PERS Model financial statements - AXP Solutions

PERS Ref.
1.46(a) MODEL GROUP SDN. BHD. (Company No. 12345678-A)
(Incorporated in Malaysia)
AND ITS SUBSIDIARIES
1.8(e)
1.46(b),(c)
32.50(a)
4.30(a)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009
Property Development Activities
Land held for property development is carried at cost less any accumulated impairment losses
and is classified as non-current asset where no development activities are carried out or where
development activities are not expected to be completed within the normal operating cycle.
Property development costs comprise all costs that are directly attributable to development
activities including costs associated with the acquisition of land, costs related directly to a specific
property development activity and costs attributable to the development activities in general and
can be allocated to the project.
When the development and construction activities have commenced and the financial outcome of
the development activities can be reliably estimated, property development revenue will be
recognised for the development unit sold and determined by reference to the stage of completion
of the development activity at the balance sheet date. Stage of completion is determined based on
the proportion that property development costs incurred for work performed to date bear to the
estimated total property development costs.
When the outcome of a property development activity cannot be estimated reliably, property
development revenue is recognised only to the extent of property development costs incurred that
it is probable will be recoverable and property development costs are recognised as an expense in
the financial year in which they are incurred.
An expected loss on the property development activity is recognised as an expense immediately
(including costs to be incurred over the defects liability period).
Inventories of unsold completed development units are stated at the lower of cost and net
realisable value. Net realisable value represents the estimated selling price less all estimated costs
of completion and costs to be incurred in marketing, selling and distribution.
Goodwill
Goodwill arising on the acquisition of a subsidiary, being the excess of the cost of the business
combination over the Group’s interest in the net fair value of the identifiable assets and liabilities,
is initially measured at cost and recognised as an asset. Goodwill is subsequently measured at
cost less accumulated amortisation and accumulated impairment losses, if any.
Goodwill is amortised using the straight line method over its estimated useful life of 15 years.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination
of the income statements on disposal.
Goodwill arising on the acquisition of an associate or an equity-accounted jointly controlled entity
is included within the carrying amount of the investment and is assessed for impairment as part of
the investment.
Other Intangible Assets
Expenditure incurred on research activities is recognised in income statements as and when it is
incurred.
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