Kimlun Corporation Berhad Annual Report 2019

Annual Report 2019 Kimlun Corporation Berhad NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2019 (cont’d) 95 2. Summary of significant accounting policies (cont'd) 2.13 Financial instruments (cont'd) (a) Financial assets (cont'd) Subsequent measurement - Financial assets at amortised cost (debt instruments) - - - Financial assets at fair value through profit or loss - And - The Group's and the Company’s financial assets at amortised cost comprise solely of its trade and other receivables balances. The Group and the Company measure financial assets at amortised cost if both of the following conditions are met: The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. The Group's and the Company's only financial assets are its financial assets at amortised cost (debt instruments). Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments) For purposes of subsequent measurement financial assets are classified in four categories: Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)