2011 Annual Report - the solid group inc website

More documents

Recommendations

Info

- 26 - 2.22 Earnings per Share Basic earnings per share (EPS) is computed by dividing profit for the year by the weighted average number of issued and outstanding common shares during the year after giving retroactive effect to stock dividends declared, stock split and reverse stock split during the current year, if any. Diluted EPS is computed by adjusting the weighted average number of ordinary shares outstanding to assume conversion of potential dilutive shares. As of December 31, 2011 and 2010, the Parent Company does not have potential dilutive shares. 2.23 Events After the End of Reporting Period Any post-year-end event that provides additional information about the Group’s consolidated financial position at the end of the reporting period (adjusting event) is reflected in the consolidated financial statements. Post-year-end events that are not adjusting events, if any, are disclosed when material to the consolidated financial statements. 3. SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES The Group’s consolidated financial statements prepared in accordance with PFRS require management to make judgments and estimates that affect amounts reported in the consolidated financial statements and related notes. Judgments and estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Actual results may ultimately differ from these estimates. 3.1 Critical Management Judgments in Applying Accounting Policies In the process of applying the Group’s accounting policies, management has made the following judgments, apart from those involving estimation, which have the most significant effect on the amounts recognized in the consolidated financial statements: (a) Determining Net Realizable Value of Real Estate Inventories The Group adjusts the cost of its real estate inventories to net realizable value based on its assessment of the recoverability of the inventories. Net realizable value for completed real estate inventories is assessed with reference to market conditions and prices existing at the reporting date and is determined by the Group in the light of recent market conditions and prices existing at the reporting date and is determined by the Group in the light of recent market transactions. Net realizable value in respect of real estate inventories under construction is assessed with reference to market prices at the reporting date for similar completed property, less estimated costs to complete construction and less estimated costs to sell. The amount and timing of recorded expenses for any period would differ if different judgments were made or different estimates were utilized. The carrying amounts of the real estate inventories is disclosed in Note 12.
- 27 - (b) Impairment of AFS Financial Assets The determination when an investment is other-than-temporarily impaired requires significant judgment. In making this judgment, the Group evaluates, among other factors, the duration and extent to which the fair value of an investment is less than its cost, and the financial health of and near-term business outlook for the investee, including factors such as industry and sector performance, changes in technology and operational and financing cash flows. Based on the recent evaluation of information and circumstances affecting the Group’s AFS financial assets, management concluded that certain assets are impaired as of December 31, 2011 and 2010 . Future changes in those information and circumstance might significantly affect the carrying amount of the assets. Impairment losses recognized on AFS financial assets are disclosed in Note 9. (c) Costing of Merchandise Inventories and Supplies The Group’s inventory costing policies and procedures were based on a careful evaluation of present circumstances and facts affecting production operations. A review of the benchmarks set by management necessary for the determination of inventory costs and allocation is performed regularly. Actual data are compared to the related benchmarks and critical judgment is exercised to assess the reasonableness of the costing policies and procedures which are currently in place and to make the necessary revisions in light of current conditions. (d) Distinction Between Investment Property and Owner-managed Properties The Group determines whether a property qualifies as investment property. In making its judgment, the Group considers whether the property generates cash flows largely independent of the other assets held by an entity. Owner-occupied properties generate cash flows that are attributable not only to the properties but also to other assets used in the production or supply process. Some properties comprise a portion that is held to earn rental or for capital appreciation and another portion that is held for use in the production and supply of goods and services or for administrative purposes. If these portions can be sold separately (or leased out separately under finance lease), the Group accounts for the portions separately. If the portion cannot be sold separately, the property is accounted for as investment property only if an insignificant portion is held for use in the production or supply of goods or services or for administrative purposes. Judgment is applied in determining whether ancillary services are so significant that a property does not qualify as investment property. The Group considers each property separately in making its judgment. (e) Operating and Finance Leases The Group has entered into various lease agreements as either a lessor or lessee. Critical judgment was exercised by management to distinguish each lease agreement as either an operating or finance lease by looking at the transfer or retention of significant risk and rewards of ownership of the properties covered by the agreements. Failure to make the right judgment will result in either overstatement or understatement of assets and liabilities. Based on management judgment, such leases were determined to be operating leases.
Page 2 and 3: Table of Contents Message to Stockh
Page 4 and 5: Operations Review and Prospects 201
Page 6 and 7: Real Estate IMPROVING VALUATIONS Ou
Page 8 and 9: Board of Directors Susan L. Tan Cha
Page 10 and 11: !" # $"##$"%##&$!'()*(()*(*#)**+
Page 12 and 13: 10 SOLID GROUP INC. ANNUAL REPORT 2
Page 20 and 21: - 2 - Notes: (a) (b) (c) (d) (e) (f
Page 22 and 23: - 4 - (b) Presentation of Consolida
Page 24 and 25: - 6 - (iv) 2010 Annual Improvements
Page 26 and 27: - 8 - (c) Effective Subsequent to 2
Page 28 and 29: - 10 - (vii) Consolidation Standard
Page 30 and 31: - 12 - The acquisition method is ap
Page 32 and 33: - 14 - The Group’s financial asse
Page 34 and 35: - 16 - Land and land development co
Page 36 and 37: - 18 - Trade and Other Payables, Ad
Page 38 and 39: - 20 - The recognition criteria for
Page 40 and 41: - 22 - (b) Group as Lessor Leases w
Page 42 and 43: - 24 - Actuarial gains and losses a
Page 46 and 47: - 28 - (f) Provisions and Contingen
Page 48 and 49: - 30 - (h) Realizable Amount of Def
Page 50 and 51: - 32 - 4.3 Intersegment Transaction
Page 52 and 53: - 34 - The total segment balances p
Page 54 and 55: - 36 - The net cash flows attributa
Page 56 and 57: - 38 - A reconciliation of the allo
Page 58 and 59: - 40 - A reconciliation of the allo
Page 60 and 61: - 42 - 12. REAL ESTATE INVENTORIES
Page 62 and 63: - 44 - 13. PROPERTY, PLANT AND EQUI
Page 64 and 65: - 46 - No additional impairment los
Page 66 and 67: 48 Notes 2011 2010 Non-current: Ref
Page 68 and 69: 50 The changes in the Reserve for W
Page 70 and 71: 52 19.2 Cost of Services The follow
Page 72 and 73: 54 Items classified under the misce
Page 74 and 75: 56 23.2 Post-employment Benefit The
Page 76 and 77: 58 The amount of post-employment be
Page 78 and 79: 60 The reconciliation of tax on pre
Page 80 and 81: 62 The components of net deferred t
Page 82 and 83: 64 25.2 Revaluation Reserves The co
Page 84 and 85: 66 In 2011 and 2010, Mytel sold mob
Page 86 and 87: 68 28.7 Transactions with Solid Com
Page 88 and 89: 70 29.2 Distributorship Agreement w
Page 90 and 91: 72 30.7 Others There are other comm
Page 92 and 93: 74 (b) Trade and Other Receivables
Page 94 and 95:
76 32.2 Fair Value Hierarchy The ta
show all

2011 Annual Report - the solid group inc website

Create successful ePaper yourself

Delete template?

Save as template?