FORGING AHEAD - Tradewinds Plantation Berhad

142
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
5. ADOPTION OF NEW FRSs AND AMENDMENTS TO FRSs (continued)
5.2 New FRSs that have been issued, but not yet effective and not yet adopted (continued)
(g) IC Interpretation 16 Hedges of a Net Investment in a Foreign Operation is mandatory for annual periods beginning
on or after 1 July 2010.
This Interpretation applies to hedges undertaken on foreign currency risk arising from net investments in foreign
operations and the Group wishes to qualify for hedge accounting in accordance with FRS 139.
Hedge accounting is applicable only to the foreign exchange differences arising between the functional currency
of the foreign operation and the functional currency of any parent (immediate, intermediate or ultimate parent) of
that foreign operation. An exposure to foreign currency risk arising from a net investment in a foreign operation
may qualify for hedge accounting only once in the consolidated financial statements.
Hedging instruments designated in the hedge of a net investment in a foreign operation may be held by any
companies within the Group, as long as the designation, documentation and effectiveness requirements of FRS
139 are met. The Group does not expect any impact on the financial statements arising from the adoption of this
Interpretation.
(h) IC Interpretation 17 Distributions of Non-cash Assets to Owners is mandatory for annual periods beginning on or
after 1 July 2010.
This Interpretation applies to non-reciprocal distributions of non-cash assets by the Group to its owners in their
capacity as owners, as well as distributions that give owners a choice of receiving either non-cash assets or a
cash alternative. This Interpretation also applies to distributions in which all owners of the same class of equity
instruments are treated equally.
The liability to pay a dividend shall be recognised when the dividend is appropriately authorised and is no longer
at the discretion of the Group. The liability shall be measured at the fair value of the assets to be distributed. If the
Group gives its owners a choice of receiving either a non-cash asset or a cash alternative, the dividend payable
shall be estimated by considering the fair value of both alternatives and the associated probability of the owners’
selection.
At the end of each reporting period, the carrying amount of the dividend payable shall be remeasured and any
changes shall be recognised in equity. At the settlement date, any difference between the carrying amounts of
the assets distributed and the carrying amount of the dividend payable shall be recognised in profit or loss. The
Group does not expect any impact on the financial statements arising from the adoption of this Interpretation.
(i) Amendment to FRS 1 Limited Exemption from Comparative FRS 7 Disclosures for First-time Adopters is mandatory
for annual periods beginning on or after 1 January 2011.
This amendment permits a first-time adopter of FRSs to apply the exemption of not restating comparatives for the
disclosures required in Amendments to FRS 7.
The Group does not expect any impact on the financial statements arising from the adoption of this amendment.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010