axiata group berhad | annual report 2015
134
NOTES TO THE
FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2015
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(d) Investments in subsidiaries and associates
In the Company’s separate financial statements, investments in subsidiaries and associates are stated at cost less accumulated impairment losses.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable
amount. See accounting policy Note 3(e) to the financial statements on impairment of non-financial assets.
On disposal of an investment, the difference between the disposal proceed and its carrying amount of the investment is recognised in profit or
loss. Disposal-related costs are expensed as incurred.
(e) Impairment of non-financial assets (excluding goodwill)
Assets that have an indefinite useful life are not subject to amortisation and are tested for impairment annually, and as and when events or
circumstances occur indicating that an impairment may exist.
Assets with definite useful life are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less cost to sell (“FVLCS”) and value-in-use (“VIU”). For the
purpose of assessing impairment, assets are grouped at the lowest level for which there are separately identifiable cash flows (“CGUs”). Assets
that suffered an impairment are reviewed for possible reversal at the end of reporting period.
For investment in associates, when assessing FVLCS, the unit of account is the investment in associate as a whole. Accordingly, for listed
associates, the quoted price is adjusted to reflect management’s estimate of block discounts on similar purchases of non-controlling interests.
The impairment loss is charged to profit or loss. Any subsequent increase in recoverable amount is recognised in the profit or loss.
(f) Financial assets
(i) Classification
The Group and the Company classify its financial assets in the following categories: at FVTPL, loans and receivables, available-for-sale
(“AFS”) and held-to-maturity (“HTM”). The classification depends on the purpose for which the financial assets were acquired. Management
determines the classification at initial recognition.
(a) Financial assets at FVTPL
Financial assets at FVTPL are financial assets held for trading. A financial asset is classified in this category if it is acquired or incurred
principally for the purpose of selling or repurchasing it in the near term. Derivatives are also categorised as held for trading unless
they are designated as hedges. See Note 19 to the financial statements on derivative financial instruments and hedging activities.
Assets in this category are classified as current assets if expected to be settled within twelve (12) months; otherwise, they are
classified as non-current.
(b) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market. They are included in current assets, except for maturities greater than twelve (12) months after the end of the reporting
period. These are classified as non-current assets.
(c) AFS financial assets
AFS financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.
They are included in non-current assets unless the investment matures or management intends to dispose of it within twelve (12)
months from the end of the reporting period.
