86 <strong>TDM</strong> <strong>Berhad</strong> (6265-P)Notes to the Financial Statements2. Significant Accounting Policies (cont’d.)2.3 Standards and Interpretations issued but not yet effective (cont’d.)Pronouncements effective for financial periods beginning on or after 1 July 2010 (cont’d.)FRS 1: First-time Adoption of Financial Reporting StandardsThis FRS supersedes FRS 1 (issued in 2005 and amended in May <strong>2009</strong>). The Standard sets out the procedures that an entity mustfollow when it adopts FRSs for the fi rst time as the basis for preparing its fi nancial statements.FRS 3: Business Combinations (revised) and FRS 127: Consolidated and Separate Financial Statements (amended)FRS 3 (revised) introduces a number of changes to the accounting for business combinations occurring on or after 1 July 2010. Theseinclude changes that affect the valuation of non-controlling interest, the accounting for transaction costs, the initial recognition andsubsequent measurement of a contingent consideration and business combinations achieved in stages. These changes will impactthe amount of goodwill recognised, the reported results in the period that an acquisition occurs and future reported results.FRS 127 (amended) requires that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as atransaction with owners in their capacity as owners and to be recorded in equity. Therefore, such transaction will no longer give riseto goodwill, nor will it give rise to a gain or loss. Furthermore, the amended Standard changes the accounting for losses incurred bythe subsidiary as well as loss of control of a subsidiary.The changes by FRS 3 (revised) and FRS127 (amended) will be applied prospectively and only affect future acquisition or loss ofcontrol of subsidiaries and transactions with non-controlling interests.2.4 Significant accounting estimates and judgements(a) Key sources of estimation uncertainty(i) Impairment of property, plant and equipmentDuring the current fi nancial year, the Group has carried out the impairment test based on a variety of estimation includingthe value-in-use of the CGU to which the property, plant and equipment are allocated. Estimating the value-in-use requiresthe Group to make an estimate of the expected future cash fl ows from the CGU and also to choose a suitable discountrate in order to calculate the present value of those cash fl ows. The carrying amounts of property, plant and equipmentof the Group and Company as at 31 December <strong>2009</strong> were RM101,567,000 (2008: RM93,846,000) and RM1,623,000(2008: RM3,416,000). Further details of the impairment losses recognised are disclosed in Note 11.(ii)Deferred tax assetsDeferred tax assets are recognised for all unused tax losses, unabsorbed capital allowances and reinvestment allowancesto the extent that it is probable that taxable profi t will be available against which the losses, capital allowances andreinvestment allowances can be utilised. Signifi cant management judgement is required to determine the amount ofdeferred tax assets that can be recognised, based upon the likely timing and level of future taxable profi ts together withfuture tax planning strategies. The total carrying value of unrecognised tax losses and capital allowances of the Groupwas RM25,260,000 (2008: RM25,260,000) and RM10,826,000 (2008: RM12,125,000) respectively.
<strong>TDM</strong> <strong>Berhad</strong> (6265-P) 87Notes to the Financial Statements3. RevenueRevenue of the Group and of the Company consists of the following:GroupCompany<strong>2009</strong> 2008 <strong>2009</strong> 2008RM’000 RM’000 RM’000 RM’000RestatedRestatedSale of goods 277,643 357,386 37,504 48,007Rendering of services 59,394 47,678 – –Dividend income from subsidiaries – – 38,137 40,314Management fees from subsidiaries – – 9,757 15,971337,037 405,064 85,398 104,292Revenue for the Group represents invoiced amount for sale of goods and services rendered after allowing for sales discounts and returnsand excludes intra-group transactions.4. Finance CostsGroupCompany<strong>2009</strong> 2008 <strong>2009</strong> 2008RM’000 RM’000 RM’000 RM’000Interest expense on:– bank overdrafts 80 138 80 138– term loans 67 71 – –– trust receipts and bankers’ acceptances 71 79 – –– hire purchase and fi nance lease liabilities 166 137 1 26384 425 81 164
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