HAW PAR CORPORATION LIMITED
64
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
2.
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
(h)
Impairment of non-financial assets
(continued)
(2)
Intangible assets, Property, plant and equipment and Investments in subsidiaries and associated
companies (continued)
For the purpose of impairment testing of these assets, recoverable amount (i.e. the higher of the fair
value less cost to sell and value in use) is determined on an individual asset basis unless the asset
does not generate cash inflows that are largely independent of those from other assets. If this is the
case, recoverable amount is determined for the CGU to which the asset belongs.
If the recoverable amount of the asset (or CGU) is estimated to be less than its carrying amount, the
carrying amount of the asset (or CGU) is reduced to its recoverable amount.
The difference between the carrying amount and recoverable amount is recognised as an impairment
loss in profit or loss.
An impairment loss for an asset other than goodwill is reversed if, and only if, there has been a
change in the estimates used to determine the asset’s recoverable amount since the last impairment
loss was recognised. The carrying amount of an asset other than goodwill is increased to its revised
recoverable amount, provided that this amount does not exceed the carrying amount that would have
been determined (net of accumulated amortisation or depreciation) had no impairment loss been
recognised for the asset in prior years.
A reversal of impairment loss for an asset other than goodwill is recognised in profit or loss.
(i)
Financial assets
(1)
Classification
The Group classifies its investments in financial assets in the following categories: loans and receivables,
available-for-sale and at fair value through profit or loss. The classification depends on the nature
of the asset and the purpose for which the assets have been acquired. Management determines the
classification of its financial assets at initial recognition.
(i)
Loans and receivables
Loans and receivables (excluding prepayments) are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. They are presented as current
assets, except those maturing later than 12 months after the end of the reporting period which
are classified as non-current assets.
(ii)
Financial assets, available-for-sale
Financial assets, available-for-sale are non-derivatives that are either designated in this category
or not classified in any of the other categories.
