FORGING AHEAD - Tradewinds Plantation Berhad

132
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
5. ADOPTION OF NEW FRSs AND AMENDMENTS TO FRSs (continued)
5.1 New FRSs adopted during the current financial year (continued)
(d) FRS 123 Borrowing Costs and the consequential amendments resulting from FRS 123 are mandatory for annual
periods beginning on or after 1 January 2010.
This Standard removes the option of immediately recognising as an expense borrowing costs that are directly
attributable to the acquisition, construction or production of a qualifying asset. However, capitalisation of
borrowing costs is not required for assets measured at fair value, and inventories that are manufactured or
produced in large quantities on a repetitive basis, even if they take a substantial period of time to get ready for
use or sale.
There is no impact upon adoption of this Standard during the financial year.
(e) FRS 139 Financial Instruments: Recognition and Measurement and the consequential amendments resulting from
FRS 139 are mandatory for annual financial periods beginning on or after 1 January 2010.
This Standard establishes the principles for the recognition and measurement of financial assets and financial
liabilities including circumstances under which hedge accounting is permitted.
The impact upon adoption of this Standard is disclosed in Note 44 to the financial statements.
(f) Amendments to FRS 2 Share-based Payment: Vesting Conditions and Cancellations are mandatory for annual
financial periods beginning on or after 1 January 2010.
These amendments clarify that vesting conditions comprise service conditions and performance conditions only.
Cancellations by parties other than the Group are accounted for in the same manner as cancellations by the
Group itself and features of a share-based payment that are non-vesting conditions are included in the grant date
fair value of the share-based payment.
There is no impact upon adoption of these amendments during the financial year.
(g) Amendments to FRS 1 First-time Adoption of Financial Reporting Standards and FRS 127 Consolidated and
Separate Financial Statements: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate is
mandatory for annual periods beginning on or after 1 January 2010.
These amendments allow first-time adopters to use a deemed cost of either fair value or the carrying amount under
previous accounting practice to measure the initial cost of investments in subsidiaries, jointly controlled entities
and associates in the separate financial statements. The cost method of accounting for an investment has also
been removed pursuant to these amendments.
There is no impact upon adoption of these amendments during the financial year.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010