cont'd - KNM Steel Sdn Bhd

More documents

Recommendations

Info

<strong>KNM</strong> GROUP BERHAD I Annual Report 201261Notes to the Financial Statements (cont’d)2. Significant accounting policies (Cont’d)(c)Financial instruments (cont’d)(ii)Financial instrument categories and subsequent measurement (cont’d)(c)Available-for-sale financial assets (cont’d)Other financial assets categorised as available-for-sale are subsequently measured attheir fair values with the gain or loss recognised in other comprehensive income, exceptfor impairment losses, foreign exchange gains and losses arising from monetary items andgains and losses of hedged items attributable to hedge risks of fair value hedges which arerecognised in profit or loss. On derecognition, the cumulative gain or loss recognised in othercomprehensive income is reclassified from equity into profit or loss. Interest calculated fora debt instrument using the effective interest method is recognised in profit or loss.All financial assets, except for those measured at fair value through profit or loss, are subject toreview for impairment (See note 2(j)(i)).Financial liabilitiesAll financial liabilities are subsequently measured at amortised cost other than those categorisedas fair value through profit or loss.Fair value through profit or loss category comprises financial liabilities that are derivatives (except fora derivative that is a financial guarantee contract or a designated and effective hedging instrument)or financial liabilities that are specifically designated into this category upon initial recognition.Derivatives that are linked to and must be settled by delivery of unquoted equity instruments whosefair values cannot be reliably measured are measured at cost.Other financial liabilities categorised as fair value through profit or loss are subsequently measuredat their fair values with the gain or loss recognised in profit or loss.(iii)Financial guarantee contractsA financial guarantee contract is a contract that requires the issuer to make specified payments toreimburse the holder for a loss it incurs because a specified debtor fails to make payment whendue in accordance with the original or modified terms of a debt instrument.Financial guarantee contracts are classified as “deferred income” and are amortised to profit or lossusing a straight-line method over the contractual period or, when there is no specified contractualperiod, recognised in profit or loss upon discharge of the guarantee. When settlement of a financialguarantee contract becomes probable, an estimate of the obligation is made. If the carrying valueof the financial guarantee contract is lower than the obligation, the carrying value is adjusted tothe obligation amount and accounted for as a provision.(iv)Regular way purchase or sale of financial assetsA regular way purchase or sale is a purchase or sale of a financial asset under a contract whoseterms require delivery of the asset within the time frame established generally by regulation orconvention in the marketplace concerned.A regular way purchase or sale of financial assets is recognised and derecognised, as applicable,using trade date accounting. Trade date accounting refers to:(a)(b)the recognition of an asset to be received and the liability to pay for it on the trade date, andderecognition of an asset that is sold, recognition of any gain or loss on disposal and therecognition of a receivable from the buyer for payment on the trade date.
62<strong>KNM</strong> GROUP BERHAD I Annual Report 2012Notes to the Financial Statements (cont’d)2. Significant accounting policies (Cont’d)(c)Financial instruments (cont’d)(v)Hedge accountingCash flow hedgeA cash flow hedge is a hedge of the exposure to variability in cash flows that is attributableto a particular risk associated with a recognised asset or liability or a highly probable forecasttransaction and could affect the profit or loss. In a cash flow hedge, the portion of the gain orloss on the hedging instrument that is determined to be an effective hedge is recognised in othercomprehensive income and the ineffective portion is recognised in profit or loss.Subsequently, the cumulative gain or loss recognised in other comprehensive income is reclassifiedfrom equity into profit or loss in the same period or periods during which the hedged forecast cashflows affect profit or loss. If the hedge item is a non-financial asset or liability, the associated gain orloss recognised in other comprehensive income is removed from equity and included in the initialamount of the asset or liability. However, loss recognised in other comprehensive income that willnot be recovered in one or more future periods is reclassified from equity into profit or loss.Cash flow hedge accounting is discontinued prospectively when the hedging instrument expiresor is sold, terminated or exercised, the hedge is no longer highly effective, the forecast transactionis no longer expected to occur or the hedge designation is revoked. If the hedge is for a forecasttransaction, the cumulative gain or loss on the hedging instrument remains in other comprehensiveincome until the forecast transaction occurs. When the forecast transaction is no longer expectedto occur, any related cumulative gain or loss recognised in other comprehensive income on thehedging instrument is reclassified from equity into profit or loss.(vi)DerecognitionA financial asset or part of it is derecognised when, and only when the contractual rights to thecash flows from the financial asset expire or the financial asset is transferred to another partywithout retaining control or substantially all risks and rewards of the asset. On derecognition ofa financial asset, the difference between the carrying amount and the sum of the considerationreceived (including any new asset obtained less any new liability assumed) and any cumulativegain or loss that had been recognised in equity is recognised in the profit or loss.A financial liability or a part of it is derecognised when, and only when, the obligation specifiedin the contract is discharged or cancelled or expires. On derecognition of a financial liability, thedifference between the carrying amount of the financial liability extinguished or transferred toanother party and the consideration paid, including any non-cash assets transferred or liabilitiesassumed, is recognised in the profit or loss.(d)Property, plant and equipment(i)Recognition and measurementFreehold lands and capital work-in-progress are stated at cost/valuation less any accumulatedimpairment losses. All other items of property, plant and equipment are stated at cost/valuationless accumulated depreciation and any accumulated impairment losses.The Group revalues its freehold lands and buildings every 5 years and at shorter intervals wheneverthe fair value of the revalued assets is expected to differ materially from their carrying value.Additions subsequent to their revaluation are stated in the financial statements at cost until thenext revaluation exercise.
Page 1 and 2:
KNM GROUP BERHADWorld Class Process
Page 3 and 4:
2KNM GROUP BERHAD I Annual Report 2
Page 5 and 6:
Page 7 and 8:
Page 9 and 10:
Page 11 and 12: 10KNM GROUP BERHAD I Annual Report
Page 17: 16KNM GROUP BERHAD I Annual Report
Page 20 and 21: KNM GROUP BERHAD I Annual Report 20
Page 38 and 39: Financial Statements38 Directors’
Page 112 and 113:
KNM GROUP BERHAD I Annual Report 20
Page 114 and 115:
Page 116 and 117:
Page 118 and 119:
Page 120 and 121:
Page 122 and 123:
Page 124 and 125:
Page 126 and 127:
Page 128 and 129:
Page 130 and 131:
Page 132 and 133:
Page 135 and 136:
134KNM GROUP BERHAD I Annual Report
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Fold this flap for sealingThen fold
show all

cont'd - KNM Steel Sdn Bhd

Create successful ePaper yourself

Delete template?

Save as template?