Content2011 - PETRONAS Gas Berhad

Notes to the Financial Statements
31 MarCh 2011
2. Signifi cant Accounting Policies (Continued)
2.8 Non-derivative fi nancial instruments (Continued)
i) Financial assets (Continued)
149 annUaL report 2011
Initial recognition (Continued)
The Group’s and the Company’s fi nancial assets include cash and cash equivalents, trade and other receivables, fund and
other investments and derivative fi nancial instruments.
Subsequent measurement
The subsequent measurement of fi nancial assets depends on their classifi cation as follows:
Financial assets at fair value through profi t or loss
Financial assets at fair value through profi t or loss includes fi nancial assets held for trading and fi nancial assets designated
upon initial recognition at fair value through profi t or loss.
Financial assets at fair value through profi t or loss are carried in the statement of fi nancial position at fair value with gains or
losses recognised in the profi t or loss. The methods used to measure fair value are stated in Note 2.8 (iv).
Loans and receivables
Loans and receivables are non-derivative fi nancial assets with fi xed or determinable payments that are not quoted in an active
market. Subsequent to initial recognition, such fi nancial assets are carried at amortised cost, using the effective interest rate
method, less impairment losses.
Gains and losses are recognised in the profi t or loss when the loans and receivables are derecognised or impaired, as well as
through the amortisation process.
ii) Financial liabilities
Initial recognition
Financial liabilities within the scope of FRS 139: Financial Instruments: Recognition and Measurement are classifi ed as loans
and borrowings and fi nancial liabilities at fair value through profi t or loss. The Group and the Company determines the
classifi cation of its fi nancial liabilities at initial recognition.
Financial liabilities are recognised initially at fair value less, in the case of loans and borrowings, any directly attributable
transaction costs.
The Group’s and the Company’s fi nancial liabilities include trade and other payables and loans and borrowings.
Subsequent measurement
The subsequent measurement of fi nancial liabilities depends on their classifi cation as follows:
Loans and borrowings
Subsequent to initial recognition, loans and borrowings are measured at amortised cost using the effective interest rate
method as stated in Note 2.8 (v).
Gains and losses are recognised in the profi t or loss when the liabilities are derecognised as well as through the amortisation
process.