FORGING AHEAD - Tradewinds Plantation Berhad
FORGING AHEAD - Tradewinds Plantation Berhad
FORGING AHEAD - Tradewinds Plantation Berhad
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120<br />
FINANCIAL STATEMENTS<br />
NOTES TO THE FINANCIAL STATEMENTS<br />
31 DECEMBER 2010<br />
4. SIGNIFICANT ACCOUNTING POLICIES (continued)<br />
4.11 Financial instruments (continued)<br />
(a) Financial assets (continued)<br />
(ii) Held-to-maturity investments<br />
Financial assets classified as held-to-maturity comprise non-derivative financial assets with fixed or<br />
determinable payments and fixed maturity that the Group and the Company have the positive intention and<br />
ability to hold to maturity.<br />
Subsequent to initial recognition, financial assets classified as held-to-maturity are measured at amortised<br />
cost using the effective interest method. Gains or losses on financial assets classified as held-to-maturity<br />
are recognised in profit or loss when the financial assets are derecognised or impaired, and through the<br />
amortisation process.<br />
(iii) Loans and receivables<br />
Financial assets classified as loans and receivables comprise non-derivative financial assets with fixed or<br />
determinable payments that are not quoted in an active market.<br />
Subsequent to initial recognition, financial assets classified as loans and receivables are measured at<br />
amortised cost using the effective interest method. Gains or losses on financial assets classified as loans and<br />
receivables are recognised in profit or loss when the financial assets are derecognised or impaired, and<br />
through the amortisation process.<br />
(iv) Available-for-sale financial assets<br />
Financial assets classified as available-for-sale comprise non-derivative financial assets that are designated<br />
as available for sale or are not classified as loans and receivables, held-to-maturity investments or financial<br />
assets at fair value through profit or loss.<br />
Subsequent to initial recognition, financial assets classified as available-for-sale are measured at fair value.<br />
Any gains or losses arising from changes in the fair value of financial assets classified as available-for-sale<br />
are recognised directly in other comprehensive income, except for impairment losses and foreign exchange<br />
gains and losses, until the financial asset is derecognised, at which time the cumulative gains or losses<br />
previously recognised in other comprehensive income are recognised in profit or loss. However, interest<br />
calculated using the effective interest method is recognised in profit or loss whilst dividends on availablefor-sale<br />
equity instruments are recognised in profit or loss when the Group’s right to receive payment is<br />
established.<br />
Cash and cash equivalents include cash and bank balances, bank overdrafts, deposits and other short term,<br />
highly liquid investments with original maturities of three (3) months or less, which are readily convertible to cash<br />
and are subject to insignificant risk of changes in value.<br />
TRADEWINDS PLANTATION BERHAD<br />
Annual Report 2010