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

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annual report 2009 | Gula peraK BerHaD (8104-X)
NOTES TO THE FINANCIAL STATEMENTS (Cont’d)
3. SIGNIFICANT ACCOUNTING POLICIES (Cont’d)
Functional Currency and Foreign Currencies Conversion (cont’d)
The principal closing rates used in the translation of foreign currency amounts are as follows:
Foreign currency
2009 2008
RM RM
1 United States Dollar 3.03 3.20
1 Singapore Dollar 2.22 2.32
100 Hong Kong Dollars 38.86 41.04
Employee Benefits
(1) Short term employee benefits
Wages, salaries, paid annual leave and sick leave, bonuses and non-monetary benefits are accrued in the period in which
the associated services are rendered by employees of the Group.
(2) Defined contribution plans
The Group makes statutory contributions to approved provident funds and are charged to the income statements in the
year to which they relate. Once the contributions have been paid, the Group has no further payment obligations. The
contributions to the Employees Provident Fund are included under staff costs as mentioned in Note 9.
Land Held for Property Development
Land held for property development is stated at cost less accumulated impairment losses. When significant development
work has been undertaken and is expected to be completed within the normal operating cycle, the assets are then classified
at its carrying value to property development projects under current assets.
Property, Plant and Equipment
Property, plant and equipment are stated at cost or valuation less accumulated depreciation and accumulated impairment
losses.
Hotel properties comprise hotel freehold land, hotel buildings and their integral plant and machinery. Hotel properties
are initially stated at cost or are subsequently shown at fair value, based on valuations by external independent valuers.
Additions subsequent to the date of valuation are stated at cost. It is the Group’s policy to revalue the hotel properties once
in every five years, based on their open market value. Surpluses arising on revaluation are credited to Revaluation Reserve.
Any deficit arising from revaluation is charged against the Revaluation Reserve to the extent of a previous surplus (if any)
held in the Revaluation Reserve of the same asset. In all other cases, a decrease in carrying amount is charged to income
statements.
No depreciation is provided on hotel freehold land and hotel property work-in-progress. The hotel buildings and their
integral plant and machinery are depreciated over their expected remaining useful lives of 40 and 42 years respectively.
Other property, plant and equipment are depreciated on the straight-line basis to write down the cost of the assets to their
residual values over their estimated useful lives, at the following annual rate:
%
Building 10
Office equipment 10 – 25
Plant, machinery and equipment 10 – 20
Renovations 15
Furniture and fittings 10 – 15
Motor vehicles 20