WILLAS-ARRAY ELECTRONICS (HOLDINGS) LIMITED
92
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED MARCH 31, 2016
3.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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Financial instruments
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Financial assets
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Financial assets at FVTPL
Financial assets are classified as FVTPL when financial asset is either held for trading or it is
designated as at FVTPL.
A financial asset is classified as held for trading if:
• it has been acquired principally for the purpose of selling in the near term; or
• on initial recognition it is a part of a portfolio of identified financial instruments that the Group
manages together and has a recent actual pattern of short-term profit-taking; or
• it is a derivative that is not designated and effective as a hedging instrument.
A financial asset other than a financial asset held for trading may be designated as at FVTPL upon
initial recognition if:
• such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise arise; or
• the financial asset forms part of a group of financial assets or financial liabilities or both,
which is managed and its performance is evaluated on a fair value basis, in accordance with
the Group’s documented risk management or investment strategy, and information about the
grouping is provided internally on that basis; or
• it forms part of a contract containing one or more embedded derivatives, and IAS 39 permits
the entire combined contract (asset or liability) to be designated as at FVTPL.
Financial assets at FVTPL are measured at fair value, with any gains or losses arising from
remeasurement recognised directly in profit or loss. The net gain or loss recognised in profit or loss
excludes any dividend or interest earned on the financial assets and is included in the ‘other gains
and losses’ line item. Fair value is determined in the manner described in Note 5.
