2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.12 Financial instruments (continued)
(a)
Financial assets (continued)
Subsequent measurement (continued)
(iii)
Available-for-sale financial assets
Available-for-sale financial assets include equity and debt securities. Equity investments
classified as available-for-sale are those, which are neither classified as held for trading
nor designated at fair value through profit or loss. Debt securities in this category are
those which are intended to be held for an indefinite period of time and which may
be sold in response to needs for liquidity or in response to changes in the market
conditions.
After initial recognition, available-for-sale financial assets are subsequently measured
at fair value. Any gains or losses from changes in fair value of the financial assets 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 de-recognised.
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.
64
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
HG METAL MANUFACTURING LIMITED
ANNUAL REPORT 2015
