FORGING AHEAD - Tradewinds Plantation Berhad

5. ADOPTION OF NEW FRSs AND AMENDMENTS TO FRSs (continued)
5.1 New FRSs adopted during the current financial year (continued)
FINANCIAL STATEMENTS
(p) Improvements to FRSs (2009) are mandatory for annual periods beginning on or after 1 January 2010. (continued)
Amendment to FRS 117 Leases removes the classification of leases of land and of buildings, and instead, requires
assessment of classification based on the risks and rewards of the lease itself. The reassessment of land elements
of unexpired leases shall be made retrospectively in accordance with FRS 108. As at the end of the reporting
period, the Group has carrying amount of prepaid lease payments for land of RM1,114,243,000 (see Notes
7 and 43 to the financial statements) that has been reclassified as land held in accordance with FRS 116 upon
adoption of this amendment.
Amendment to FRS 118 clarifies reference made on the term ‘transaction costs’ to the definition in FRS 139. There
is no impact upon adoption of this amendment during the financial year.
Amendment to FRS 119 Employee Benefits clarifies the definitions in this Standard by consistently applying
settlement dates within twelve (12) months in the distinction between short-term employee benefits and other longterm
employee benefits. This amendment also provides additional explanations on negative past service cost and
curtailments. There is no impact upon adoption of this amendment during the financial year.
Amendment to FRS 120 Accounting for Government Grants and Disclosure of Government Assistance streamlines
the terms used in this Standard in accordance with the new terms used in FRS 101. There is no impact upon
adoption of this amendment during the financial year.
Amendment to FRS 123 clarifies that interest expense calculated using the effective interest rate method described
in FRS 139 qualifies for recognition as borrowing costs. There is no impact upon adoption of this amendment
during the financial year.
Amendment to FRS 127 Consolidated and Separate Financial Statements clarifies that investments measured at
cost shall be accounted for in accordance with FRS 5 when they are held for sale in accordance with FRS 5. There
is no impact upon adoption of this amendment during the financial year.
Amendment to FRS 128 Investments in Associates clarifies that investments in associates held by venture capital
organisations, or mutual funds, unit trusts and similar entities shall make disclosures on the nature and extent of
any significant restrictions on the ability of associates to transfer funds to the investor in the form of cash dividends,
or repayment of loans or advances. This amendment also clarifies that impairment loss recognised in accordance
with FRS 136 Impairment of Assets shall not be allocated to any asset, including goodwill, that forms the carrying
amount of the investment. Accordingly, any reversal of that impairment loss shall be recognised in accordance
with FRS 136. There is no impact upon adoption of this amendment during the financial year.
Amendment to FRS 129 Financial Reporting in Hyperinflationary Economies streamlines the terms used in this
Standard in accordance with the new terms used in FRS 101. This amendment also clarifies that assets and
liabilities that are measured at fair value are exempted from the requirement to apply historical cost basis of
accounting. There is no impact upon adoption of this amendment during the financial year.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
137