FORGING AHEAD - Tradewinds Plantation Berhad

144
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)
(n) IC Interpretation 18 Transfers of Assets from Customers is mandatory for annual periods beginning on or after 1
January 2011.
This Interpretation applies to agreements in which an entity receives from a customer an item of property, plant
and equipment that must be used to either connect the customer to a network or to provide the customer with
ongoing access to a supply of goods or services. The entity receiving the transferred item is required to assess
whether the transferred item meets the definition of an asset set out in the Framework. The credit entry would be
accounted for as revenue in accordance with FRS 118.
The Group does not expect any impact on the financial statements arising from the adoption of this Interpretation
because there are no such arrangements in the Group.
(o) IC Interpretation 15 Agreements for the Construction of Real Estate is mandatory for annual periods beginning on
or after 1 January 2012.
This Interpretation applies to the accounting for revenue and associated expenses by entities undertaking
construction of real estate directly or via subcontractors. Within a single agreement, the Group may contract to
deliver goods or services in addition to the construction of real estate. Such an agreement shall therefore, be split
into separately identifiable components.
An agreement for the construction of real estate shall be accounted for in accordance with FRS 111 if the buyer
is able to specify the major structural elements of the design of the real estate before construction begins and/or
specify major structural changes once construction is in progress. Accordingly, revenue shall be recognised by
reference to the stage of completion of the contract.
An agreement for the construction of real estate in which buyers only have limited ability to influence the design
of the real estate or to specify only minor variations to the basic designs is an agreement for the sale of goods
in accordance with FRS 118. Accordingly, revenue shall be recognised by reference to the criteria in paragraph
14 of FRS 118 (e.g. transfer of significant risks and rewards, no continuing managerial involvement nor effective
control, reliable measurement, etc.).
The Group does not expect any significant impact on the financial statements arising from the adoption of this
Interpretation.
(p) Improvements to FRSs (2010) are mandatory for annual periods beginning on or after 1 January 2011.
Amendments to FRS 1 clarifies that FRS 108 does not apply to changes in accounting policies made upon
adoption of FRSs until after the first FRS financial statements have been presented. If changes in accounting
policies or exemptions in this FRS are used, an explanation of such changes together with updated reconciliations
shall be made in each interim financial report. Entities whose operations are subject to rate regulation are
permitted the use of previously revalued amounts as deemed cost. The Group does not expect any impact on the
financial statements arising from the adoption of this amendment.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010