Notes to the Financial Statements
(Cont’d)
For the year ended 30 April 2015
(In Singapore Dollars)
ANNUAL REPORT 2015
50
BUILDING ON OUR EXTENSIVE NETWORK
2.
Summary of significant accounting policies (cont’d)
2.11
Financial instruments (cont’d)
(a)
Financial assets (cont’d)
Subsequent measurement (cont’d)
(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.
The Group classifies the following financial assets as loans and receivables:
z
cash and cash equivalents;
z
trade and other receivables, amounts due from the subsidiary companies.
(iii) Available-for-sale financial assets
Available-for-sale financial assets include equity and debt securities. Equity investments
classified as available-for sale are those, which are neither classified as held for trading nor
designated at fair value through profit or loss. Debt securities in this category are those which
are intended to be held for an indefinite period of time and which may be sold in response to
needs for liquidity or in response to changes in the market conditions.
After initial recognition, available-for-sale financial assets are subsequently 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 de-recognised.
Investments in equity instruments whose fair value cannot be reliably measured are
measured at cost less impairment loss.
De-recognition
A financial asset is derecognised where the contractual right to receive cash flows from the asset
has expired. On de-recognition 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.
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.
