Notes to the Financial Statements For the financial year ended 31 December 2024 3 MATERIAL ACCOUNTING POLICIES (CONTINUED) 3.2 Financial instruments (continued) (i) Non-derivative financial assets (continued) At subsequent measurement • Financial assets at amortised cost Financial assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in interest income using the effective interest rate method. • Equity investments designated as at FVOCI The Company has elected to recognise changes in fair value of equity securities not held for trading in other comprehensive income (“OCI”) as these are strategic investments and the Company considers this to be more relevant. Movements in fair values of equity investments classified as FVOCI are presented as “net change in fair value of equity investments designated as at FVOCI” in OCI. Dividends from equity investments are recognised in “Other income” in profit or loss. On disposal of an equity investment, any difference between the carrying amount and sales proceed amount would be recognised in OCI and transferred to revenue reserve along with the amount previously recognised in OCI relating to that asset. (ii) Non-derivative financial liabilities The Company classifies non-derivative financial liabilities under the other financial liabilities category. Such financial liabilities are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest rate method. Other financial liabilities comprise trade and other payable, and loan from a related corporation. (iii) Derecognition Financial assets are derecognised if the Company’s contractual rights to the cash flows from the financial assets expire or if the Company transfers the financial assets to another party without retaining control or transfers substantially all the risks and rewards of the assets. The Company derecognises a financial liability when its contractual obligations are discharged, cancelled or expired. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss. (iv) Offsetting Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. (v) Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank deposits which are subject to an insignificant risk of change in value. 292 CapitaLand Ascott Trust
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