MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...

Notes to The Financial Statements (cont’d)
2. SUMMARy of SIGNIfICANT ACCoUNTING polICIES (CoNT’D)
2.3 Significant Accounting policies (cont’d)
2.3.11 financial Assets (cont’d)
(iv) Available-for-sale financial assets
Available-for-sale are financial assets that are designated as available for sale or are not classified in
any of the three preceding categories.
After initial recognition, available-for-sale financial assets are measured at fair value. Any gains or
losses from changes in fair value of the financial asset are recognised in other comprehensive income,
except that impairment losses, foreign exchange gains and losses on monetary instruments and
interest calculated using the effective interest method are recognised in profit or loss. The cumulative
gain or loss previously recognised in other comprehensive income is reclassified from equity to profit
or loss as a reclassification adjustment when the financial asset is derecognised. Interest income
calculated using effective interest method is recognised in profit or loss. Dividends on an availablefor-sale
equity instruments are recognised in profit or loss when the Group and the Company’s right
to receive payment is established.
Investment in equity instruments whose fair value cannot be reliably measured are measured at cost
less impairment loss.
Available-for-sale financial assets are classified as non-current assets unless they are expected to be
realised within 12 months after the end of the reporting period.
A financial asset is derecognised where the contractual right to receive cash flows from the asset has
expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount and
the sum of the consideration received and any cumulative gain or loss that had been recognised in other
comprehensive income is recognised in profit or loss.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets
within the period generally established by regulation or convention in the market place concerned. All
regular way purchases and sales of financial assets are recognised or derecognised on the trade date i.e.,
the date that the Group and the Company commit to purchase or sell the asset.
2.3.12 Impairment of financial Assets
The Group and the Company assess at the end of each reporting period whether there is any objective
evidence that a financial asset is impaired.
(i) Trade and other receivables and other financial assets carried at amortised cost
To determine whether there is objective evidence that an impairment loss on financial assets has
been incurred, the Group and the Company consider factors such as the probability of insolvency or
significant financial difficulties of the debtor and default or significant delay in payments. For certain
categories of financial assets, such as trade receivables, assets that are assessed not to be impaired
individually are subsequently assessed for impairment on a collective basis based on similar risk
characteristics. Objective evidence of impairment for a portfolio of receivables could include the
Group and the Company’s past experience of collecting payments, an increase in the number of
delayed payments in the portfolio past the average credit period and observable changes in national
or local or economic conditions that correlate with default on receivables.
52 MITRAJAYA HOLDINGS BERHAD ANNUAL REPORT 2011