ANNUAL REPORT 2015 |
115
NOTES TO THE FINANCIAL STATEMENTS
30 June 2015 (cont’d)
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
4.11 Financial instruments (cont’d)
(c) Equity (cont’d)
Interim dividends to shareholders are recognised in equity in the period in which they are declared. Final dividends
are recognised upon the approval of shareholders in a general meeting.
The Group measures a liability to distribute non-cash assets as a dividend to the owners of the Company at the
fair value of the assets to be distributed. The carrying amount of the dividend is remeasured at the end of each
reporting period and at the settlement date, with any changes recognised directly in equity as adjustments to the
amount of the distribution. On settlement of the transaction, the Group recognises the difference, if any, between
the carrying amount of the assets distributed and the carrying amount of the liability in profit or loss.
When the Group repurchases its own shares, the shares repurchased would be accounted for using the treasury
stock method.
Where the treasury stock method is applied, the shares repurchased and held as treasury shares shall be measured
and carried at the cost of repurchase on initial recognition and subsequently. It shall not be revalued for subsequent
changes in the fair value or market price of the shares.
The carrying amount of the treasury shares shall be offset against equity in the statement of financial position.
To the extent that the carrying amount of the treasury shares exceeds the share premium account, it shall be
considered as a reduction of any other reserves as may be permitted by the Companies Act,1965 in Malaysia.
No gain or loss is recognised inprofit or loss on the purchase, sale, issue or cancellation of the own equity instruments
of the Company. If such shares are issued by resale, any difference between the sales consideration and the carrying
amount is shown as a movement in equity.
4.12 Impairment of financial assets
The Group assesses whether there is any objective evidence that a financial asset is impaired at the end of each reporting
period.
(a) Loans and receivables
The Group collectively considers factors such as the probability of bankruptcy or significant financial difficulties
of the receivable, and default or significant delay in payments by the receivable, to determine whether there is
objective evidence that an impairment loss on loans and receivables has occurred. Other objective evidence
of impairment include historical collection rates determined on an individual basis and observable changes in
national or local economic conditions that are directly correlated with the historical default rates of receivables.
If any such objective evidence exists, the amount of impairment loss is measured as the difference between the
financial asset’s carrying amount and the present value of estimated future cash flows discounted at the financial
asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of loans and receivables are reduced through the use of an allowance account.
If in a subsequent period, the amount of the impairment loss decreases and it objectively relates to an event
occurring after the impairment was recognised, the previously recognised impairment loss is reversed to the
extent that the carrying amount of the asset does not exceed its amortised cost at the reversal date. The amount of
impairment reversed is recognised in profit or loss.
