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103
Maxis Berhad
Annual Report 2014
Notes to the
Financial Statements
31 December 2014
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Financial instruments (continued)
(i) Classification and measurement (continued)
Financial assets (continued)
Available-for-sale
Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the
other categories. Financial assets in this category are initially recognised at fair value plus transaction costs and subsequently,
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, interest and dividends
are recognised in the statement of profit or loss. The cumulative gain or loss previously recognised in other comprehensive
income is reclassified from equity to the statement of profit or loss as a reclassification adjustment when the financial asset
is derecognised.
Investments in equity instruments for which the fair value cannot be reliably measured are recognised at cost less impairment
loss.
The Group’s available-for-sale financial asset comprises investment in unquoted shares.
Financial liabilities
The Group and the Company classify their financial liabilities in the following categories: at fair value through profit or loss,
other financial liabilities and financial guarantee contracts. Management determines the classification of financial liabilities at
initial recognition.
The Group and the Company do not hold any financial liabilities carried at fair value through profit or loss (except for
derivatives that are designated as effective hedging instruments) and financial guarantee contracts. See accounting policy
Note 3(h) on derivative financial instruments and hedging activities.
Other financial liabilities are non-derivative financial liabilities. Other financial liabilities are initially recognised at fair value plus
transaction costs and subsequently carried at amortised cost using the effective interest method. Changes in the carrying
value of these liabilities are recognised in the statement of profit or loss.
The Group’s and the Company’s other financial liabilities comprise payables (including inter-companies and related parties
balances) and borrowings in the statement of financial position. Financial liabilities are classified as current liabilities; except
for maturities greater than 12 months after the reporting date, in which case they are classified as non-current liabilities.
(ii) Recognition of financial assets and financial liabilities
Financial assets and financial liabilities are recognised when the Group and the Company become party to the contractual
provisions of the instrument.
