2009 - TDM Berhad

TDM Berhad (6265-P) 81Notes to the Financial Statements2. Significant Accounting Policies (cont’d.)2.2 Summary of significant accounting policies (cont’d.)(p) Leases(ii) Finance leases – the group as lesseeAssets acquired by way of hire purchase or fi nance leases are stated at an amount equal to the lower of their fair valuesand the present value of the minimum lease payments at the inception of the leases, less accumulated depreciationand impairment losses. The corresponding liability is included in the balance sheet as borrowings. In calculating thepresent value of the minimum lease payments, the discount factor used is the interest rate implicit in the lease, whenit is practicable to determine; otherwise, the Company’s incremental borrowing rate is used. Any initial direct costs arealso added to the carrying amount of such assets.Lease payments are apportioned between the fi nance costs and the reduction of the outstanding liability. Finance costs,which represent the difference between the total leasing commitments and the fair value of the assets acquired, arerecognised in the income statements over the term of the relevant lease so as to produce a constant periodic rate ofcharge on the remaining balance of the obligations for each accounting period.The depreciation policy for leased assets is in accordance with that for depreciable property, plant and equipment asdescribed in Note 2.2(c).2.3 Standards and Interpretations issued but not yet effectiveAt the date of authorisation of these fi nancial statements, the following new FRSs and Interpretations and amendments to certainStandards and Interpretations were issued but not yet effective and have not been applied by the Group and the Company:Effective for financial periods beginning on or after 1 July 2009FRS 8: Operating SegmentsEffective for financial periods beginning on or after 1 January 2010FRS 4: Insurance ContractsFRS 7: Financial Instruments: DisclosuresFRS 101: Presentation of Financial Statements (revised)FRS 123: Borrowing CostsFRS 139: Financial Instruments: Recognition and MeasurementAmendments to FRS 1: First-time Adoption of Financial Reporting Standards and FRS 127: Consolidated and Separate FinancialStatements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or AssociateAmendments to FRS 2: Share-based Payment – Vesting Conditions and CancellationsAmendments to FRS 132: Financial Instruments: PresentationAmendments to FRS 139: Financial Instruments: Recognition and Measurement, FRS 7: Financial Instruments: Disclosures andIC Interpretation 9: Reassessment of Embedded DerivativesAmendments to FRSs ‘Improvements to FRSs (2009)IC Interpretation 9: Reassessment of Embedded DerivativesIC Interpretation 10: Interim Financial Reporting and ImpairmentIC Interpretation 11: FRS 2 – Group and Treasury Share TransactionsIC Interpretation 13: Customer Loyalty ProgrammesIC Interpretation 14: FRS 119 – The Limit on a Defi ned Benefi t Asset, Minimum Funding Requirements and their InteractionTR i – 3: Presentation of Financial Statements of Islamic Financial Institutions