GPERAK-AnnualReport2009 (1MB).pdf - Bursa Malaysia

annual report 2009 | Gula peraK BerHaD (8104-X)
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Revenue
Revenue from hotel operations and oil palm plantation are recognised upon delivery of products or performance of service,
net of sales tax and discounts.
Profit from property development and construction contracts are recognised using the percentage of completion method.
The stage of completion is measured by reference to the actual cost incurred to date to estimated total cost of each
contract. All foreseeable losses are recognised as soon as they are anticipated.
Rental income from shoplots is recognised on an accrual basis unless collectability is in doubt. Interest income is recognised
as it accrues.
Income Tax
Income tax for the year comprises current and deferred tax. Current tax is the expected amount of income taxes payable
in respect of the taxable profit for the year and is measured using the tax rates that have been enacted or substantively
enacted at the balance sheet date.
Deferred tax is accounted for using the “balance sheet liability” method in respect of temporary differences arising from
differences between the carrying amounts of assets and liabilities in the financial statements and their corresponding tax
bases used in the computation of taxable profit.
In principle, deferred tax liabilities are recognised for all taxable temporary differences, and deferred tax assets are
recognised for all deductible temporary differences, unutilised tax losses and unabsorbed capital allowances to the extent
that it is probable that future taxable profit will be available against which the deductible temporary differences, unutilised
tax losses and unabsorbed capital allowances can be utilised.
Deferred tax is measured at tax rates that are expected to apply in the period when the asset is realised or the liability
is settled, based on tax rates that have been enacted or substantively enacted at the balance sheet date. Deferred tax is
recognised in the income statements, except when it arises from a transaction which is recognised directly in equity, in which
case the deferred tax is also charged or credited directly in equity. Deferred tax is provided for temporary differences arising
from surplus on revaluation of a hotel property and investment properties of the Group.
Functional Currency and Foreign Currencies Conversion
The individual financial statements of each entity in the Group are presented in the currency of the primary economic
environment in which the entity operates (its functional currency). The functional currency of each entity in the Group is
Ringgit Malaysia. For the purpose of the consolidated financial statements, the results and financial position of each entity
are expressed in Ringgit Malaysia, which is the functional currency of the Group and the Company, and the presentation
currency for the consolidated financial statements.
In preparing the financial statements of the Company, transactions in currencies other than the Company’s functional
currency (foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each
balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing on the
balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated
at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary items, are included
in profit or loss for the period. Exchange differences arising on the retranslation of non-monetary items carried at fair value
are included in profit or loss for the period except for differences (if any) arising on the retranslation of non-monetary
items in respect of which gains and losses are recognised directly in equity. For such non-monetary items, any exchange
component of that gain or loss is also recognised directly in equity.
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