Page 134 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

(b) Loans and receivables

Financial assets categorised as loans and receivables were subsequently measured
at amortised cost using the effective interest method.

All financial assets are subject to review for impairment (see Note 2(d)(i)).

Financial liabilities

current financial year

The categories of financial liabilities at initial recognition are as follows:

Amortised cost

Financial liabilities not categorised as fair value through profit or loss are subsequently
measured at amortised cost using the effective interest method.

Interest expense and foreign exchange gains and losses are recognised in the profit or
loss. Any gains or losses on derecognition are also recognised in the profit or loss.

Previous financial year

In the previous financial year, financial liabilities of the SC were subsequently measured at
amortised cost.

(iii) derecognition

A financial asset or part of it is derecognised when, and only when, the contractual rights
to the cash flows from the financial asset expire or transferred, or control of the asset
is not retained or substantially all of the risks and rewards of ownership of the financial
asset are transferred to another party. On derecognition of a financial asset, the difference
between the carrying amount and the sum of the consideration received (including any
new asset obtained less any new liability assumed) is recognised in the profit or loss.

A financial liability or a part of it is derecognised when, and only when, the obligation
specified in the contract is discharged, cancelled or expires. A financial liability is also
derecognised when its terms are modified and the cash flows of the modified liability are
substantially different, in which case, a new financial liability based on modified terms is
recognised at fair value. On derecognition of a financial liability, the difference between
the carrying amount of the financial liability extinguished or transferred to another
party and the consideration paid, including any non-cash assets transferred or liabilities
assumed, is recognised in profit or loss.

(iv) offsetting

Financial assets and financial liabilities are offset and the net amount presented in the
statement of financial position when, and only when, the SC currently has a legally
enforceable right to set off the amounts and it intends either to settle them on a net basis
or to realise the asset and liability simultaneously.

124 | PART 5 »» STATEMENTS, STATiSTiCS ANd ACTiviTiES

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