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AEMULUS HOLDINGS BERHAD
A N N U A L R E P O R T 2 0 1 6
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
3.6 Financial Instruments
3.6.1 Initial recognition and measurement
A financial asset or a financial liability is recognised in the statement of financial position when, and only
when, the Group and the Company become a party to the contractual provisions of the instrument.
A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at
fair value through profit or loss, transactions costs that are directly attributable to the acquisition or issue of
the financial instrument.
3.6.2 Financial instrument categories and subsequent measurement
The Group and the Company categorise financial instruments as follows:
Financial assets
(a) Loans and receivables
Loans and receivables category comprises debt instruments that are not quoted in an active market.
Financial assets categorised as loans and receivables are subsequently measured at amortised cost
using the effective interest method.
Loans and receivables are classified as current assets, except for those having maturity dates later
than 12 months after the end of the reporting period which are classified as non-current.
(b) Available-for-sale financial assets
Available-for-sale category comprises investment in equity and debt securities instruments.
After initial recognition, available-for-sale financial assets are measured at fair value. Any gains or losses
from changes in fair value of the financial assets are recognised in other comprehensive income, except
that impairment losses, foreign exchange gains and losses on monetary instruments and interest
calculated using the effective interest method are recognised in profit or loss. The cumulative gain or
loss previously recognised in other comprehensive income is reclassified from equity to profit or loss
as a reclassification adjustment when the financial asset is derecognised. Interest income calculated
using the effective interest method is recognised in profit or loss. Dividends on an available-for-sale
equity instrument are recognised in profit or loss when the Group’s and the Company’s right to receive
payment is established.
Investments in equity instruments whose fair value cannot be reliably measured are measured at cost
less impairment loss.
All financial assets are subject to review for impairment.
Financial liabilities
All financial liabilities are subsequently measured at amortised cost.
Financial liabilities are classified as current liabilities, except for those having maturity dates later than 12
months after the end of the reporting period which are classified as non-current.
3.6.3 Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial
position if, and only if, there is a currently enforceable legal right to offset the recognised amounts and
there is an intention to settle on a net basis, or to realise the assets and settle the liabilities simultaneously.
NOTES TO THE FINANCIAL STATEMENTS
(Cont’d)
– 30 SEPTEMBER 2016