64
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2014
NOTES TO THE
FINANCIAL STATEMENTS
for the financial year ended 31 December 2014
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT’D)
2.12 Financial Instruments (cont’d)
(a)
Financial assets (cont’d)
Subsequent measurement (cont’d)
(iii)
Available-for-sale financial assets (cont’d)
Investments in equity instruments whose fair value cannot be reliably measured are
measured at cost less impairment loss.
De-recognition
A financial asset is derecognised where the contractual right to receive cash flows from the
asset has expired. On de-recognition 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.
(b)
Financial liabilities
Initial recognition and measurement
Financial liabilities are recognised when, and only when, the Group becomes a party to the
contractual provisions of the financial instrument. The Group determines the classification of
its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities
not at fair value through profit or loss, directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
(i)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held
for trading. Financial liabilities are classified as held for trading if they are acquired
for the purpose of selling in the near term. This category includes derivative financial
instruments entered into by the Group that are not designated as hedging instruments
in hedge relationships. Separated embedded derivatives are also classified as held
for trading unless they are designated as effective hedging instruments.
