LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

TEO SENG CAPITAL BERHAD(Incorporated In Malaysia)Company No : 732762 - TNOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL PERIOD FROM 1 APRIL 2012 TO 31 DECEMBER 20124. ACCOUNTING POLICIES AND STANDARDS (CONT’D)4.2 Summary of Significant Accounting Policies (Cont’d)(f)Impairment(i)Impairment of financial assetsAll financial assets (other than those categorised at fair value through profit orloss), are assessed at the end of each reporting period whether there is anyobjective evidence of impairment as a result of one or more events having animpact on the estimated future cash flows of the asset.An impairment loss in respect of held-to-maturity investments and loans andreceivables financial assets is recognised in profit or loss and is measured asthe difference between the asset’s carrying amount and the present value ofestimated future cash flows, discounted at the financial asset’s original effectiveinterest rate.An impairment loss in respect of available-for-sale financial assets isrecognised in profit or loss and is measured as the difference between its cost(net of any principal payment and amortisation) and its current fair value, lessany impairment loss previously recognised in the fair value reserve. In addition,the cumulative loss recognised in other comprehensive income andaccumulated in equity under fair value reserve, is reclassified from equity toprofit or loss.With the exception of available-for-sale equity instruments, if, in a subsequentperiod, the amount of the impairment loss decreases and the decrease can berelated objectively to an event occurring after the impairment was recognised,the previously recognised impairment loss is reversed through profit or loss tothe extent that the carrying amount of the investment at the date theimpairment is reversed does not exceed what the amortised cost would havebeen had the impairment not been recognised. In respect of available-for-saleequity instruments, impairment losses previously recognised in profit or lossare not reversed through profit or loss. Any increase in fair value subsequent toan impairment loss made is recognised in other comprehensive income.For available-for-sale debt investments, impairment losses are subsequentlyreversed in profit or loss if an increase in the fair value of the investment can beobjectively related to an event occurring after the recognition of the impairmentloss in profit or loss.Page 30