Maxis Berhad
Annual Report 2015
page
98
Notes to the Financial Statements
31 December 2015
3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(n) Payables
Payables, including accruals, represent liabilities for goods received and services rendered to the Group and the Company prior to the end
of the financial year and which remain unpaid. Payables are classified as current liabilities if payment is due within one year or less. If not,
they are presented as non-current liabilities.
Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
(o) Borrowings
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the
cost of the assets. Other borrowing costs are recognised as an expense in the statement of profit or loss when incurred.
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or
all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is
probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over
the period of the facility to which it relates.
Interest expense, redeemable preference shares dividends, losses and gains relating to a financial instrument, or a component part, classified
as a liability is reported within finance costs in the statement of profit or loss.
Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and
the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in statement of profit or loss within
finance costs.
Borrowings are classified as current liabilities unless the Group and the Company have an unconditional right to defer settlement of the
liability for at least 12 months after the end of the reporting period.
(i)
Borrowings in a designated hedging relationship
Borrowings subject to cash flow hedges are recognised initially at fair value based on the applicable spot price plus any transaction
costs that are directly attributable to the issue of borrowing. These borrowings are subsequently carried at amortised costs, translated
at applicable spot exchange rate at reporting date. Any difference between the final amount paid to discharge the borrowing and the
initial proceeds is recognised in the statement of profit or loss over the borrowing period using the effective interest method.
Currency gains or losses on the borrowings are recognised in the statement of profit or loss, along with the associated gains or losses
on the hedging instrument, which have been reclassified from the cash flow hedging reserve to the statement of profit or loss.
(ii)
Borrowings not in a designated hedging relationship
Borrowings not in a designated hedging relationship are initially recognised at fair value plus transaction costs that are directly
attributable to the issue of borrowing. These borrowings are subsequently carried at amortised costs. Any difference between
the final amount paid to discharge the borrowing and the initial proceeds is recognised in the statement of profit or loss over the
borrowing period using the effective interest method.
