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)
(b)
Financial liabilities
(cont’d)
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
(i)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for
trading. Financial liabilities are classified as held for trading if they are acquired for the
purpose of selling 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. Separated embedded derivatives are also classified as held for trading unless
they are designated as effective hedging instruments.
Subsequent to initial recognition, financial liabilities 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
liabilities 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.
The Group has not designated any financial liabilities upon initial recognition at fair value
through profit or loss.
(ii)
Other financial liabilities
After initial recognition, other financial liabilities are subsequently measured at amortised
cost using the effective interest rate method. Gains and losses are recognised in profit or loss
when the liabilities are derecognised, and through the amortisation process.
De-recognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a de-recognition of the original liability and the recognition
of a new liability, and the difference in the respective carrying amounts is recognised in profit or loss.
