Annual Report 2012, PDF - Axiata Group Berhad - Investor Relations

Axiata Group Berhad (242188-H) Annual Report 20123. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(e) Investments in subsidiaries and associatesIn the Company’s separate financial statements, investments in subsidiaries and associates are stated atcost less accumulated impairment losses.Where an indication of impairment exists, the carrying amount of the investment is assessed and writtendown immediately to its recoverable amount. See accounting policy Note 3(f) to the financial statementson impairment of non-financial assets.On disposal of an investment, the difference between the disposal proceed and its carrying amount of theinvestment is recognised in profit or loss. Disposal-related costs are expensed as incurred.(f) Impairment of non-financial assets (excluding goodwill)Assets that have an indefinite useful life are not subject to amortisation and are tested for impairmentannually, and as and when events or circumstances occur indicating that an impairment may exist.Assets with definite useful life are reviewed for impairment losses whenever events or changes incircumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognisedfor the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverableamount is the higher of an asset’s fair value less cost to sell (“FVLCS”) and value-in-use (“VIU”). For thepurpose of assessing impairment, assets are grouped at the lowest level for which there are separatelyidentifiable cash flows (CGUs). Assets that suffered an impairment are reviewed for possible reversal at theend of reporting period.The impairment loss is charged to profit or loss. Any subsequent increase in recoverable amount isrecognised in the profit or loss.(g) Financial assets(i)ClassificationThe Group and the Company classify its financial assets in the following categories: at FVTPL, loansand receivables, available-for-sale (“AFS”) and held-to-maturity (“HTM”). The classification depends onthe purpose for which the financial assets were acquired. Management determines the classification atinitial recognition.(a) Financial assets at FVTPLFinancial assets at FVTPL are financial assets held for trading. A financial asset is classified in thiscategory if it is acquired or incurred principally for the purpose of selling or repurchasing it in thenear term. Derivatives are also categorised as held for trading unless they are designated ashedges. See Note 19 to the financial statements on derivative financial instruments and hedgingactivities. Assets in this category are classified as current assets if expected to be settled within12 months; otherwise, they are classified as non-current.185