Financial liabilities at fair value through surplus or deficit
Financial liabilities at fair value through surplus or deficit include
financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through surplus or deficit.
Loans and borrowings
After initial recognition, interest bearing loans and borrowings are
subsequently measured at amortized cost using the effective interest
method. Gains and losses are recognized in surplus or deficit when the
liabilities are derecognized as well as through the effective interest method
amortization process.
Amortized cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the
effective interest rate.
Derecognition
A financial liability is derecognized when the obligation under the liability
is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability
are substantially modified, such an exchange or modification is treated as
a derecognition of the original liability and the recognition of a new
liability.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount
reported in the consolidated statement of financial position if, there is a
currently enforceable legal right to offset the recognized amounts and
there is an intention to settle on a net basis, or to realize the assets and
settle the liabilities simultaneously.
Fair value of financial instruments
The fair value of financial instruments that are traded in active markets at
each reporting date is determined by reference to quoted market prices or
dealer price quotations (bid price for long positions and ask price for short
positions), without any deduction for transaction costs.
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