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)
(r) Amendments to FRS 139 is mandatory for annual periods beginning on or after 1 January 2010.
These amendments remove the scope exemption on contracts for contingent consideration in a business
combination. Accordingly, such contracts shall be recognised and measured in accordance with the requirements
of FRS 139.
There is no impact upon adoption of these amendments during the financial year.
5.2 New FRSs that have been issued, but not yet effective and not yet adopted
FINANCIAL STATEMENTS
(a) Amendments to FRS 132 is mandatory for annual periods beginning on or after 1 March 2010 in respect of
classification of rights issues.
The amendments clarifies that rights, options or warrants to acquire a fixed number of the Group’s own equity
instruments for a fixed amount of any currency shall be classified as equity instruments rather than financial
liabilities if the Group offers the rights, options or warrants pro rata to all of its own existing owners of the same
class of its own non-derivative equity instruments.
The Group does not expect any impact on the financial statements arising from the adoption of these amendments.
(b) FRS 1 First-time Adoption of Financial Reporting Standards is mandatory for annual periods beginning on or after
1 July 2010.
This Standard supersedes the existing FRS 1 and shall be applied when the Group adopts FRSs for the first time
via the explicit and unreserved statement of compliance with FRSs. An opening FRS statement of financial position
shall be prepared and presented at the date of transition to FRS, whereby:
(i) All assets and liabilities shall be recognised in accordance with FRSs;
(ii) Items of assets and liabilities shall not be recognised if FRSs do not permit such recognition;
(iii) Items recognised in accordance with previous GAAP shall be reclassified in accordance with FRSs; and
(iv) All recognised assets and liabilities shall be measured in accordance with FRSs.
All resulting adjustments shall therefore be recognised directly in retained earnings at the date of transition to
FRSs.
The Group does not expect any impact on the financial statements arising from the adoption of this Standard.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
139