related services, which are substantially within a single business segment and this is consistent with the current practice of internal reporting. The Group operates primarily in Malaysia. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 303 45 FINANCIAL INSTRUMENTS Accounting Policy Financial instruments comprise financial assets and financial liabilities as below: Financial assets (a) Classification The Group and the Company classify their financial assets in the following categories: at amortised cost (‘AC’), at FVOCI or FVTPL. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. (i) Financial assets at AC: • The asset is held within a business model whose objective is to collect the contractual cash flows; and • The contractual termsgive rise to cash flows that are solely payments of principal and interest. (ii) Financial assets at FVOCI: • Equity securities which are not held for trading, and which the Group and the Company have irrevocably elected at initial recognition to recognise in this category. These are strategic investments and the Group and the Company consider this classification to be more relevant; and • Debt securities where the contractual cash flows are solely principal and interest and the objective of the Group’s and of the Company’s business model is achieved both by collecting cash flows and selling financial assets. (iii) Financial assets at FVTPL: • Debt instruments that do not qualify for measurement at either AC or FVOCI; • Equity instruments that are held for trading; and • Equity instruments for which the Group and the Company have not elected to recognise fair value gains and losses through OCI. The Group and the Company reclassify debt instruments when and only when its business model for managing those assets changes. (b) Recognition and derecognition Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Group and the