DELEUM BERHAD UNISON IN DIVERSITY - ChartNexus

More documents

Recommendations

Info

68 Unison in Diversity Summary of Significant Accounting Policies (continued) For the Financial Year Ended 31 December 2009 E PROPERTY, PLANT AND EQUIPMENT (continued) Freehold land is not depreciated as it has an infinite life. Other property, plant and equipment are depreciated on the straight line basis to write off the cost of each asset to their residual values over their estimated useful lives at the following annual rates: Freehold building 2% Long term leasehold buildings 2% - 5% Office equipment, furniture and fittings 10 - 33 1/3% Renovations 20% Plant, machinery and other equipment 10 - 33 1/3% Motor vehicles 20% Assets under construction represent plant and building in progress and are not depreciated until they are ready for their intended use. Useful lives of assets are reviewed and adjusted where appropriate at balance sheet date. A subsidiary company revised the useful life of wireline equipment from between 5 to 7 years to 10 years effective from 1 January 2009. The revision was accounted for as a change in accounting estimate and as a result, the depreciation charged for the year ended 31 December 2009 was reduced by RM2,826,494 for the Group. At each balance sheet date, the Group assesses whether there is any indication of impairment. If such indications exist, an analysis is performed to assess whether the carrying amount of the asset is fully recoverable. A write down is made if the carrying amount exceeds the recoverable amount (see accounting policy Note R on impairment of non-financial assets). Gains and losses on disposals are determined by comparing proceeds with carrying amount and are included in the income statement. F INVESTMENT PROPERTIES Investment properties, comprising principally land and office buildings, are held for long term rental yields or for capital appreciation or both, and are not occupied by the Group. Investment properties are stated at cost less any accumulated depreciation and impairment losses. Investment properties are depreciated on the straight line basis to write off the costs to their residual values over their estimated useful lives at the rate of 2% per annum. Useful lives of investment properties are reviewed, and are adjusted if appropriate at each balance sheet date. At each balance sheet date, the Group assesses whether there is any indication of impairment. If such indications exist, an analysis is performed to assess whether the carrying amount of the investment property is fully recoverable. A write down is made if the carrying amount exceeds the recoverable amount (see accounting policy Note R on impairment of non-financial assets). On disposal of an investment property, or when it is permanently withdrawn from use and no future economic benefits are expected from its disposal, it shall be de-recognised (eliminated from the balance sheet). The difference between the net disposal proceeds and the carrying amount is recognised in income statement in the financial year of the retirement or disposal.
Summary of Significant Accounting Policies (continued) For the Financial Year Ended 31 December 2009 G INVENTORIES Deleum Berhad Annual Report 2009 69 Inventories are stated at the lower of cost and net realisable value. Cost is determined on the weighted average cost method. Goods purchased for resale are stated at cost. For other inventories, the cost comprises raw materials, direct labour, other direct costs and related production overheads, but excludes borrowings costs. Net realisable value is the estimated selling price in the ordinary course of business, less the costs of completion and selling expenses. H REVENUE RECOGNITION Sale of specialised and oilfield equipment, chemicals and parts are recognised upon delivery and customer acceptance, net of sales taxes and discounts, and after eliminating sales within the Group. Revenue arising from provision of technical and engineering support services is recognised upon performance of services and customer acceptance. Revenues are measured at the fair value of the consideration received or receivable by the Group. In arrangements whereby the criteria set out in Note 3(ii)(b) to the financial statements are not met, the marketing fee earned on the sale is recognised as revenue. Other operating income earned by the Group are recognised on the following basis: (i) Interest income - as it accrues unless collectability is in doubt. (ii) Dividend income - when the Group’s right to receive payment is established. Dividend income earned by the Company is classified as revenue. I TRADE RECEIVABLES Trade receivables are carried at invoice amount less an estimate made for doubtful debts. Bad debts are written off when identified. Included in trade receivables are unbilled revenue for services rendered. The allowance is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. J OPERATING LEASES Leases of assets where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received by the lessor) are charged to the income statement on the straight line basis over the lease period. When an operating lease is terminated before the expiry of lease period, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place. Upfront payments on leasehold land are classified as prepaid lease payments and amortised on a straight line basis over the remaining lease period. K CASH AND CASH EQUIVALENTS For the purposes of the cash flow statements, cash and cash equivalents comprise cash in hand, deposits held at call with banks, bank overdrafts and short-term highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
Page 1 and 2:
deleum berhad (Co. No. 715640-T) No
Page 3:
Deleum Berhad Annual Report 2009 1
Page 6 and 7:
4 Unison in Diversity Notice of Ann
Page 8 and 9:
6 Unison in Diversity Statement Acc
Page 10 and 11:
8 Unison in Diversity Profit Before
Page 12 and 13:
10 Unison in Diversity Corporate In
Page 14 and 15:
12 Unison in Diversity Board of Dir
Page 16 and 17:
14 Unison in Diversity Dato’ Kama
Page 18 and 19:
16 Unison in Diversity
Page 20 and 21: 18 Unison in Diversity
Page 22 and 23: 20 Unison in Diversity OILFIELD EQU
Page 24 and 25: 22 Unison in Diversity
Page 26 and 27: 24 Unison in Diversity Activities o
Page 28 and 29: 26 Unison in Diversity 26 - 30 Octo
Page 30 and 31: 28 Unison in Diversity Activities o
Page 32 and 33: 30 Unison in Diversity Statement of
Page 34 and 35: 32 Unison in Diversity 1. THE BOARD
Page 36 and 37: 34 Unison in Diversity 2. BOARD COM
Page 38 and 39: 36 Unison in Diversity 6. RELATIONS
Page 40 and 41: 38 Unison in Diversity Statement of
Page 42 and 43: 40 Unison in Diversity Audit Commit
Page 44 and 45: 42 Unison in Diversity VI. INTERNAL
Page 46 and 47: 44 Unison in Diversity Financial Hi
Page 48 and 49: 46 Unison in Diversity Dividend Pay
Page 50 and 51: 48 Unison in Diversity Directors’
Page 52 and 53: 50 Unison in Diversity Directors’
Page 54 and 55: 52 Unison in Diversity Income State
Page 56 and 57: 54 Unison in Diversity Balance Shee
Page 58 and 59: 56 Unison in Diversity Consolidated
Page 60 and 61: 58 Unison in Diversity Cash Flow St
Page 62 and 63: 60 Unison in Diversity Summary of S
Page 76 and 77: 74 Unison in Diversity Notes to the
Page 102 and 103: 100 Unison in Diversity Notes to th
Page 114 and 115: 112 Unison in Diversity Independent
Page 116 and 117: 114 Unison in Diversity Additional
Page 118 and 119: 116 Unison in Diversity List of Pro
Page 120 and 121:
118 Unison in Diversity Analysis of
Page 122 and 123:
120 Unison in Diversity Corporate D
Page 124:
Fold here Fold here The Company Sec
show all

DELEUM BERHAD UNISON IN DIVERSITY - ChartNexus

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?