WCT-Page 30 to ProxyForm (2.4MB).pdf - Announcements - Bursa ...

82
WCT Berhad (66538-K)
annual report 2011
NOTES TO THE FINANCIAL STATEMENTS
31 December 2011
cont’d
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES cont’d
2.2 Changes in accounting policies cont’d
• Amendments to FRS 138: Intangible Assets
• Amendments to FRS 7: Improving Disclosures about Financial Instruments
• Amendments to IC Interpretation 9: Reassessment of Embedded Derivatives
• IC Interpretation 4: Determining whether an Arrangement contains a Lease
• IC Interpretation 12: Service Concession Arrangements
• IC Interpretation 16: Hedges of a Net Investment in a Foreign Operation
• IC Interpretation 17: Distributions of Non-cash Assets to Owners
• IC Interpretation 18: Transfers of Assets from Customers
• Improvements to FRSs issued in 2010
• TR i-4: Syariah Compliant Sale Contracts
Adoption of the above standards and interpretations did not have any effect on the financial performance or
position of the Group and the Company except for those discussed below:
Revised FRS 3: Business Combination
The revised standards are effective for annual periods beginning on or after 1 July 2010. The revised FRS 3
introduces a number of changes in accounting for business combinations occurring after 1 July 2010. These
changes impact the amount of goodwill recognised, the reported results in the period that an acquisition occurs,
and future reported results.
The revised FRS 3 continues to apply the acquisition method to business combinations but with some significant
changes. All payments to purchase a business are recorded at fair value at the acquisition date, with contingent
payments classified as debt subsequently remeasured through the statements of comprehensive income. There
is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either
at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisitionrelated
costs are expensed.
The revised FRS 3 requires goodwill to be determined only at the acquisition date of controlling interest rather
than at the previous stages. The determination of goodwill includes the previously held equity interest to be
adjusted to fair value, with any gain or loss recorded in the income statements.
The adoption of the revised FRS 3 does not have any impact on the Group’s consolidated financial statements.
FRS 127 : Consolidated and Separate Financial Statements
This Standard supersedes the existing FRS 127 and replaces the current term 'minority interest' with a new
term 'non-controlling interest' which is defined as the equity in a subsidiary that is not indirectly, to a parent.
Accordingly, total comprehensive income shall be attributed to the owners of the parent attributable, directly and
or to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
Changes in the Group's ownership interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions. If the Group losses control of a subsidiary, any gains or losses are recognised in profit
or loss and any investment retained in the former subsidiary shall be measured at its fair value at the date when
control is lost.