ANNUAL REPORT 2012 - Wawasan TKH Holdings Berhad
ANNUAL REPORT 2012 - Wawasan TKH Holdings Berhad
ANNUAL REPORT 2012 - Wawasan TKH Holdings Berhad
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050<br />
WAWASAN <strong>TKH</strong> HOLDINGS BERHAD (540218-A)<br />
<strong>ANNUAL</strong> <strong>REPORT</strong> <strong>2012</strong><br />
NOTES TO THE FINANCIAL STATEMENTS<br />
31 DECEMBER <strong>2012</strong> (cont’d)<br />
4. SIGNIFICANT ACCOUNTING POLICIES (cont’d)<br />
4.10 Financial instruments (cont’d)<br />
(c) Equity (cont’d)<br />
The Group measures a liability to distribute non-cash assets as a dividend to the owners of the<br />
Company at the fair value of the assets to be distributed. The carrying amount of the dividend is<br />
remeasured at each reporting date and at the settlement date, with any changes recognised directly<br />
in equity as adjustments to the amount of the distribution. On settlement of the transaction, the<br />
Group recognises the difference, if any, between the carrying amount of the assets distributed and<br />
the carrying amount of the liability in profit or loss.<br />
When the Group repurchases its own shares, the shares repurchased would be accounted for using<br />
the treasury stock method.<br />
Where the treasury stock method is applied, the shares repurchased and held as treasury shares shall<br />
be measured and carried at the cost of repurchase on initial recognition and subsequently. It shall not<br />
be revalued for subsequent changes in the fair value or market price of the shares.<br />
The carrying amount of the treasury shares shall be offset against equity in the statement of financial<br />
position. To the extent that the carrying amount of the treasury shares exceeds the share premium<br />
account, it shall be considered as a reduction of any other reserves as may be permitted by the Main<br />
Market Listing Requirements.<br />
No gain or loss is recognised in profit or loss on the purchase, sale, issue or cancellation of the own<br />
equity instruments of the Company. If such shares are issued by resale, any difference between the<br />
sales consideration and the carrying amount is shown as a movement in equity.<br />
4.11 Impairment of financial assets<br />
The Group assesses whether there is any objective evidence that a financial asset is impaired at the end<br />
of each reporting period.<br />
(a) Loans and receivables<br />
The Group collectively considers factors such as the probability of bankruptcy or significant financial<br />
difficulties of the receivables, and default or significant delay in payments by the receivables to<br />
determine whether there is objective evidence that an impairment loss on loans and receivables has<br />
occurred. Other objective evidence of impairment include historical collection rates determined on<br />
an individual basis and observable changes in national or local economic conditions that are directly<br />
correlated with the historical default rates of receivables.<br />
If any such objective evidence exists, the amount of impairment loss is measured as the difference<br />
between the financial asset’s carrying amount and the present value of estimated future cash flows<br />
discounted at the financial asset’s original effective interest rate. The impairment loss is recognised<br />
in profit or loss.<br />
The carrying amounts of loans and receivables are reduced through the use of an allowance account.<br />
If in a subsequent period, the amount of the impairment loss decreases and it objectively relates to<br />
an event occurring after the impairment was recognised, the previously recognised impairment loss<br />
is reversed to the extent that the carrying amount of the asset does not exceed its amortised cost at<br />
the reversal date. The amount of impairment reversed is recognised in profit or loss.