90
Baker Technology LimitedAnnual Report 2014
2.
Summaryof significant accountingpolicies (cont’d)
2.10
Financial instruments (cont’d)
(a)
Financial assets (cont’d)
De-recognition
A financial asset is derecognisedwhere the contractual right to receive cash flows from the asset
hasexpired.Onderecognitionof afinancial asset in itsentirety, thedifferencebetween thecarrying
amount and the sum of the consideration received and any cumulative gain or loss that hadbeen
recognised inother comprehensive income is recognised inprofit or loss.
(b)
Financial liabilities
Initial recognition andmeasurement
Financial liabilities are recognised when, and only when, the Group becomes a party to the
contractual provisions of the financial instrument. The Group determines the classification of its
financial liabilities at initial recognition.
All financial liabilitiesare recognised initiallyat fair value,plus, in thecaseof financial liabilitiesnot at
fair value throughprofit or loss, directlyattributable transaction costs.
Subsequentmeasurement
Themeasurement of financial liabilitiesdependson their classificationas follows:
(i)
Financial liabilities at fair value throughprofit or loss
Financial liabilitiesat fairvalue throughprofitor loss includefinancial liabilitiesheld for trading.
Financial liabilities are classified as held for trading if they are acquired for the purpose of
selling in thenear term.Thiscategory includesderivativefinancial instrumentsentered intoby
theGroup that arenotdesignatedashedging instruments inhedge relationships. Separated
embedded derivatives are also classified as held for trading unless they are designated as
effectivehedging instruments.
Subsequent to initial recognition, financial liabilities at fair value throughprofit or loss are
measuredat fair value.Anygainsor lossesarising fromchanges in fair valueof thefinancial
liabilities are recognised inprofit or loss.
TheGroup has not designated any financial liabilities upon initial recognition at fair value
throughprofit or loss.
NOTES TO THE
FINANCIAL STATEMENTS
For the financial year ended 31December 2014
