MITRA-AnnualReport2011 (1.2MB).pdf - Announcements - Bursa ...

Notes to The Financial Statements (cont’d)
3. SIGNIfICANT ACCoUNTING JUDGEMENTS AND ESTIMATES (CoNT’D)
3.2 key sources of estimation uncertainty (cont’d)
(x) Net Realisable values of Inventories
Reviews are made periodically by management on damaged, obsolete and slow-moving inventories. These
reviews require judgement and estimates. Possible changes in these estimates could result in revisions to
the valuation of inventories.
As at the end of the reporting period, the Directors of the Company are of the opinion that there is no
adjustment required resulting from the impairment review.
(xi) Impairment of Investment in Subsidiary Companies and Associate
The Group and the Company carried out the impairment test based on a variety of estimation including
the value-in-use of the cash generating unit. Estimating the value-in-use requires the Group to make an
estimate of the expected future cash flows from the cash generating unit and also to choose a suitable
discount rate in order to calculate the present value of those cash flows.
As at the end of the reporting period, the directors of the Company are of the opinion that there is no
adjustment required resulting from the impairment review.
(xii) Determination of fair value
The Directors are of the opinion that the long term financial liabilities approximates its fair value because
they are floating rate instruments which are deemed to be re-priced at the current prevailing market rates.
MITRAJAYA HOLDINGS BERHAD ANNUAL REPORT 2011
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