Notes to the Financial Statements
(Cont’d)
For the financial year ended 30 April 2016
(In Singapore Dollar)
STAMFORD TYRES CORPORATION LIMITED
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DRIVING IT UP
2.
Summary of significant accounting policies (cont’d)
2.10
Joint ventures and associate (cont’d)
Upon loss of significant influence over the associate or joint venture, the Group measures and recognises
the retained investment at its fair value. Any difference between the carrying amount of the associate
or joint venture upon loss of significant influence and the fair value of the aggregate of the retained
investment and proceeds from disposal is recognised in profit or loss.
If the Group’s ownership interest in an associate or joint venture is reduced, but the Group continues to
apply the equity method, the Group reclassifies to profit or loss the proportion of the gain or loss that had
previously been recognised in other comprehensive income relating to that reduction in ownership interest
if that gain or loss would be required to be reclassified to profit or loss on the disposal of the related
assets or liabilities.
In the Company’s separate financial statements, investments in associated companies or joint ventures are
accounted for at cost less impairment losses. Details of the associated company and joint ventures are set
out in Note 40.
2.11
Financial instruments
(a)
Financial assets
Initial recognition and measurement
Financial assets are recognised when, and only when, the Group becomes a party to the contractual
provisions of the financial instrument. The Group determines the classification of its financial assets
at initial recognition.
When financial assets are recognised initially, they are measured at fair value, plus, in the case of
financial assets not at fair value through profit or loss, directly attributable transaction costs.
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
and financial assets designated upon initial recognition at fair value through profit or loss.
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. Derivatives, including separated embedded derivatives are also
classified as held for trading.
The Group has not designated any financial assets upon initial recognition at fair value
through profit or loss.
