Baker Technology LimitedAnnual Report 2014
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2.
Summary of significant accountingpolicies (cont’d)
2.10
Financial instruments (cont’d)
(a)
Financial assets (cont’d)
Subsequentmeasurement (cont’d)
(ii)
Loans and receivables
Non-derivativefinancial assetswithfixedordeterminablepayments thatarenotquoted in
anactivemarket areclassifiedas loansand receivables. Subsequent to initial recognition,
loansand receivablesaremeasuredatamortisedcostusing theeffective interestmethod,
less impairment. Gains and losses are recognised in profit or loss when the loans and
receivables arederecognisedor impaired, and through the amortisationprocess.
(iii)
Available-for-sale financial assets
Available-for-sale financial assets include equity anddebt securities. Equity investments
classified as available-for-sale are those, which are neither classified as held for trading
nor designated at fair value through profit or loss. Debt securities in this category are
those which are intended to be held for an indefinite period of time and whichmay be
sold in response toneeds for liquidityor in response to changes in themarket conditions.
After initial recognition,available-for-salefinancialassetsaresubsequentlymeasuredat fair
value.Anygainsor losses fromchanges in fair valueof thefinancial asset are recognised in
other comprehensive income, except that impairment losses, foreignexchangegains and
lossesonmonetary instrumentsand interestcalculatedusing theeffective interestmethod
are recognised inprofit or loss. The cumulativegainor losspreviously recognised inother
comprehensive income is reclassified from equity to profit or loss as a reclassification
adjustmentwhen thefinancial asset isderecognised.
Investments in equity instruments whose fair value cannot be reliably measured are
measuredat cost less impairment loss.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
