Full Version Guinness Anchor Berhad Annual Report 2009 - Gab

More documents

Recommendations

Info

106 GUINNESS ANCHOR BERHAD (5350-X) NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June <strong>2009</strong> 2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies are translated at exchange rates at the dates of the transactions except for those that are measured at fair value, which are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statements. (ii) Operations denominated in functional currencies other than Ringgit Malaysia The assets and liabilities of operations in functional currencies other than RM, are translated to RM at exchange rates at the balance sheet date. Exchange differences arising on the retranslation at closing rates of the opening balance sheet of overseas subsidiaries are taken to reserves. The income and expenses of operations in functional currencies other than RM, are translated to RM at exchange rates at the dates of the transactions. Foreign currency differences are recognised in capital reserve. On disposal, accumulated translation differences in capital reseve are recognised in the consolidated income statement as part of the gain or loss on sale. (c) Derivative financial instruments The Group holds derivative financial instruments to hedge its foreign currency risk exposure. Forward foreign exchange contracts used are accounted for on an equivalent basis as the underlying assets, liabilities or net positions. Any profit or loss arising is recognised on the same basis as that arising from the related assets, liabilities or net positions. (d) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are stated at cost/valuation less any accumulated depreciation and any impairment losses. The Group has availed itself to the transitional provision when the MASB first adopted IAS 16, Property, Plant and Equipment in 1998. Certain freehold land and buildings were revalued in 1984 and no later valuation has been recorded for these property, plant and equipment. Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. The cost of selfconstructed assets also includes the cost of materials and direct labour. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net within “other income” or “other expenses” respectively in the income statements.
GUINNESS ANCHOR BERHAD (5350-X) 107 NOTES TO THE FINANCIAL STATEMENTS for the year ended 30 June <strong>2009</strong> 2. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (d) Property, plant and equipment (Cont’d) (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of those parts that are replaced is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the income statements as incurred. (iii) Depreciation Depreciation is recognised in the income statements on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will obtain ownership by the end of the lease term. Freehold land is not depreciated. Property, plant and equipment under construction are not depreciated until the assets are ready for their intended use. The estimated useful lives for the current and comparative periods are as follows: • leasehold buildings 50 years • plant and machinery 13 – 20 years • movable plant 4 – 10 years Depreciation methods, useful lives and residual values are reassessed at the balance sheet date. (e) Leased assets Leasehold land that normally has an indefinite economic life and title is not expected to pass to the lessee by the end of the lease term is treated as an operating lease. The payment made on entering into or acquiring a leasehold land is accounted for as prepaid lease payments. The prepaid lease payments are amortised evenly over the respective lease term of the land which ranges from 61 to 95 years. The amortisation of prepaid lease payments is recognised as an expense in the income statements. Revalued leasehold land The Group had previously revalued its leasehold land in 1984 and has retained the unamortised revalued amount as the surrogate carrying amount of prepaid lease payments in accordance with the transitional provisions in FRS 117.67A. (f) Intangible assets Costs that are directly associated with identifiable computer software and that will probably generate economic benefits exceeding costs beyond one year or cost savings to the Group, and are not integral to other equipment are recognised as intangible assets. These costs include the software development employee costs and an appropriate portion of relevant overheads. The computer software development costs are recognised as assets and are amortised upon completion of the computer software on a straight line basis over its estimated useful life of 4 years. Costs associated with maintaining computer software programmes are recognised as an expense in the income statements when incurred.
Page 1 and 2:
leading... Annual Report 2009
Page 3 and 4:
...and moving from great good to Ou
Page 6 and 7:
OUR BRAND PORTFOLIO 4 GUINNESS ANCH
Page 8 and 9:
GUINNESS LEAGUE OF EXCELLENCE GAB w
Page 10 and 11:
88 GUINNESS ANCHOR BERHAD (5350-X)
Page 12 and 13:
Page 14 and 15:
Page 16 and 17:
Page 18 and 19:
sharing 16 GUINNESS ANCHOR BERHAD (
Page 20 and 21:
18 18 GUINNESS ANCHOR BERHAD (5350-
Page 22 and 23:
Page 24 and 25:
22 22 GUINNESS ANCHOR BERHAD (5350-
Page 26 and 27:
Page 28 and 29:
Page 30 and 31:
Page 32 and 33:
Page 34 and 35:
Page 36 and 37:
Page 38 and 39:
Page 40 and 41:
Page 42 and 43:
Page 44 and 45:
Page 46 and 47:
Page 48 and 49:
Page 50 and 51:
Page 52 and 53:
Page 54 and 55:
Page 56 and 57:
Page 58 and 59: 56 GUINNESS ANCHOR BERHAD (5350-X)
Page 96 and 97: Directors’ Report for the year en
Page 132 and 133: Statutory Declaration pursuant to S
Page 144 and 145: GUINNESS ANCHOR BERHAD (5350-X) 141
Page 146 and 147: NOTES:- 1. For purposes of determin
Page 148: Guinness Anchor Berhad (5350-X) Sun
show all

Full Version Guinness Anchor Berhad Annual Report 2009 - Gab

Create successful ePaper yourself

Delete template?

Save as template?