Sample Disclosure – Note On Long Term Receivables (27 August 2009)

Long term receivables







Amount due from subsidiary companies



Amount due from associated companies







The above amounts due from subsidiaries and associated companies are unsecured, interest free and are not repayable within the next twelve months except for amount due from subsidiaries amounting to RM200,000 (2008 – RM100,000) which are subject to interest at 5% (2008 – 5%) per annum.

Sample Disclosure – Change Of Name (27 August 2009)

Change Of Name

Pursuant to the Extraordinary General Meeting of the shareholders held on 3 January 2009, the name of the Company was changed from ABC Sdn. Bhd. to DEF Sdn. Bhd..

Note: This is disclosed in Directors’ Report and Notes to the financial statements. Throughout the Directors’ Report, Statement By Directors, Statutory Declaration by director/officer, Auditors’ Report and Financial Statements including notes, the name of the Company would be presented as “DEF Sdn. Bhd. (formerly known as ABC Sdn. Bhd.)

Sample Disclosure – Significant Event Subsequent To Balance Sheet Date (26 August 2009)

Significant Event Subsequent To The Balance Sheet Date

On 1 January 2009, ABC Sdn. Bhd.  (a wholly owned subsidiary of the Company), increased its issued and fully paid up share capital from RM2 to RM1,000,000 by way of the issuance of 999,998 new ordinary shares of RM1.00 each for a total consideration of RM999,998 for the purpose of increasing the working capital of the subsidiary.

The newly issued shares rank pari passu in all respects with the existing ordinary shares of the subsidiary company.

Sample Disclosure – Accounting Policy On Other Investments (26 August 2009)

Other investments

Non-current investments other than investments in subsidiaries and associates are stated at cost and an allowance for diminution in value is made where, in the opinion of the Directors, there is a decline other than temporary in the value of such investments. Where there has been a decline other than temporary in the value of an investment, such a decline is recognised as an expense in the period in which the decline is identified. All current investments are carried at the lower of cost and market value, determined on an aggregate portfolio basis by category of investments. Upon disposal of such investment, the difference between net disposal proceeds and its carrying amount is recognised in profit or loss.

Sample Disclosure – Accounting Policy On Investment In Associates (26 August 2009)


An associate is an entity over which the Group and the Company have significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

In the Company’s separate financial statements, an investment in associate is stated at cost less impairment losses, if any. An investment in associate is accounted for in the consolidated financial statements using the equity method of accounting. The investment in associate in the consolidated balance sheet is initially recognised at cost and adjusted thereafter for the post acquisition change in the Group’s share of net assets of the investment.

The interest in the associate is the carrying amount of the investment in the associate under the equity method together with any long-term interest that, in substance, form part of the Group’s net interest in the associate. The Group’s share of the profit or loss of the associate during the financial year is included in the consolidated financial statements, after adjustment to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases.

Distributions received from the associate reduce the carrying amount of the investment. Adjustments to the carrying amount may also be necessary for changes in the Group’s proportionate interest in the associate arising from changes in the associate’s equity that have not been recognised in the associate’s profit or loss. Such changes include those arising from the revaluation of property, plant and equipment and from foreign exchange translation differences. The Group’s share of those changes is recognised directly in equity of the Group.

Unrealised gains and losses on transactions between the Group and the associate are eliminated to the extent of the Group’s interest in the associate.

When the Group’s share of losses in the associate equals to or exceeds its interest in the associate, the carrying amount of that interest is reduced to nil and the Group does not recognise further losses unless it has incurred legal or constructive obligations or made payments on its behalf. The most recent available financial statements of the associate are used by the Group in applying the equity method. When the reporting dates of the financial statements are not coterminous, the share of results is arrived at using the latest audited financial statements for which difference in reporting dates is no more than three (3) months. Adjustments are made for the effects of any significant transactions or events that occur between the intervening periods.

Upon disposal of an investment in associate, the difference between the net disposal proceeds and its carrying amount is included in income statements.

Sample Disclosure – Accounting Policy On Investment In Subsidiary Companies (26 August 2009)


A subsidiary is an entity in which the Group and the Company have power to control the financial and operating policies so as to obtain benefits from its activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group has such power over another entity.

An investment in subsidiary, which is eliminated on consolidation, is stated in the Company’s separate financial statements at cost less impairment losses, if any. On disposal of such an investment, the difference between the net disposal proceeds and its carrying amount is included in profit or loss.