Page 237 - BTSGroup ONE REPORT 2021/22_EN

BTS Group Holdings Public Company Limited 6.4 Notes to Consolidated Financial Statements 235
Annual Report 2021/22

Classification and measurement of financial assets Financial assets designated at FVOCI (equity instruments)

Financial assets are classified, at initial recognition, as to be subsequently Upon initial recognition, the Group can elect to irrevocably classify its
measured at amortised cost, fair value through other comprehensive equity investments which are not held for trading as equity instruments
income (“FVOCI”), or fair value through profit or loss (“FVTPL”). designated at FVOCI. The classification is determined on an instrument-
The classification of financial assets at initial recognition is driven by the by-instrument basis.
Group’s business model for managing the financial assets and the
contractual cash flows characteristics of the financial assets. Gains and losses recognised in other comprehensive income on these
financial assets are never recycled to profit or loss.
Financial assets at amortised cost

The Group measures financial assets at amortised cost if the financial Dividends are recognised as other income in profit or loss, except
asset is held in order to collect contractual cash flows and the contractual when the dividends clearly represent a recovery of part of the cost of
terms of the financial asset give rise on specified dates to cash flows the financial asset, in which case, the gains are recognised in other
that are solely payments of principal and interest on the principal comprehensive income.
amount outstanding.
Equity instruments designated at FVOCI are not subject to impairment
Financial assets at amortised cost are subsequently measured using assessment.
the effective interest rate (“EIR”) method and are subject to impairment.
Gains and losses are recognised in profit or loss when the asset is Financial assets at FVTPL
derecognised, modified or impaired. Financial assets measured at FVTPL are carried in the statement of
financial position at fair value with net changes in fair value including
Financial assets at FVOCI (debt instruments) interest income recognised in profit or loss.

The Group measures financial assets at FVOCI if the financial asset is
held to collect contractual cash flows and to sell the financial asset and These financial assets include derivatives, security investments held for
the contractual terms of the financial asset give rise on specified dates trading, equity investments which the Group has not irrevocably elected
to cash flows that are solely payments of principal and interest on the to classify at FVOCI and financial assets with cash flows that are not
principal amount outstanding. solely payments of principal and interest.

Interest income, foreign exchange revaluation and impairment losses Dividends on listed equity investments are recognised as other income
or reversals are recognised in profit or loss and computed in the same in profit or loss.
manner as for financial assets measured at amortised cost. The remaining
fair value changes are recognised in other comprehensive income. Classification and measurement of financial liabilities
Upon derecognition, the cumulative fair value change recognised in other Except for derivative liabilities, at initial recognition the Group’s financial
comprehensive income is recycled to profit or loss. liabilities are recognised at fair value net of transaction costs and