NOTES TO FINANCIAL STATEMENTS
December 31, 2015
2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Themeasurement period is the period from the date of acquisition to the date the Group obtains complete information
about facts and circumstances that existed as of the acquisition date and is subject to a maximum of one year from
acquisition date.
FINANCIAL INSTRUMENT – Financial assets and financial liabilities are recognised on the Group’s statement of
financial position when the Group becomes a party to the contractual provisions of the instrument.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial instrument and of allocating
interest income or expense over the relevant period. The effective interest rate is the rate that exactly discounts
estimated future cash receipts or payments (including all fees on points paid or received that form an integral part
of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the
financial instrument, or where appropriate, a shorter period. Income and expense are recognised on an effective
interest basis for debt instruments other than those financial instruments “at fair value through profit or loss”.
Financial assets
All financial assets are recognised and de-recognised on a trade date where the purchase or sale of an investment
is under a contract whose terms require delivery of the investment within the timeframe established by the market
concerned, and are initially measured at fair value, plus transaction costs except for those financial assets classified
as at fair value through profit or loss which are initially measured at fair value.
Financial assets are classified into the following specified categories: “financial assets at fair value through profit or
loss” and “loans and receivables”. The classification depends on the nature and purpose of financial assets and is
determined at the time of initial recognition.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets are classified as at FVTPL where the financial asset is either held-for-trading or it is designated as at
FVTPL.
A financial asset is classified as held-for-trading if:
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Financial assets at FVTPL are stated at fair value, with any resultant gain or loss recognised in profit or loss. The
net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is
included in “other operating income” or “other operating expense” line in the consolidated statement of profit or loss.
Fair value is determined in the manner described in Note 4 (c) (vi).
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