Page 113 - S P Setia Annual Report 2013
P. 113

Annual Report 2013 S P SETIA BERHAD GROUP Financial Statements | 111





NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2013 (CONT’D)






1. SiGniFicant accOUntinG POlicieS (cOnt’D)

(q) Financial instruments (cont’d)
(ii) Financial instrument categories and subsequent measurement (cont’d)

Loans and receivables

This category comprises debt instruments that are not quoted in an active market, trade and other receivables and cash and cash
equivalents. They are included in current assets, except for maturities longer than 12 months after the reporting period, which are
classifed as non-current assets.
The subsequent measurement of fnancial assets in this category is at amortised cost using the effective interest method, less
allowance for impairment losses. Any gains or losses arising from derecognition or impairment, and through the amortisation
process of loans and receivables are recognised in proft or loss.

Known bad debts are written off and allowance is made for any receivables considered to be doubtful of collection.

Financial liabilities
Financial liabilities are classifed as either fnancial liabilities at fair value through proft or loss or fnancial liabilities at amortised
cost.
The Group and the Company only have fnancial liabilities categorised as fnancial liabilities at amortised cost which are measured
using the effective interest method and are recognised in proft or loss.

(iii) Derecognition of fnancial assets and liabilities
A fnancial asset or part of it is derecognised when the contractual rights to the cash fows from the fnancial asset expire or the
fnancial asset is transferred to another party without retaining control or substantially all risks and rewards of the asset.

On derecognition of a fnancial asset, the difference between the carrying amount and the sum of the consideration received
together with any cumulative gain or loss that has been recognised in other comprehensive income is recognised in proft or loss.

A fnancial liability or part of it is derecognised when the obligation specifed in the contract is discharged, cancelled or expired.
On derecognition of a fnancial liability, the difference between the carrying amount and the consideration paid, including any
non-cash assets transferred or liabilities assumed, is recognised in proft or loss.
(r) impairment of assets

The Group and the Company assess at each reporting date whether there is any objective evidence that a fnancial asset is impaired.
   108   109   110   111   112   113   114   115   116   117   118