the end of the reporting period, there were no financial assets classified under this category.
• 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.
• Available-for-sale financial assets
As at the end of the reporting period, there were no financial assets classified under this category.
(ii)
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 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 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.
(iii) Equity instruments
Instruments classified as equity are measured at cost and are not remeasured subsequently.
• Ordinary shares
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.
• Treasury Shares
When the Company’s own shares recognised as equity are bought back, the amount of the
consideration paid, including all costs directly attributable, are recognised as a deduction from
equity. Own shares purchased that are not subsequently cancelled are classified as treasury
shares and are presented as a deduction from total equity. Where such shares are subsequently
sold or reissued, any consideration received, net of any direct costs, is included in equity.
