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

88
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
2.3 Standards issued but not yet effective cont’d
Malaysian Financial Reporting Standards (MFRS Framework)
On 19 November 2011, the Malaysian Accounting Standards Board (MASB) issued a new MASB approved
accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework). The MFRS Framework
comprises Standards as issued by the International Accounting Standards Board (IASB) that are effective on
1 January 2012. It also comprises new/revised Standards that will be effective after 1 January 2012. All other
Standards under the FRS framework where no new/revised Standards that will be effective after 1 January 2012
will transition to MFRS framework with no further amendments.
The MFRS Framework is to be applied to all entities other than private entities with the exception of entities
that are within the scope of MFRS 141 Agriculture and IC Interpretation 15 Agreements for Construction of Real
Estates. IC Interpretation 15 which was suppose to be effective for periods beginning on or after 1 January 2012
was withdrawn.
Transitioning Entities will be allowed to defer adoption of the new MFRS Framework for an additional one year.
Consequently, adoption of the MFRS Framework by Transitioning Entities will be mandatory for annual periods
beginning on or after 1 January 2013.
The Group falls within the scope definition of Transitioning Entities and have opted to defer adoption of the
new MFRS Framework. Accordingly, the Group will be required to prepare financial statements using the MFRS
Framework in its first MFRS financial statements for the year ending 31 December 2013. In presenting its first
MFRS financial statements, the Group will be required to restate the comparative financial statements to amounts
reflecting the application of MFRS Framework. The majority of the adjustments required on transition will be
made, retrospectively, against opening retained profits.
The Group considers that it is achieving its scheduled milestones and expects to be in a position to fully comply
with the requirements of the MFRS Framework for the financial year ending 31 December 2013.
2.4 Basis of consolidation
The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as
at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated
financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are
applied to like transactions and events in similar circumstances.
All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group
transactions are eliminated in full.
Acquisitions of subsidiaries are accounted for by applying the purchase method. Identifiable assets acquired and
liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values
at the acquisition date. Adjustments to those fair values relating to previously held interests are treated as a
revaluation and recognised in other comprehensive income. The cost of a business combination is measured as
the aggregate of the fair values, at the date of exchange, of the assets given, liabilities incurred or assumed, and
equity instruments issued, plus any costs directly attributable to the business combination.