2012 Annual Report - Media Prima Berhad

Media Prima Berhad
Summary of Significant
Accounting Policies
for the financial year ended 31 December 2012
AA FINANCIAL ASSETS (CONTINUED)
(iii) Subsequent measurement – gains and losses
Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried
at fair value. Loans and receivables and held-to-maturity financial assets are subsequently carried at amortised
cost using the effective interest method.
Changes in the fair values of financial assets at fair value through profit or loss, including the effects of currency
translation, interest and dividend income are recognised in the profit or loss in the period in which the changes
arise.
Changes in the fair value of available-for-sale financial assets are recognised in other comprehensive income,
except for interest, dividend income and impairment losses (see accounting policy Note AA(v)) and foreign
exchange gains and losses on monetary assets. The exchange differences on monetary assets are recognised
in net profit for the financial year, whereas exchange differences on non-monetary assets are recognised in
other comprehensive income as part of fair value change.
Interest and dividend income on available-for-sale financial assets are recognised separately in the profit or loss.
Interest on available-for-sale debt securities calculated using the effective interest method is recognised in net
profit for the financial year. Dividends income on available-for-sale equity instruments are recognised in net
profit for the financial year when the Group’s right to receive a payment is established.
(iv) Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement 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 asset and settle the liability simultaneously.
(v) Subsequent measurement – impairment of financial assets
(a)
Assets carried at amortised cost
The Group assesses at the end of each reporting period whether there is objective evidence that a financial
asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired
and impairment losses are incurred only if there is objective evidence of impairment as a result of one or
more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or
events) has an impact on the estimated future cash flows of the financial asset or group of financial assets
that can be reliably estimated.
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annual
report
2012