FORGING AHEAD - Tradewinds Plantation Berhad

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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)
(k) IC Interpretation 13 Customer Loyalty Programmes is mandatory for annual periods beginning on or after 1
January 2010.
This Interpretation requires the separation of award credits as a separately identifiable component of sales
transactions involving the award of free or discounted goods or services in the future. The fair value of the
consideration received or receivable from the initial sale shall be allocated between the award credits and the
other components of the sale.
If the Group supplies the awards itself, the consideration allocated to the award credits shall only be recognised
as revenue when the award credits are redeemed. If a third party supplies the awards, the Group shall assess
whether it is acting as a principal or agent in the transaction.
If the Group is acting as the principal in the transaction, it shall measure its revenue as the gross consideration
allocated to the award credits. If the Group is acting as an agent, it shall measure its revenue as the net amount
retained on its own account, and recognise the net amount as revenue when the third party becomes obliged to
supply the awards and entitled to receive the consideration for doing so.
There is no impact upon adoption of this Interpretation during the financial year.
(l) IC Interpretation 14 FRS 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their
Interaction is mandatory for annual periods beginning on or after 1 January 2010.
This Interpretation applies to all post-employment defined benefits and other long-term employee defined benefits.
This Interpretation clarifies that an economic benefit is available if the Group can realise it at some point during
the life of the plan or when the plan liabilities are settled, and that it does not depend on how the Group intends
to use the surplus.
A right to refund is available to the Group in stipulated circumstances and the economic benefit available shall
be measured as the amount of the surplus at the end of the reporting period less any associated costs. If there are
no minimum funding requirements, the economic benefit available shall be determined as a reduction in future
contributions as the lower of the surplus in the plan and the present value of the future service cost to the Group.
If there is a minimum funding requirement for contributions relating to the future accrual of benefits, the economic
benefit available shall be determined as a reduction in future contributions at the present value of the estimated
future service cost less the estimated minimum funding required in each financial year.
There is no impact upon adoption of this Interpretation during the financial year.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010