- 13 - - Fair value through other comprehensive income (FVTOCI) - A financial asset will be measured at FVTOCI when it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. Movements in the carrying amount are taken through other comprehensive income, except for the recognition of impairment losses and interest income using effective interest rate method. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified to profit or loss or retained earnings. - Fair value through profit or loss (FVTPL) - A financial asset that does not meet the criteria for amortised cost or FVTOCI are measured at FVTPL. Impairment The Group assesses on a forward-looking basis the expected credit loss associated with its financial assets carried at amortised cost. The Group applies simplified approach for credit-impaired consideration which depends on the significant of credit risk. In determining allowance of expected credit loss, the financial asset is considered to have low credit risk and no significant incremental of credit risk since initial recognition. The Group will not recognise any allowance of expected credit loss. Reversals of impairment An impairment loss in respect of a financial asset is reversed if the subsequent increase in recoverable amount can be related objectively to an event occurring after the impairment loss was recognised in profit or loss. Derecognition of financial assets The Group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. In addition, on derecognition of an investment in a debt instrument classified as at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss. In contrast, on derecognition of an investment in equity instrument which the Group has elected on initial recognition to measure at FVTOCI, the cumulative gain or loss previously accumulated in the investments revaluation reserve is not reclassified to profit or loss, but is transferred to retained earnings. 315 NOTES TO THE FINANCIAL STATEMENTS IRPC PUBLIC COMPANY LIMITED
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