Sample Disclosure – Financial Instruments (19 February 2009)

Financial Instruments

Financial instruments are recognised in the balance sheet when the Group has become a party to the contractual provisions of the instruments. Financial instruments are classified as liabilities or equity in accordance with the substance of the contractual arrangement. Interest, dividends, gains and losses relating to a financial instrument classified as a liability, are reported as expense or income. Distributions to holders of financial instruments classified as equity are charged directly to equity. Financial instruments are offset when the Group has a legally enforceable right to offset and intends to settle either on a net basis or to realise the asset and settle the liability simultaneously.

Other Non-Current Investments                

Other non-current investments (other than investments in subsidiaries, associates and investment properties) are stated at cost less allowance for diminution in value. Cost is determined on the weighted average basis while market value is determined based on quoted market values. On disposal of an investment, the difference between the net disposal proceeds and its carrying amount is recognised in the income statement.

Trade Receivables

Trade receivables are recognised and stated at original invoiced amounts and carried at anticipated realizable values. Bad debts are written off when it is established that they are irrecoverable. Specific allowance is made for known doubtful debts. An estimate is made for doubtful debts based on a review of all outstanding amounts as at the balance sheet date.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, balances and deposits with licensed financial institutions and fixed income trust funds that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, net of outstanding bank overdraft.

Trade Payables

Trade payables are stated at cost which approximates the fair value of the consideration to be paid in the future for goods and services rendered.

Interest-Bearing Borrowings

Interest-bearing bank loans and overdrafts are recorded at the amount of proceeds received, net of transaction costs. Borrowing costs directly attributable to the acquisition and construction of plant and equipment are capitalized as part of the cost of those assets, until such time as the assets are ready for their intended use. All other borrowing costs are charged to the income statement as an expense in the period in which they are incurred.

Equity Instruments

Ordinary shares are classified as equity. Dividends payable on ordinary shares are recognised in equity in the period in which they are declared. The transaction costs of an equity transaction, other than in the context of a business combination, are accounted for as a deduction from equity, net of tax. Equity transaction costs comprise only those incremental external costs directly attributable to the equity transaction which would otherwise have been avoided. Cost of issuing equity securities in connection with a business combination is included in the cost of acquisition. When the share capital of the Company is repurchased, the consideration paid, including any attributable transaction costs, is presented as a change in equity. Repurchased shares are classified as treasury shares and presented as a deduction from equity. No gain or loss is recognised in the income statement on the sale, re-issuance or cancellation of treasury shares. Consideration received is presented in the financial statements as a change in equity.

Derivative Financial Instruments

The Group uses derivative financial instruments in the form of forward exchange contracts to hedge its exposure to foreign exchange arising from operating, financing and investing activities. In accordance with its treasury policy, the Group does not hold or issue derivative financial instruments for trading purposes. Derivative financial instruments are not recognised in the financial statements on inception. The underlying foreign currency assets or liabilities are translated at their respective hedged exchange rates and all exchange gains or losses are recognised as income or expense in the income statement in the same period as the exchange differences on the underlying hedged items. Exchange gains and losses arising on contracts entered into as hedges of anticipated future transactions are deferred until the date of such transaction, at which time they are included in the measurement of such transactions.

Sample Disclosure – Biological Assets and Replanting Expenditure (19 February 2009)

Biological Assets and Replanting Expenditure

(i) Plantation development expenditure

New planting expenditure incurred on land clearing and upkeep of trees to maturity is capitalised as plantation development expenditure under biological assets and is not amortised.

(ii) Replanting expenditure

Replanting expenditure is charged to the income statement in the year in which the expenditure is incurred.

Sample Disclosure – Auditors’ Report Pursuant to Section 17 (2)(b) of the Building and Common Property (Maintenance and Management) Act 2007 (19 February 2009)

Report of the auditors pursuant to Section 17 (2)(b) of the Building and Common Property (Maintenance and Management) Act 2007 for XXX Condominium (“the Property) developed by ABC Berhad (“the Company”) to the Commissioner of Buildings

We have audited the accompanying statement of receipts and payments on moneys collected and expended (“the Statement”) for the purpose of maintenance and management of the Property developed by the Company stated from page x to page x for the year ended (day/month/year) pursuant to Section 17 (2)(b) of the Building and Common Property Maintenance and Management) Act 2007.

Directors’ Responsibility

The directors of the Company are responsible for the preparation and fair presentation of the Statement in accordance with cash receipts and payments basis of accounting. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the Statement that is free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on the Statement based on our audit. We conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the Statement is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Statement. The procedures selected depend on our judgment, including the assessment of risks of material misstatement of the Statement, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company’s preparation and fair presentation of the Statement in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the overall presentation of the Statement.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the Statement presents fairly, in all material respects, the cash receipts and payments of the Property for the year ended (day/month/year) in accordance with the cash receipts and disbursements basis of accounting.

Other Matter

The Statement has been prepared in accordance with the cash receipts and disbursements basis of accounting pursuant to Section 17 (2)(b) of the Building and Common Property (Maintenance and Management) Act 2007. Our report is intended solely for ABC Sdn Bhd and Commissioner of Buildings only and for no other purpose.

Sample Disclosure – Directors’ Responsibility Statement (19 February 2009)

The Board of Directors is required under Paragraph 15.27(a) of the Bursa Malaysia Securities Berhad Listing Requirements to issue a statement, which follows, explaining their responsibility for preparing the annual audited financial statements.

The directors are required by law to prepare financial statements for each financial year which give a true and fair view of the financial position of the Group and of the Company as at the financial year end and of the results and the cash flows of the Group and of the Company for that financial year.

The Directors consider that, in preparing the financial statements of ABC Berhad for the financial year ended (day/month/year), the Group has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgements and estimates. The directors also consider that all applicable Financial Reporting Standards in Malaysia have been followed and confirm that the financial statements have been prepared on a going concern basis.

The directors are responsible for ensuring that the Group and the Company keep accounting records which disclose with reasonable accuracy the financial position of the Group and of the Company at any time and which enable them to ensure that the financial statements comply with the provisions of the Companies Act, 1965.

The Directors are also responsible for taking such steps that are reasonably open to them to safeguard the assets of the Group.

Sample Disclosure – Note On Bank Borrowings (16 February 2009)

BANK BORROWINGS

2008

2007

Secured:-

RM

RM

Bank overdraft

xxx,xxx

xxx,xxx

Revolving credit

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

a. Bank Overdraft

The bank overdraft bore an interest rate of x% above the bank’s base lending rate.

Security:

i) 3rd Party 1st legal charge over the project land of the Company.

ii) Pledge of fixed deposit sum of not less than RMx million together with Memorandum of Deposit and Letter of Set-off duly executed and stamped.

iii) Personal guarantee by the directors of the Company.

b. Revolving credit

The revolving credit is secured by a legal charge over the freehold land and building of the Company and personal guaranteed by the directors of the Company.

The revolving credit bears effective interest at rates of x% per annum.

Sample Disclosure – Note On Property Development Costs (13 February 2009)

PROPERTY DEVELOPMENT COSTS


2008

RM

2007

RM

Land – at cost

x,xxx,xxx

x,xxx,xxx

Add : Incidental costs

xxx,xxx

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

Cumulative land cost recognised as an expense in income

Statement

(x,xxx,xxx)

(x,xxx,xxx)

x,xxx,xxx

x,xxx,xxx

Add : Development costs
Balance at beginning of year

x,xxx,xxx

x,xxx,xxx

Additions during the financial year

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

Less: Cumulative development costs recognised as an

expense in income statement

(x,xxx,xxx)

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

Less: Transfer to closing inventories (Note x)

(x,xxx,xxx)

x,xxx,xxx

x,xxx,xxx

x,xxx,xxx

Included in development cost is the interest charged as follows:

2008

RM

2007

RM

Balance at beginning of year

x,xxx,xxx

x,xxx,xxx

Amount included in additions during the year

xxx,xxx

xxx,xxx

Balance at end of year

x,xxx,xxx

x,xxx,xxx