LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

More documents

Recommendations

Info

TEO SENG CAPITAL BERHAD(Incorporated In Malaysia)Company No : 732762 - TNOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL PERIOD FROM 1 APRIL 2012 TO 31 DECEMBER 20124. ACCOUNTING POLICIES AND STANDARDS (CONT’D)4.6 Critical Accounting Estimates and JudgementsEstimates and judgements are continually evaluated by the directors and managementand are based on historical experience and other factors, including expectations of futureevents that are believed to be reasonable under the circumstances. The estimates andjudgements that affect the application of the Group’s accounting policies and disclosures,and have a significant risk of causing a material adjustment to the carrying amounts ofassets, liabilities, income and expenses are discussed below :(a)Depreciation of property, plant and equipmentThe estimates for the residual values, useful lives and related depreciation chargesfor the property, plant and equipment are based on commercial factors which couldchange significantly as a result of technical innovations and competitors’ actions inresponse to the market conditions.The Group anticipates that the residual values of its property, plant and equipmentwill be insignificant. As a result, residual values are not being taken intoconsideration for the computation of the depreciable amount.Changes in the expected level of usage and technological development could impactthe economic useful lives and the residual values of these assets, therefore futuredepreciation charges could be revised.(b)Income taxThere are certain transactions and computations for which the ultimate taxdetermination may be different from the initial estimate. The Group recognises taxliabilities based on its understanding of the prevailing tax laws and estimates ofwhether such taxes will be due in the ordinary course of business. Where the finaltax outcome of these matters is different from the amounts that were initiallyrecognised, such difference will impact the income tax and deferred tax provisions, inthe year in which such determination is made.(c)Impairment of non-financial assetsWhen the recoverable amount of an asset is determined based on the estimate ofthe value-in-use of the cash-generating unit to which the asset is allocated, themanagement is required to make an estimate of the expected future cash flows fromthe cash-generating unit and also to apply a suitable discount rate in order todetermine the present value of those cash flows.Page 47
TEO SENG CAPITAL BERHAD(Incorporated In Malaysia)Company No : 732762 - TNOTES TO THE FINANCIAL STATEMENTSFOR THE FINANCIAL PERIOD FROM 1 APRIL 2012 TO 31 DECEMBER 20124. ACCOUNTING POLICIES AND STANDARDS (CONT’D)4.6 Critical Accounting Estimates and Judgements (Cont’d)(d)Write-down of inventories – Non-livestocksReviews are made periodically by management on damaged, obsolete and slowmoving inventories. These reviews require judgement and estimates. Possiblechanges in these estimates could result in revisions to the valuation of inventories.(e)Classification between investment property and owner-occupied propertiesThe Group determines whether a property qualifies as an investment property, andhas developed a criteria in making that judgement. Investment property is a propertyheld to earn rentals or for <strong>capital</strong> appreciation or both. Therefore, the Groupconsiders whether a property generates cash flows largely independent of the otherassets held by the Group.Some properties comprise a portion that is held to earn rentals or for <strong>capital</strong>appreciation and another portion that is held for use in the production or supply ofgoods or services or for administrative purposes. If these portions could be soldseparately (or leased out separately under a finance lease), the Group accounts forthe portions separately. If the portions could not be sold separately, the property isan investment property only if an insignificant portion is held for use in the productionor supply of goods or services or for administrative purposes.Judgement is made on an individual property basis to determine whether ancillaryservices are so significant that a property does not qualify as investment property.(f)Impairment of trade and other receivablesAn impairment loss is recognised when there is objective evidence that a financialasset is impaired. Management specifically reviews its loans and receivablesfinancial assets and analyses historical bad debts, customer concentrations,customer creditworthiness, current economic trends and changes in the customerpayment terms when making a judgement to evaluate the adequacy of the allowancefor impairment losses. Where there is objective evidence of impairment, the amountand timing of future cash flows are estimated based on historical loss experience forassets with similar credit risk characteristics. If the expectation is different from theestimation, such difference will impact the carrying amount of receivables.Page 48
Page 2 and 3: TEO SENG CAPITAL BERHAD(Incorporate
Page 10 and 11: INDEPENDENT AUDITORS’ REPORT TO T
Page 12 and 13: INDEPENDENT AUDITORS’ REPORT TO T
Page 20: TEO SENG CAPITAL BERHAD(Incorporate
Page 47: TEO SENG CAPITAL BERHAD(Incorporate
Page 99 and 100:
TEO SENG CAPITAL BERHAD(Incorporate
Page 101 and 102:
TEO SENG CAPITAL BERHAD(Incorporate
show all

LEEKEE INDUSTRIES (M) SDN - teo seng capital berhad

Create successful ePaper yourself

Delete template?

Save as template?