Notes to the Financial Statements
(Cont’d)
For the financial year ended 30 April 2016
(In Singapore Dollar)
ANNUAL REPORT 2016
DRIVING IT UP
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2.
Summary of significant accounting policies (cont’d)
2.11
Financial instruments (cont’d)
(a)
Financial assets (cont’d)
Subsequent measurement (cont’d)
(i)
Financial assets at fair value through profit or loss (cont’d)
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.
Derivatives embedded in host contracts are accounted for as separate derivatives and
recorded at fair value if their economic characteristics and risks are not closely related
to those of the host contracts and the host contracts are not measured at fair value with
changes in fair value recognised in profit or loss. These embedded derivatives are measured
at fair value with changes in fair value recognised in profit or loss. Reassessment only occurs
if there is a change in the terms of the contract that significantly modifies the cash flows that
would otherwise be required.
(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:
l
cash and cash equivalents;
l
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.
