Directors - Boustead Holdings Berhad

Notes to the Financial Statements
2. CHANGES IN ACCOUNTING POLICIES (cont’d.)
(c) FRS 101: Presentation of financial statements
Prior to 1 January 2006, minority interests at the balance sheet date were presented in the
consolidated balance sheet separately from liabilities and equity. Upon the adoption of the revised
FRS 101, minority interests are now presented within total equity. In the consolidated income
statement, minority interests are presented as an allocation of the total profit or loss for the year.
A similar requirement is also applicable to the statement of changes in equity. The revised FRS 101
also requires disclosure, on the face of the statement of changes in equity, total recognised income
and expense for the year, showing separately the amounts attributable to equity holders of the
Company and to minority interests.
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Prior to 1 January 2006, the Group’s share of taxation of Associates accounted for using the equity
method was included as part of the Group’s income tax expense in the consolidated income
statement. Upon the adoption of the revised FRS 101, the share of taxation of Associates
accounted for using the equity method are now included in the respective shares of results reported
in the consolidated income statement before arriving at the Group’s profit before tax.
New planting expenditure previously classified under property, plant and equipment are now
disclosed separately as biological assets. The group maintains its existing policy on biological
assets and shall comply with the provisions of FRS 141: Agriculture when it becomes mandatory
for application in Malaysia.
(d) Effects from adoption of new and revised FRSs
The following tables provide estimates of the extent to which each of the line items in the Group’s
balance sheet and income statement for the year ended 31 December 2006 is lower or higher than
it would have been had the previous policies been applied in the current year. The effects of the
change in accounting policies on the Company’s financial statements is not significant.
(i) Effects on balance sheet as at 31 December 2006
FRS 3 FRS 140 FRS 101 Total
Increase/(decrease) RM’000 RM’000 RM’000 RM’000
Property, plant and equipment –– (255,304) (185,292) (440,596)
Biological assets –– –– 185,292 185,292
Investment properties –– (180,282) –– (180,282)
Investment in Associates (11,214) –– –– (11,214)
Goodwill on consolidation (5,824) –– –– (5,824)
Revaluation reserve –– 11,484 –– 11,484
Retained earnings 17,038 (62,549) –– (45,511)
Minority interests –– (22,928) –– (22,928)
Deferred tax liabilities –– (1,029) –– (1,029)
Other payables –– –– (20,012) (20,012)
Other payables (non-current) –– –- 44,640 44,640
Borrowings (non-current) –– –- (24,628) (24,628)