TANJUNG OFFSHORE BERHAD

TANJUNG OFFSHORE BERHAD (662315-U)
ANNUAL REPORT 2009
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2009
3. SIGNIFICANT ACCOUNTING POLICIES (continued)
a) New/Revised FRSs and Interpretations Not Yet Effective (continued)
FRS 101: Presentation of Financial Statements
The revised FRS 101 separates owner and non-owner changes in equity. Therefore, the consolidated statement of
changes in equity will now include only details of transactions with owners. All non-owner changes in equity are presented
as a single line labelled as total comprehensive income.
The Standard also introduces the statement of comprehensive income: presenting all items of income and expense
recognised in the income statement, together with all other items of recognised income and expense, either in one single
statement, or in two linked statements.
In addition, a statement of fi nancial position is required at the beginning of the earliest comparative period following a
change in the accounting policy, the correction of an error or the reclassifi cation of items in the fi nancial statements. This
revised FRS does not have any impact on the fi nancial position and results of the Group and the Company.
FRS 123: Borrowing Costs
This Standard supersedes the old FRS 123 that removes the option of expensing borrowing costs and requires capitalisation
of such costs that are directly attributable to the acquisition, construction or production of a qualifying asset as part of
the cost of that asset. Other borrowing costs are recognised as an expense. The Group’s current accounting policy is
to expense the borrowing costs in the period which they are incurred. In accordance with the transitional provisions of
the Standard, the Group will apply the change in accounting policy prospectively for which the commencement date for
capitalisation of borrowing cost on qualifying assets is on or after the fi nancial period 01 January 2010.
b) Functional and Presentation Currency
The individual fi nancial statements of each entity in the Group are measured using the currency of the primary economic
environment in which the entity operates (“the functional currency”). The consolidated fi nancial statements are presented
in Ringgit Malaysia (RM), which is also the Company’s functional currency.
c) Basis of Consolidation
The consolidated fi nancial statements include the audited fi nancial statements of the Company and all of its subsidiary
companies made up to the end of the fi nancial year. The results of the subsidiary companies acquired are included in the
consolidated fi nancial statements from the date of acquisition. All signifi cant inter-company transactions and balances are
eliminated on consolidation.
Subsidiary companies are consolidated using the acquisition method of accounting from the date control is transferred to
the Group and are no longer consolidated from the date control ceases.
Minority interests are measured at their shares of the net assets of the subsidiary companies.
Goodwill on acquisition, being the difference between the cost of acquisition and the underlying net asset value of the
subsidiary companies at the date of acquisition.
Goodwill is stated at cost less impairment losses. The policy for the recognition and measurement of impairment losses
are in accordance with Note 3(i) to the fi nancial statements.
Negative goodwill represents the excess of the Group’s interest in the fair value of the identifi able assets and liabilities
of a subsidiary at the date of acquisition over the cost of acquisition. Negative goodwill is recognised immediately in the
income statement.
d) Subsidiary Companies
Subsidiary companies are those companies in which the Group has long term equity interest of more than 50% or has
power to exercise control over the fi nancial and operating policies as to obtain benefi t from its activities.
74