Sasbadi Annual Report 2019

PAGE 144 SASBADI HOLDINGS BERHAD FINANCIAL STATEMENTS (continued) 30. Significant changes in accounting policies (continued) 30.2 Accounting for financial instruments (continued) b. Classification of financial assets and financial liabilities on the date of initial application of MFRS 9 (continued) 1 September 2018 Reclassification to new MFRS 9 category Category under MFRS 139 31 August 2018 Remeasurement AC FVTPL FVOCI – Equity instrument Company RM’000 RM’000 RM’000 RM’000 RM’000 Financial assets Loans and receivables Trade and other receivables 16,028 - 16,028 - - Cash and cash equivalents 22 - 22 - - 16,050 - 16,050 - - Financial liabilities Other financial liabilities measured at amortised cost Trade and other payables 372 - 372 - - (i) Reclassification from loans and receivables to amortised cost Trade and other receivables that were classified as loans and receivables under MFRS 139 are now reclassified at amortised cost. An increase of RM4,052,000 in allowance for impairment was recognised in opening retained earnings of the Group at 1 September 2018 on transition to MFRS 9. (ii) Reclassification from AFS to FVOCI Investment in unquoted shares are investments that the Group intends to hold for long term strategic purposes. As permitted by MFRS 9, the Group has designated these investments as measured at FVOCI at the date of initial application. (iii) Reclassification from AFS to FVTPL These are the Group’s investments which are not held for strategic purposes. As a result, the carrying amount of RM37,000 was reclassified from available-for-sale to fair value though profit or loss.