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)
10.8
10.22
10.28
NOTES TO THE FINANCIAL STATEMENTS
FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2009
Interest-Bearing Liabilities
Interest-bearing liabilities are recognised initially at cost, and subsequently measured at amortised
cost with any difference between proceeds and the settlement and redemption value recognised in
income statements over the period of borrowing on an effective interest basis.
Hire Purchase and Finance Lease Payables
Hire purchase and leases of property, plant and equipment, which are classified as finance lease,
where substantially all the risks and benefits incidental to the ownership of the assets, but not the
legal ownership, are transferred to the Group and the Company.
Assets under hire purchase and finance lease are depreciated on a straight-line basis over the
shorter of the hire and lease terms or their useful lives. Hire purchase and finance lease interest is
recognised as an expense in income statements over the lease period so as to give a constant
periodic rate of interest on the outstanding liability at the end of each accounting period.
All other leases are classified as operating lease and the lease rentals are recognised as an expense
in income statements on a straight-line basis over the lease periods.
Provisions
20.15 A provision is recognised when the Group and the Company have a present obligation as a result
of a past event and it is probable that an outflow of resources embodying economic benefits will
be required to settle the obligation. Provisions are recognised based on a reliable estimate of the
amount of the obligation.
31.40
31.30
Equity
Equity issued by the Company is recognised at the proceeds received, net of direct issue costs.
Government Grants
Government grants are recognised when there is reasonable assurance that the Group and the
Company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised as income on a systematic basis over the periods necessary to
match them with the related costs which they are intended to compensate.
Government grants related to assets are presented in the balance sheets by setting up the grant as
deferred income while government grant related to income is presented as a credit in income
statements separately.
Alternative presentation format for government grants:
Government grants related to assets are presented in the balance sheets by deducting the grant in
arriving at the carrying amount of the asset, while government grants related to income are
deducted against the related expenses.
8.36(a) Revenue
Revenue from sales of goods is recognised when the significant risks and rewards of ownership
have been transferred to the buyer. Revenue is measured at the fair value of the consideration
received or receivable, net of discounts and taxes applicable to the revenue.
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