FORGING AHEAD - Tradewinds Plantation Berhad

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FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
4. SIGNIFICANT ACCOUNTING POLICIES (continued)
4.11 Financial instruments (continued)
(a) Financial assets (continued)
(ii) Held-to-maturity investments
Financial assets classified as held-to-maturity comprise non-derivative financial assets with fixed or
determinable payments and fixed maturity that the Group and the Company have the positive intention and
ability to hold to maturity.
Subsequent to initial recognition, financial assets classified as held-to-maturity are measured at amortised
cost using the effective interest method. Gains or losses on financial assets classified as held-to-maturity
are recognised in profit or loss when the financial assets are derecognised or impaired, and through the
amortisation process.
(iii) Loans and receivables
Financial assets classified as loans and receivables comprise non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market.
Subsequent to initial recognition, financial assets classified as loans and receivables are measured at
amortised cost using the effective interest method. Gains or losses on financial assets classified as loans and
receivables are recognised in profit or loss when the financial assets are derecognised or impaired, and
through the amortisation process.
(iv) Available-for-sale financial assets
Financial assets classified as available-for-sale comprise non-derivative financial assets that are designated
as available for sale or are not classified as loans and receivables, held-to-maturity investments or financial
assets at fair value through profit or loss.
Subsequent to initial recognition, financial assets classified as available-for-sale are measured at fair value.
Any gains or losses arising from changes in the fair value of financial assets classified as available-for-sale
are recognised directly in other comprehensive income, except for impairment losses and foreign exchange
gains and losses, until the financial asset is derecognised, at which time the cumulative gains or losses
previously recognised in other comprehensive income are recognised in profit or loss. However, interest
calculated using the effective interest method is recognised in profit or loss whilst dividends on availablefor-sale
equity instruments are recognised in profit or loss when the Group’s right to receive payment is
established.
Cash and cash equivalents include cash and bank balances, bank overdrafts, deposits and other short term,
highly liquid investments with original maturities of three (3) months or less, which are readily convertible to cash
and are subject to insignificant risk of changes in value.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010