Change - S P Setia Berhad

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S P Setia Berhad Group
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2008
1. SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(h)
Interests in joint ventures
A joint venture is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to
joint control.
A jointly controlled entity is a joint venture that involves the establishment of a separate entity in which each venturer has
an interest. A jointly controlled operation is a joint venture that involves the use of the assets and other resources of the
venture rather than the establishment of a corporation, partnership or other entity, or a financial structure that is separate
from the venturers themselves.
Investments in jointly controlled entities and jointly controlled operations are accounted for in the consolidated financial
statements using the proportionate consolidation method of accounting. The Group combines its share of each of the assets,
liabilities, income and expenses of the jointly controlled entities and jointly controlled operation with the similar items, line
by line, in its consolidated financial statements. The audited financial statements or the unaudited management accounts
of the joint ventures are made up to the end of the financial year and prepared using accounting policies that conform to
those used by the Group for like transactions in similar circumstances.
In the Company’s separate financial statements, investments in jointly controlled entities and jointly controlled operations are
stated at cost less impairment losses. Impairment losses are charged to the income statement.
On disposal, the difference between the net disposal proceeds and the carrying amount of the jointly controlled entity
disposed of is taken to the income statement.
(i)
Other investments
Other investments are stated at cost. An allowance for diminution in value is made if the directors are of the opinion that
there is a decline in the value of such investments which is other than temporary. The diminution in value is charged to the
income statement.
On disposal, the difference between the net disposal proceeds and the carrying amount of the investment disposed of is
taken to the income statement.
(j)
Property, plant and equipment
(i) Measurement basis
Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses, if any.
The cost of property, plant and equipment includes expenditure that is directly attributable to the acquisition of
an asset.
Subsequent costs are included in the asset’s carrying amount when it is probable that future economic benefits
associated with the asset will flow to the Group and the Company and the cost of the asset can be measured reliably.
The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income
statement during the financial year in which they are incurred.
Property, plant and equipment are derecognised upon disposal or when no future economic benefits are expected
from their use or disposal. On disposal, the difference between the net disposal proceeds and the carrying amount is
recognised in the income statement.