Page 158 - KWAP_AR2022

156 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) FoR BEttER REtURNS

notes to the
financial statements
for the year ended 31 december 2022

2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
2.7 Financial Assets (continued)

(c) Reclassification of financial assets

the group and KWap may choose to reclassify non-derivative financial assets out from the fVtpl category
(other than equity instruments), in rare circumstances, in the event the financial assets are no longer held
for the purpose of selling or repurchasing in the short term. in addition, the group and KWap may also
choose to reclassify financial assets that would satisfy the definition of loans and receivables out of the
fVtpl or fVoci category if there is the intention and ability to hold the financial asset for the foreseeable
future or until maturity by the group and KWap.

the group and KWap reclassify debt instruments when and only when there is a change in the business
model for managing those assets.

2.8 Financial Liabilities
financial liabilities are classified according to the substance of the contractual arrangements entered into and
the definition of financial liabilities.
financial liabilities, within the scope of the mfrs 9, are recognised in the statement of financial position when,
and only when, the group and KWap become a party to the contractual provisions of the financial instruments.
the group and KWap classify its financial liabilities in the following measurement categories - amortised cost or
fVtpl. financial liabilities are classified and subsequently measured at amortised cost, except for:
(i) financial liabilities at fVtpl; and
(ii) financial guarantee contracts and loan commitments.

Amortised Cost
financial liabilities issued by the group and KWap are classified as financial liabilities at amortised cost,
where the substance of the contractual arrangement results in an obligation by the group and KWap either to
deliver cash or another financial asset to the holder or to satisfy the obligation other than by the exchange of a
fixed amount of cash or another financial asset for a fixed number of own equity shares.

non-derivative financial liabilities are initially recognised at the fair value of consideration received less directly
attributable transaction costs, if any. subsequent to the initial recognition, non-derivative financial liabilities are
measured at amortised cost using the effective interest method. amortised cost is calculated by taking into
consideration any discount or premium on acquisition and fees or costs that are an integral part of the effective
interest rate. financial liabilities measured at amortised cost include deposits from customers, deposits from
banks, repurchase agreements and debt securities issued and other borrowed funds.