FINANCIAL STATEMENTS - Mewah Group

More documents

Recommendations

Info

MEWAH INTERNATIONAL INC.NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 20122. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)2.10 Financial guarantees (continued)Financial guarantees are initially recognised at their fair values plus transaction costs in the Company’s statement of financial position.Financial guarantees are subsequently amortised to profit or loss over the period of the subsidiaries’ borrowings, unless it is probablethat the Company will reimburse the bank for an amount higher than the unamortised amount. In this case, the financial guaranteesshall be carried at the expected amount payable to the bank in the Company’s statement of financial position.Intra-group transactions are eliminated on consolidation.2.11 BorrowingsBorrowings are presented as current liabilities unless the Group has an unconditional right to defer settlement for at least 12 monthsafter the statement of financial position date, in which case they are presented as non-current liabilities.Borrowings are initially recognised at fair value (net of transaction costs) and subsequently carried at amortised cost. Any differencebetween the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of theborrowings using the effective interest method.2.12 Trade and other payablesTrade and other payables represent liabilities for goods and services provided to the Group prior to the end of financial year whichare unpaid. They are classified as current liabilities if payment is due within one year or less (or in the normal operating cycle of thebusiness if longer). If not, they are presented as non-current liabilities.Trade and other payables are initially recognised at fair value, and subsequently carried at amortised cost using the effective interestmethod.2.13 Derivative financial instrumentsDerivative financial instruments comprise mainly of crude palm oil and palm oil products forward contracts, futures contracts andcurrency forward contracts.A derivative financial instrument is initially recognised at its fair value on the date the contract is entered into and is subsequentlycarried at its fair value. Fair value changes on derivatives that are not designated or do not qualify for hedge accounting arerecognised in profit or loss within “cost of sales” when the changes arise.Derivative financial instruments are reported in the financial statements on a net basis where legal right of setoff exists. Derivativefinancial instruments are carried as assets when fair value is positive and as liabilities when fair value is negative.2.14 Fair value estimation of financial assets and liabilitiesThe fair values of financial instruments traded in active markets (such as exchange-traded and over-the-counter securities and derivatives)are based on quoted market prices at the statement of financial position date. The quoted market prices used for financial assets are thecurrent bid prices; the appropriate quoted market prices for financial liabilities are the current asking prices.60
ANNUAL REPORT 2012NOTES TOTHE FINANCIAL STATEMENTSFor the financial year ended 31 December 20122. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)2.14 Fair value estimation of financial assets and liabilities (continued)The fair values of financial instruments that are not traded in an active market (such as commodities forward contracts) aredetermined by making references to the prices provided by the Malaysian Palm Oil Board, other similar products and other commodityexchanges, and makes assumptions that are based on market conditions existing at each statement of financial position date. Whereappropriate, quoted market prices or dealer quotes for similar instruments are used.The fair values of currency forward contracts are determined using actively quoted forward exchange rates.The fair values of current financial assets and liabilities carried at amortised cost approximate their carrying amounts.2.15 Leases(a) When the Group is the lessee:(i)Lessee - Finance leasesLeases where the Group assumes substantially all risks and rewards incidental to ownership of the leased assets areclassified as finance leases.The leased assets and the corresponding lease liabilities (net of finance charges) under finance leases are recognised onthe statement of financial position as property, plant and equipment and borrowings respectively, at the inception of theleases based on the lower of the fair value of the leased assets and the present value of the minimum lease payments.Each lease payment is apportioned between the finance expense and the reduction of the outstanding lease liability. Thefinance expense is recognised in profit or loss on a basis that reflects a constant periodic rate of interest on the financelease liability.(ii) Lessee - Operating leasesLeases where substantially all risks and rewards incidental to ownership are retained by the lessors are classified asoperating leases. Payments made under operating leases (net of any incentives received from the lessors) are recognisedin profit or loss on a straight-line basis over the period of the lease.Initial direct costs incurred by the Group in negotiating and arranging operating leases are capitalised as prepayments andrecognised in profit or loss over the lease term on a straight line basis.Contingent rents are recognised as an expense in profit or loss when incurred.61
Page 3 and 4: ANNUAL REPORT 2012DIRECTORS’ REPO
Page 5: ANNUAL REPORT 2012STATEMENT BY DIRE
Page 8 and 9: MEWAH INTERNATIONAL INC.CONSOLIDATE
Page 10 and 11: MEWAH INTERNATIONAL INC.STATEMENT O
Page 12 and 13: MEWAH INTERNATIONAL INC.CONSOLIDATE
Page 14 and 15: MEWAH INTERNATIONAL INC.NOTES TOTHE
Page 40 and 41: MEWAH INTERNATIONAL INC.NOTES TO TH
Page 74 and 75:
MEWAH INTERNATIONAL INC.NOTES TOTHE
Page 76 and 77:
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
show all

FINANCIAL STATEMENTS - Mewah Group

Create successful ePaper yourself

Delete template?

Save as template?