87 / 168
Datasonic Group Berhad
(Company No. 809759-X)
85
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 31 March 2016
(Continued)
4.
SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
4.4 FINANCIAL INSTRUMENTS
Financial assets and financial liabilities are recognised in the statements of financial position
when the Group has become a party to the contractual provisions of the instruments.
Financial instruments are classified as financial assets, liabilities or equity instruments in
accordance with the substance of the contractual arrangement and their definitions in MFRS
132. Interest, dividends, gains and losses relating to a financial instrument classified as a liability,
are reported as an expense or income. Distributions to holders of financial instruments classified
as equity are charged directly to equity.
Financial instruments are offset when the Group has a legally enforceable right to offset and
intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.
A financial instrument is recognised initially at its fair value. Transaction costs that are directly
attributable to the acquisition or issue of the financial instrument (other than a financial
instrument at fair value through profit or loss) are added to/deducted from the fair value on
initial recognition, as appropriate. Transaction costs on the financial instrument at fair value
through profit or loss are recognised immediately in profit or loss.
Financial instruments recognised in the statements of financial position are disclosed in the
individual policy statement associated with each item.
(a) Financial Assets
On initial recognition, financial assets are classified as either financial assets at fair value
through profit or loss, held-to-maturity investments, loans and receivables financial assets,
or available-for-sale financial assets, as appropriate.
(i)
Financial Assets at Fair Value through Profit or Loss
Financial assets are classified as financial assets at fair value through profit or loss
when the financial asset is either held for trading or is designated to eliminate
or significantly reduce a measurement or recognition inconsistency that would
otherwise arise. Derivatives are also classified as held for trading unless they are
designated as hedges.
Financial assets at fair value through profit or loss are stated at fair value, with any
gains or losses arising on remeasurement recognised in profit or loss. Dividend income
from this category of financial assets is recognised in profit or loss when the Group’s
right to receive payment is established.
Financial assets at fair value through profit or loss could be presented as current assets
or non-current assets. Financial assets that are held primarily for trading purposes
are presented as current assets whereas financial assets that are not held primarily
for trading purposes are presented as current assets or non-current assets based on
the settlement date.