DESTINI Annual Report 2018

3. Significant Accounting Policies (Cont’d) (f) Intangible assets (Cont’d) (iv) Derecognition of intangible assets An intangible asset is derecognised on disposal, or when no future economic benefits are expected fromuse or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, are recognised in profit or loss when the asset is derecognised. See accounting policy Note 3(n)(i) to the financial statements on impairment of non-financial assets for intangible assets. (g) Financial assets Policy applicable from 1 January 2018 Financial assets are recognised in the statements of financial position when, and only when, the Group or the Company becomes a party to the contractual provisions of the financial instrument When financial assets are recognised initially, they are measured at fair value, plus, in the case of financial assets not at FVTPL, directly attributable transaction costs. The Group and the Company determine the classification of their financial assets at initial recognition, and the categories include trade and other receivables, amount due from subsidiaries and joint venture, deposits, cash and bank balances. (a) Financial assets at amortised cost The Group and the Company measure financial assets at amortised cost if both of the following conditions are met: · The financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and · The contractual terms of the financial asset give rise on specified dates to cash flows Financial assets at amortised cost are subsequentlymeasured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired. (b) Fair value through other comprehensive income The Group and the Company have not designated any financial assets as FVOCI. (c) Financial assets at fair value through profit or loss All financial assets not classified as measured at amortised cost or FVOCI, as described above, are measured at FVTPL. This includes derivative financial assets (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument). On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Financial assets categorised as FVTPL are subsequently measured at their fair value with gains or losses recognised in the profit or loss. NOTES TO THE FINANCIAL STATEMENTS DESTINI BERHAD ANNUAL REPORT 2018 124