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Annual Report 2013
KPJ HEALTHCARE BERHAD
187
2.
Summary of signi cant accounting policies (continued)
2.14 Financial assets (continued)
(a)
Loans and receivables
Financial assets with xed or determinable payments that are not quoted in an active market are classi ed as loans and
receivables.
Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method.
Gains and losses are recognised in pro t or loss when the loans and receivables are derecognised or impaired, and through
the amortisation process.
Loans and receivables are classi ed as current assets, except for those having maturity dates later than 12 months after the
reporting date which are classi ed as non-current.
(b)
Available-for-sale nancial assets
Available-for-sale nancial assets are nancial assets that are designated as available for sale or are not classi ed as
nancial assets at fair value through pro t or loss, loans and receivables or held-to-maturity investments.
After initial recognition, available-for-sale nancial assets are measured at fair value. Any gains or losses from changes in fair
value of the nancial 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
pro t or loss. The cumulative gain or loss previously recognised in other comprehensive income is reclassi ed from equity to
pro t or loss as a reclassi cation adjustment when the nancial asset is derecognised. Interest income calculated using the
effective interest method is recognised in pro t or loss. Dividends on an available-for-sale equity instrument are recognised
in pro t or loss when the Group’s right to receive payment is established.
Investments in equity instruments whose fair value cannot be reliably measured are measured at cost less impairment loss.
Available-for-sale nancial assets are classi ed as non-current assets unless they are expected to be realised within 12
months after the reporting date.
A nancial asset is derecognised where the contractual right to receive cash ows from the asset has expired. On
derecognition of a nancial 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 pro t or
loss.
Regular way purchases or sales are purchases or sales of nancial assets that require delivery of assets within the period
generally established by regulation or convention in the marketplace concerned. All regular way purchases and sales of
nancial assets are recognised or derecognised on the trade date, the date that the Group and the Company commit to
purchase or sell the asset.
Notes to the
Financial Statements
For the financial year ended 31 December 2013
(continued)