Download PDF - ChartNexus

More documents

Recommendations

Info

Notes to the Financial Statements (cont’d) For the financial year ended 31 December 2011 2. Summary of significant accounting policies (cont’d) 2.2 Changes in accounting policies (cont’d) Amendments to FRS 7: Improving Disclosures about Financial Instruments The amended standard requires enhanced disclosure about fair value measurement and liquidity risk. Fair value measurements related to items recorded at fair value are to be disclosed by source of inputs using a three level fair value hierarchy (Level 1, Level 2 and Level 3), by class, for all financial instruments recognised at fair value. A reconciliation between the beginning and ending balance for Level 3 fair value measurements is required. Any significant transfers between levels of the fair value hierarchy and the reasons for those transfers need to be disclosed. The amendments also clarify the requirements for liquidity risk disclosures with respect to derivative transactions and assets used for liquidity management. The fair value measurement disclosures are presented in Note 39. The liquidity risk disclosures are presented in Note 38(c). 2.3 Malaysian Financial Reporting Standards (MFRS) On 19 November 2011, the Malaysian Accounting Standards Board (MASB) issued a new MASB approved accounting framework, the Malaysian Financial Reporting Standards (MFRS Framework). The MFRS Framework is to be applied by all Entities Other Than Private Entities for annual periods beginning on or after 1 January 2012, with the exception of entities that are within the scope of MFRS 141 Agriculture (MFRS 141) and IC Interpretation 15 Agreements for Construction of Real Estate (IC 15), including its parent, significant investor and venturer. The Group and the Company will be required to prepare financial statements using the MFRS Framework in its first MFRS financial statements for the year ending 31 December 2012. In presenting its first MFRS financial statements, the Group and the Company will be required to restate the comparative financial statements to amounts reflecting the application of MFRS Framework. The majority of the adjustments required on transition will be made, retrospectively, against opening retained profits. The Group and the Company have started the assessment of the differences between Financial Reporting Standards and accounting standards under the MFRS Framework and are in the process of assessing the financial effects of the differences. Accordingly, the financial performance and financial position as disclosed in these financial statements for the year ended 31 December 2011 could be different if prepared under the MFRS Framework. The Group and the Company consider that it is achieving its scheduled milestones and expects to be in a position to fully comply with the requirements of the MFRS Framework for the financial year ending 31 December 2012. 2.4 Basis of consolidation Business combinations from 1 January 2011 The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at the reporting date. The financial statements of the subsidiaries used in the preparation of the consolidated financial statements are prepared for the same reporting date as the Company. Consistent accounting policies are applied to like transactions and events in similar circumstances. All intra-group balances, income and expenses and unrealised gains and losses resulting from intra-group transactions are eliminated in full. Acquisitions of subsidiaries are accounted for by applying the acquisition method. Identifiable assets acquired and liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Acquisitionrelated costs are recognised as expenses in the periods in which the costs are incurred and the services are received. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree. MALAYSIA SMELTING CORPORATION (43072-A) • ANNUAL REPORT 2011 87
Notes to the Financial Statements (cont’d) For the financial year ended 31 December 2011 2. Summary of significant accounting policies (cont’d) 88 2.4 Basis of consolidation (cont’d) Business combinations from 1 January 2011 (cont’d) Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability, will be recognised in accordance with FRS 139 either in profit or loss or as change to other comprehensive income. If the contingent consideration is classified as equity, it is not be remeasured until it is finally settled within equity. In business combinations achieved in stages, previously held equity interests in the acquiree are re-measured to fair value at the acquisition date and any corresponding gain or loss is recognised in profit or loss. The Group elects for each individual business combination, whether non-controlling interest in the acquiree (if any) is recognised on the acquisition date at fair value, or at the non-controlling interest’s proportionate share of the acquiree net identifiable assets. Any excess of the sum of the fair value of the consideration transferred in the business combination, the amount of noncontrolling interest in the acquiree (if any), and the fair value of the Group’s previously held equity interest in the acquiree (if any), over the net fair value of the acquiree’s identifiable assets and liabilities is recorded as goodwill in the statement of financial position. The accounting policy for goodwill is set out in Note 2.9(a). In instances where the latter amount exceeds the former, the excess is recognised as a gain on bargain purchase in profit or loss on the acquisition date. Subsidiaries are consolidated from the date of acquisition, being the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. Business combinations before 1 January 2011 In comparison to the above mentioned requirements, the following differences applied: Business combinations are accounted for by applying the purchase method. Transaction costs directly attributable to the acquisition formed part of the acquisition costs. The non-controlling interest (formerly known as minority interest) was measured at the proportionate share of the acquiree’s identifiable net assets. Business combinations achieved in stages were accounted for as separate steps. Adjustments to those fair values relating to previously held interests are treated as a revaluation and recognised in equity. When the Group acquired a business, embedded derivatives separated from the host contract by the acquiree are not reassessed on acquisition unless the business combination results in a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required under the contract. Contingent consideration was recognised if, and only if, the Group had a present obligation, the economic outflow was more likely than not and a reliable estimate was determinable. Subsequent measurements to the contingent consideration affected goodwill. 2.5 Transactions with non-controlling interests Non-controlling interest represents the equity in subsidiaries not attributable, directly or indirectly, to owners of the Company, and is presented separately in the consolidated statement of comprehensive income and within equity in the consolidated statement of financial position, separately from equity attributable to owners of the Company. Changes in the Company owners’ ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. In such circumstances, the carrying amounts of the controlling and non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any difference between the amount by which the non-controlling interest is adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Company. Building on Success: Developing Resources for the Future
Page 1 and 2:
ANNUAL REPORT 2011 Building on Succ
Page 3 and 4:
viSion To be a successful world-cla
Page 5 and 6:
Corporate Profile Malaysia Smelting
Page 7 and 8:
Corporate Profile (cont’d) For of
Page 9 and 10:
Notice of Annual General Meeting NO
Page 11 and 12:
Group Financial Highlights 10 Build
Page 13 and 14:
Board of Directors From left to rig
Page 15 and 16:
Directors’ Profile 14 Building on
Page 17 and 18:
Directors’ Profile (cont’d) 16
Page 19 and 20:
Statement by the Chairman 18 Buildi
Page 21 and 22:
Statement by the Chairman (cont’d
Page 23 and 24:
Group Chief Executive Officer/Execu
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Securing the Future (cont’d) 32 B
Page 35 and 36:
Securing the Future (cont’d) Ore
Page 37 and 38: Tin Market Review 2011-2012 (cont
Page 39 and 40: Tin Market Review 2011-2012 (cont
Page 41 and 42: New Opportunities for Tin Use (cont
Page 47 and 48: Corporate Social Responsibility (co
Page 49 and 50: Corporate Social Responsibility (co
Page 51 and 52: Statement on Corporate Governance (
Page 61 and 62: Audit Committee (cont’d) 3. Quoru
Page 63 and 64: Audit Committee Report Membership T
Page 65 and 66: Audit Committee Report (cont’d) I
Page 67 and 68: Statement on Internal Control (cont
Page 69 and 70: Directors’ Report The directors h
Page 71 and 72: Directors’ Report (cont’d) Dire
Page 73 and 74: Statement by Directors Pursuant to
Page 75 and 76: Independent Auditors’ Report (con
Page 77 and 78: Statements of Comprehensive Income
Page 79 and 80: Statements of Financial Position (c
Page 81 and 82: Statements of Changes in Equity For
Page 83 and 84: Statements of Cash Flows For the fi
Page 85 and 86: Notes to the Financial Statements (
Page 87: Notes to the Financial Statements (
Page 139 and 140:
Notes to the Financial Statements (
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Supplementary information 44. Break
Page 177 and 178:
List of Properties of the Group 31
Page 179 and 180:
Tin Statistics (cont’d) 178 Produ
Page 181 and 182:
Shareholding Statistics as at 21 Ma
Page 183 and 184:
Shareholding Statistics (cont’d)
Page 185 and 186:
184 To: The Company Secretary MALAY
show all

Download PDF - ChartNexus

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?