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)
2.11
Financial instruments (cont’d)
(a)
Financial assets (cont’d)
Subsequent measurement (cont’d)
(iii)
Available-for-sale financial assets (cont’d)
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.
(b)
Financial liabilities
Initial recognition and measurement
Financial liabilities 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 liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at
fair value through profit or loss, directly attributable transaction costs.
