ENRICHING LIVES EXPANDING HORIZONS - Maxis

MAXIS BERHAD
ANNUAL REPORT 2011
127
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(f) Financial instruments (continued)
(i) Classification and measurement (continued)
Financial assets (continued)
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 classifies its 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 its financial liabilities at initial
recognition.
The Group does not hold any financial liabilities carried at fair value through profit or loss and financial guarantee
contracts.
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 income statement.
The Group’s other financial liabilities comprise payables (including inter-companies and related parties balances)
and borrowings in the statements 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 becomes party to the contractual provisions of
the instrument.
(iii) Derecognition of financial assets and financial liabilities
Financial assets are derecognised when the risks and rewards relating to the financial assets have expired or have been
fully transferred or have been partially transferred with no control over the same.
Financial liabilities are derecognised when the liability is either discharged, cancelled, has expired or has been
restructured with substantially different terms.
(iv) Offsetting of financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount reported in the statements of financial position
when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net
basis, or realise the net asset and settle the liability simultaneously.