I-Berhad (7029-H) - Bursa Malaysia

38 3. Significant Accounting Policies (cont’d)
e. Fixed Assets and Depreciation
Fixed assets are stated at cost or valuation less accumulated depreciation.
Depreciation is not provided on factory equipment in progress and renovation in progress. Long
leasehold land is depreciated over the period of the leases which will expire between the years 2068
and 2080. Depreciation of other fixed assets is provided on a straight line basis calculated to write off
the cost or valuation of each asset over its estimated useful life.
The principal annual rates of depreciation are:
Buildings Over 45 – 50 years
Plant and machinery and factory equipment 6% to 18%
Office equipment, furniture, fittings and fixtures and renovation 10% to 18%
Motor vehicles 18% to 20%
The long leasehold land and buildings of the Company were revalued in 1982 whereas the long
leasehold land and buildings of the subsidiary were revalued in 1997. No revaluation has been done
since the aforesaid revaluation dates. The directors have not adopted a policy of regular revaluation
of such assets. As permitted under the transitional provisions of International Accounting Standard
No. 16 (Revised) adopted by the Malaysian Accounting Standards Board, those assets are stated at
their values at the revaluation dates less accumulated depreciation.
f. Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes, where appropriate,
direct materials, direct labour, direct charges and production overheads determined on a first-in,
first-out basis.
g. Retirement Benefits
R e t i rement benefits for unionised members are determined by an independent actuarial valuation,
which is based on the schedule of benefits stipulated in the re t i rement benefit plan. Such benefits
a re funded and contributions to The Retirement Benefits Trust Fund are charged to the profit and loss account.
Actuarial assessments are made periodically.
h. Deferred Taxation
Deferred taxation is provided under the liability method for all material timing differences except
w h e re there is reasonable evidence that these timing diff e rences will not reverse in the foreseeable future .
i. Intangible Assets
Intangible assets comprise pre l i m i n a ry and pre-operating expenses and will be written off upon
commencement of operations.
Notes To The Accounts (cont’d)
...31 December, 1999