2. Summary of significant accounting policies (cont’d)
2.14 Financial instruments (cont’d)
(a) Financial assets (cont’d)
Subsequent measurement
The subsequent measurement of financial assets depends on their classification
as follows:
(i)
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held
for trading. Financial assets are classified as held for trading if they are acquired
for the purpose of selling or repurchasing in the near term. This category
includes derivative financial instruments entered into by the Group that are not
designated as hedging instruments in hedge relationships as defined by FRS
39. Derivatives, including separated embedded derivatives also classified as
held for trading unless they are designated as effective hedging instruments.
Subsequent to initial recognition, financial assets at fair value through profit or
loss are measured at fair value. Any gains or losses arising from changes in fair
value of the financial assets are recognised in profit or loss. Net gains or net
losses on financial assets at fair value through profit or loss include exchange
differences, interest and dividend income.
(ii) Loans and receivables
Non-derivative financial assets with fixed or determinable payments that
are not quoted in an active market are classified as loans and receivables.
Subsequent to initial recognition, loans and receivables are measured at
amortised cost using the effective interest method, less impairment. Gains
and losses are recognised in profit or loss when the loans and receivables are
derecognised or impaired and through the amortisation process.
Derecognition
A financial asset is derecognised where the contractual right to receive cash flows
from the asset has expired. On derecognition of a financial asset in its entirety, the
difference between the carrying amount and the sum of the consideration received
and any cumulative gain or loss that had been recognised in other comprehensive
income is recognised in profit or loss.
Regular way purchase or sale of a financial asset
All regular way purchases and sales of financial assets are recognised or
derecognised on the trade date i.e., the date that the Group commits to purchase
or sell the asset. Regular way purchases or sales are purchases or sales of financial
assets that require delivery of assets within the period generally established by
regulation or convention in the marketplace concerned.
NOTES TO THE FINANCIAL
STATEMENTS
For the financial year ended 30 June 2015
ASL Marine Holdings Ltd. /Annual Report 2015
87
