Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 50 3. Significant accounting policies (continued) (q) Financial instruments (continued) (iii) Regular way purchase or sale of financial assets A regular way purchase or sale of financial assets is recognised and derecognised, as applicable, using trade date or settlement date accounting in the current year. Trade date accounting refers to:  the recognition of an asset to be received and the liability to pay for it on the trade date; and  derecognition of an asset that is sold, recognition of any gain or loss on disposal and the recognition of a receivable from the buyer for payment on the trade date. Settlement date accounting refers to:  the recognition of an asset on the day it is received by the Group or the Company; and  derecognition of an asset and recognition of any gain or loss on disposal on the day that it is delivered by the Group or the Company. Any change in the fair value of the asset to be received during the period between the trade date and the settlement date is accounted in the same way as it accounts for the acquired asset. Generally, the Group or the Company applies settlement date accounting unless otherwise stated for the specific class of asset. (iv) Financial guarantee contracts A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument. Financial guarantees issued are initially measured at fair value. Subsequently, they are measured at higher of:  the amount of the loss allowance; and  the amount initially recognised less, when appropriate, the cumulative amount of income recognised in accordance to the principles of MFRS 15: Revenue from Contracts with Customers. Liabilities arising from financial guarantees are presented together with other provisions.