Amtel Holdings Berhad - Company Announcements - Bursa Malaysia

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1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) NOTES TO THE FINANCIAL STATEMENTS (Cont’d) (g) Impairment of Assets (Cont’d) An impairment loss is recognised as an expense in the income statement. Any subsequent increase in recoverable amount due to a reversal of impairment loss is restricted to the carrying amount that would have been determined (net of accumulated depreciation, where applicable) had no impairment loss been recognised in prior years. The reversal of impairment loss is recognised as revenue in the income statement. (h) Inventories Inventories are stated at the lower of cost and net realisable value and are determined on the first-in-firstout or weighted average cost basis, as applicable. Cost includes the actual cost of materials and incidentals in bringing the inventories into store and for manufactured inventories, it also includes labour and appropriate production overheads. In arriving at the net realisable value, due allowance is made for obsolete and slow moving inventories. (i) Hire Purchase Hire purchase instalment plans are agreements whereby the lender conveys to the hirer, in return for a series of instalment payments, the rights to use the assets involved with an option for hirer to purchase the assets upon full settlement of the instalment payments. Cost of property, plant and equipment acquired under the hire purchase instalment plans are capitalised as property, plant and equipment and depreciated in accordance with the Group’s policy on depreciation of property, plant and equipment. The related finance charges are allocated to the income statement over the period of the instalment plans based on the sum-of-digit method and the total outstanding instalment payments after deducting the unexpired finance charges are included in creditors. (j) Taxation Taxation in the income statement represents the aggregate amount of current and deferred tax. Current tax is the expected amount payable in respect of taxable income for the year and any adjustments recognised in the year for current tax of prior years. Deferred tax is recognised, using the liability method, on all temporary differences except where the temporary difference arises from goodwill or negative goodwill or from the initial recognition of an asset or liability in a transaction, which is not a business combination and at the time of the transaction, affects neither accounting profit nor taxable profit. Deferred tax is measured at the tax rates that are expected to apply in the period in which the assets are realised or the liabilities are settled. Deferred tax is recognised in equity when it relates to items recognised directly in equity. When deferred tax arises from business combination that is an acquisition, the deferred tax is included in the resulting goodwill or negative goodwill. Deferred tax assets are recognised only to the extent that there are sufficient taxable temporary differences relating to the same taxation authority to offset or when it is probable that future taxable income will be available against which the assets can be utilised. (k) Provision for Liabilities Provision for liabilities are recognised when the Group has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount can be made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where the effect of the time value of money is material, the amount of a provision is the present value of the expenditure expected to be required to settle the obligation. Amtel Holdings Berhad 2003 annual report 39
40 NOTES TO THE FINANCIAL STATEMENTS (Cont’d) 1. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) (l) Revenue Recognition Revenue from sales of goods and services rendered are recognised upon delivery of products and when the risks and rewards of ownership has been passed or upon completion of the performance of services rendered to customers respectively. Sales represent gross invoiced value of goods sold net of sales tax, trade discounts and allowances. Revenue from contracts is recognised on the percentage of completion method when the outcome of the contracts can be reliably estimated, in the proportion which total costs incurred to date bear to the total estimated costs of the contracts. Dividend revenue from investment in subsidiary companies and associated companies is recognised when the right to receive the dividend is established. Dividend revenue from quoted investment is recognised on receipt basis. Rental revenue and management fees are recognised on receivable basis. Interest revenue is recognised on a time proportion basis that reflects the effective yield on the asset. (m) Foreign Currencies Transactions in foreign currencies are converted into Ringgit Malaysia at the rates of exchange ruling at the time of the transaction and where settlement had not taken place as at 30 November, 2003, at the rates ruling as at that date. All gains and losses on exchange are included in the income statement. The principal exchange rates (in unit of foreign currency per Ringgit Malaysia) used in translating foreign currency amounts are as follows:- Year End Rate 2003 2002 RM RM U.S. Dollar 3.80 3.80 Euro 3.60 3.60 (n) Exceptional Items Exceptional items relate to items of income and expense within profit or loss from ordinary activities which are of such size, nature or incidence that their disclosure is relevant to explain the performance of the Group. (o) Cash and Cash Equivalents Cash and cash equivalents comprise cash in hand, bank balances, demand deposits, bank overdrafts and highly liquid investments that are readily convertible to known amount of cash and are subject to insignificant risk of changes in value. (p) Financial Instruments Financial instruments are classified as assets, liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, losses and gains relating to financial instruments classified as assets or liabilities are reported as expense or revenue. Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset when the Company has a legally enforceable right to offset and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. Amtel Holdings Berhad 2003 annual report
Page 1 and 2: 2003 Annual Report Amtel Holdings B
Page 3 and 4: 2 Notice of the Seventh Annual Gene
Page 5 and 6: 4 Statement Accompanying Notice of
Page 7 and 8: 6 Profile of Directors Amtel Holdin
Page 9 and 10: 8 Amtel Holdings Berhad 2003 annual
Page 11 and 12: 10 Amtel Holdings Berhad 2003 annua
Page 17 and 18: 16 Chairman’s Statement It gives
Page 23 and 24: 22 Statement of Internal Control Am
Page 27 and 28: 26 DIRECTORS’ REPORT The Director
Page 29 and 30: 28 DIRECTORS OF THE COMPANY (CONT
Page 31 and 32: 30 REPORT OF THE AUDITORS to the me
Page 33 and 34: 32 BALANCE SHEETS (Cont’d) GROUP
Page 35 and 36: 34 STATEMENTS OF CHANGES IN EQUITY
Page 37 and 38: 36 CASH FLOW STATEMENTS (Cont’d)
Page 39: 38 NOTES TO THE FINANCIAL STATEMENT
Page 43 and 44: 42 NOTES TO THE FINANCIAL STATEMENT
Page 75 and 76: 74 LIST OF PROPERTIES (Cont’d) Ap
Page 77 and 78: 76 LIST OF PROPERTIES (Cont’d) Ap
Page 79 and 80: 78 ANALYSIS OF SHAREHOLDINGS as at
Page 81 and 82: 80 ANALYSIS OF SHAREHOLDINGS (Cont
Page 83 and 84: Then fold here First fold here Amte

Amtel Holdings Berhad - Company Announcements - Bursa Malaysia

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