tomypak holdings berhad annual report 2012 - Announcements ...

Notes to the Financial Statements (Cont’d)
2. Significant accounting policies (Cont’d)
(e) Leased assets (Cont’d)
(ii) Operating lease
Leases, where the Group or the Company does not assume substantially all the risks and rewards
of ownership are classified as operating leases and the leased assets are not recognised in the
statement of financial position.
Payments made under operating leases are recognised in profit or loss on a straight-line basis
over the term of the lease. Lease incentives received are recognised in profit or loss as an integral
part of the total lease expense, over the term of the lease. Contingent rentals are charged to
profit or loss in the reporting period in which they are incurred.
(f) Intangible assets
(i) Computer software
Computer software acquired by the Company are stated at cost less any accumulated amortisation
and any accumulated impairment losses.
(ii) Amortisation
(g) Inventories
Computer software are amortised from the date that they are available for use. Amortisation of
intangible assets is charged to the income statements on a straight-line basis over the estimated
useful lives of intangible assets. The estimated useful lives of computer software is 6.7 years.
Inventories are measured at the lower of cost and net realisable value.
The cost of inventories is measured based on the first-in first-out principle and includes expenditure
incurred in acquiring the inventories and bringing them to their existing location and condition. In
the case of work-in-progress and finished goods, cost includes an appropriate share of production
overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and the estimated costs necessary to make the sale.
(h) Cash and cash equivalents
Cash and cash equivalents consist of cash on hand, balances and deposits with banks and highly liquid
investments which have an insignificant risk of changes in fair value. For the purpose of statement of
the cash flows, cash and cash equivalents are presented net of bank overdrafts and pledged deposits.
TOMYPAK HOLDINGS BERHAD
ANNUAL REPORT 2012 pg 65
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