APM AUTOMOTIVE HOLDINGS BERHAD
54
NOTES TO THE
FINANCIAL STATEMENTS
2.
Significant accounting policies (continued)
(b) Foreign currency (continued)
(ii) Operations denominated in functional currencies other than Ringgit Malaysia (RM) (continued)
Foreign currency differences are recognised in other comprehensive income and accumulated in the
foreign currency translation reserve (“FCTR”) in equity. However, if the operation is a non-wholly-
owned subsidiary, then the relevant proportionate share of the translation difference is allocated to
the non-controlling interests. When a foreign operation is disposed of such that control, significant
influence or joint control is lost, the cumulative amount in the FCTR related to that foreign operation is
reclassified to profit or loss as part of the gain or loss on disposal.
When the Group disposes of only part of its interest in a subsidiary that includes a foreign operation,
the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the
Group disposes of only part of its investment in an associate or joint venture that includes a foreign
operation while retaining significant influence or joint control, the relevant proportion of the cumulative
amount is reclassified to profit or loss.
(c) Financial instruments
(i)
Initial recognition and measurement
A financial asset or a financial liability is recognised in the statement of financial position when,
and only when, the Group or the Company becomes a party to the contractual provisions of the
instrument.
A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument
not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition
or issue of the financial instrument.
(ii) Financial instrument categories and subsequent measurement
The Group and the Company categorise financial instruments as follows:
Financial assets
(a) Financial assets at fair value through profit or loss
Fair value through profit or loss category comprises financial assets that are held for trading,
including derivatives (except for a derivative that is a designated and effective hedging
instrument) or financial assets that are specifically designated into this category upon initial
recognition.
Other financial assets categorised as fair value through profit or loss are subsequently measured
at their fair values with the gain or loss recognised in profit or loss.
(b) Loans and receivables
Loans and receivables category comprises trade and other receivables and cash and cash
equivalents.
Financial assets categorised as loans and receivables are subsequently measured at amortised
cost using the effective interest method.
All financial assets, except for those measured at fair value through profit or loss, are subject to
review for impairment (see Note 2(j)).
