73
ANNUAL REPORT 2015/2016
Notes to Financial Statements
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
(xi)
Impairment of non-financial assets (cont’d)
Property, plant and equipment (cont’d)
Investments in subsidiaries (cont’d)
An impairment loss for an asset other than goodwill is reversed only if, there has been a change in the
estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised.
The carrying amount of this asset is increased to its revised recoverable amount, provided that this
amount does not exceed the carrying amount that would have been determined (net of any accumulated
depreciation) had no impairment loss been recognised for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss, unless the
asset is carried at revalued amount, in which case, such reversal is treated as a revaluation increase.
However, to the extent that an impairment loss on the same revalued asset was previously recognised
as an expense, a reversal of that impairment is also recognised in profit or loss.
(xii)
Non-derivative financial assets
Initial recognition and measurement and derecognition of financial assets
A financial asset is recognised on the balance sheet only when the entity becomes a party to the
contractual provisions of the instrument. The initial recognition of financial assets is at fair value
normally represented by the transaction price. The transaction price for financial asset not classified
at fair value through profit or loss includes the transaction costs that are directly attributable to the
BDRVJTJUJPO PS JTTVF PG UIF GJOBODJBM BTTFU 5SBOTBDUJPO DPTUT JODVSSFE PO UIF BDRVJTJUJPO PS JTTVF PG
financial assets classified at fair value through profit or loss are expensed immediately. The transactions
are recorded at the trade date.
Irrespective of the legal form of the transactions performed, financial assets are derecognised when
they pass the “substance over form” based derecognition test prescribed by FRS 39 relating to the
transfer of risks and rewards of ownership and the transfer of control.
Subsequent measurement and impairment of financial assets
4VCTFRVFOU NFBTVSFNFOU CBTFE PO UIF DMBTTJGJDBUJPO PG UIF GJOBODJBM BTTFUT JO POF PG UIF GPMMPXJOH
categories under FRS 39 is as follows:
a.
Financial assets at fair value through profit or loss: Assets are classified in this category when they
are incurred principally for the purpose of trading in the near term (trading assets) or because
the conditions are met to use the “fair value option” and it is used. These assets are carried at
fair value by reference to the transaction price or current bid prices in an active market. All
changes in fair value relating to assets at fair value through profit or loss are recognised directly
in the profit or loss. They are classified as non-current assets unless management intends to
dispose of the investment within 12 months of the end of the reporting year. Typically, short-
UFSN JOWFTUNFOUT JO FRVJUZ BOE EFCU TFDVSJUJFT BSF DMBTTJGJFE JO UIJT DBUFHPSZ
