NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2024 (CURRENCY – SINGAPORE DOLLARS UNLESS OTHERWISE STATED) C15 Classification and fair value of financial instruments (continued) Recognition and measurement (continued) (a) Non-derivative financial assets and liabilities (continued) Classification and subsequent measurement (continued) Financial assets Classification Subsequent measurement FVTPL* All other financial assets are classified as measured at FVTPL. Financial assets that are held-for-trading or are managed, and whose performance is evaluated on a fair value basis, are measured at FVTPL. * On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise. Measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss. Business model assessment The Group makes an assessment of the objective of a business model in which an asset is held at a portfolio level because this best reflects the way the business is managed, and information is provided to management. The information considered includes: • The stated policies and objectives for the portfolio and the operation of those policies in practice; • How the performance of the portfolio is evaluated and reported to the Group’s management; • The risks that affect the performance of the business model and how those risks are managed; • How managers of the portfolio are compensated; and • The frequency, volume and timing of disposals in prior periods, the reasons for such disposals and its expectations about future activity. 200 ST ENGINEERING | ANNUAL REPORT 2024
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