Frontken Corporation Berhad 200401012517 (651020-T) • ANNUAL REPORT 2023 95 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 3. MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D) Government Grants The Group presents government grants related to an asset by setting up the grants as deferred income and are amortised to profit or loss on a systematic basis over the expected useful life of the relevant asset. Goodwill Goodwill is initially measured at cost. Subsequent to the initial recognition, the goodwill is measured at cost less accumulated impairment losses, if any. A bargain purchase gain is recognised in profit or loss immediately. Financial Instruments (i) Financial Assets Financial Assets Through Profit or Loss The financial assets are initially measured at fair value. Subsequent to the initial recognition, the financial assets are remeasured to their fair values at the reporting date with fair value changes recognised in profit or loss. The fair value changes do not include interest and dividend income. Financial Assets at Amortised Cost The financial assets are initially measured at fair value plus transaction costs except for trade receivables without significant financing component which are measured at transaction price only. Subsequent to the initial recognition, all financial assets are measured at amortised cost less any impairment losses. Financial Assets Through Other Comprehensive Income The financial assets are initially measured at fair value plus transaction costs. Subsequent to the initial recognition, the financial assets are remeasured to their fair values at the reporting date with fair value changes taken up in other comprehensive income and accumulated in the fair value reserve, except for the recognition of impairment, interest income and foreign exchange difference of a debt instrument which are recognised directly in profit or loss. The fair value changes do not include interest and dividend income. (ii) Financial Liabilities Financial Liabilities Through Profit or Loss The financial liabilities are initially measured at fair value. Subsequent to the initial recognition, the financial liabilities are remeasured to their fair values at the reporting date with fair value changes recognised in profit or loss. The fair value changes do not include interest expense. Financial Liabilities at Amortised Cost The financial liabilities are initially measured at fair value less transaction costs. Subsequent to the initial recognition, the financial liabilities are measured at amortised cost.
RkJQdWJsaXNoZXIy NDgzMzc=