SIGNIFICANT EVENT SUBSEQUENT TO THE BALANCE SHEET DATE
On 18 November 2010, the Group through its wholly-owned subsidiary company, DEF Sdn. Bhd., subscribed for the entire ordinary shares of GHI Sdn. BHd., for a total cash consideration of RM1,000, resulting in the latter becoming a wholly-owned subsidiary company of the Group.
Biological Assets – Forest planting expenditure
All direct and related expenses incurred on the development of the Company’s Sustainable Forest Ecology and Management Project under the licensed agreement entered into with the State Government of Wonderland is stated at cost and capitalised as biological assets. The expenditure is amortised upon the commencement of log extraction on the basis of the volume of logs extracted during the financial year as a proportion of the total estimated volume of the entire forest area.
NOTE 15. NON-CURRENT ASSETS HELD FOR SALE
The above represents the remaining assets held for sale as a result of the closure of the glass packaging plant of a subsidiary.
Please click this for all the relevant disclosure in one place: Sample Disclosure Of Continuing And Discontinued Operations In One Place (27 January 2011)
NOTE 5. DISCONTINUED OPERATIONS
On 1 July 2010, the Company entered into a conditional share purchase agreement with XYZ International Sdn. Bhd. for the disposal of its 100% equity interest in DEF Bottles and Containers Sdn. Bhd. (“DEF”) comprising 100,000 ordinary shares of RM1.00 each, representing the whole of the issued and fully paid-up share capital of DEF for a total cash consideration of RM700,000 and the settlement of the Intra-Group Loans owing by the DEF to the other companies within the Group.
The disposal was completed on 15 September 2010.
The analysis of the total gain on disposal, carrying values of the assets and liabilities disposed, and also the net cash inflow from the disposal were as follows:
The results of the disposal group, which represents the entire bottles and containers manufacturing and packaging business under DEF, and the cash flows from discontinued operations are disclosed under discontinued operations in the financial year ended 30 November 2010 and the comparative results have been restated accordingly.
Please click this for all the relevant disclosure in one place: Sample Disclosure Of Continuing And Discontinued Operations In One Place (27 January 2011)
Warrants reserve
Proceeds from the issuance of warrants, net of issue costs, are credited to warrants reserve. Warrants reserve is non-distributable and will be transferred to share premium account upon the exercise of warrants. Balance of warrants reserve in relation to the unexercised warrants at the expiry of the warrants period will be transferred to accumulated profits.
Investment Properties
Investment properties are held for long term rental yields or for capital appreciation or both, and are not occupied by companies within the Group.
Investment properties are measured initially at cost. After initial recognition, investment properties are measured and carried at fair value.
Fair value is based on valuation performed by appointed independent registered valuer(s) taking into account factors such as the property growth and market in the surrounding area. The fair value of the investment properties reflects the market conditions at the balance sheet date. Changes in fair values are recorded in the income statement as investment properties fair value adjustment.
On disposal of an investment property, or when it is permanently withdrawn from use and future economic benefits no longer are expected from the property concerned, it shall be derecognised. The difference between the net disposal proceeds and the carrying value is recognised in the income statement in the period of the retirement or disposal.
Transfer to or from investment property will be made when there is a change in use of the property. The commencement of owner-occupation for the property would result in a transfer of the investment property to self-occupied property, included in category of asset named “Property, Plant and Equipment”. On the other hand, the end of owner-occupation of a property would result in a transfer from the self-occupied property which is included in Property, Plant and Equipment to the category of asset known as “Investment Properties”.
If a self-occupied property became an investment property that will be carried at fair value, the revaluation surplus of the self-occupied property, included in Asset Revaluation Reserve account would be transferred to accumulated profits.
For a transfer from investment property which is carried at fair value to self-occupied property, the fair value of the property at the date of change in use would be treated as deemed cost of the property for subsequent accounting purposes.
For the transfer of investment property to prepaid lease payments, the Group have adopted the transitional provision stated in Para 67A of FRS 117 which allows the Group to retain the unamortised revalued amount of the property as the surrogate carrying amount of prepaid lease payments.
