FORGING AHEAD - Tradewinds Plantation Berhad

140
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
31 DECEMBER 2010
5. ADOPTION OF NEW FRSs AND AMENDMENTS TO FRSs (continued)
5.2 New FRSs that have been issued, but not yet effective and not yet adopted (continued)
(c) FRS 3 Business Combinations is mandatory for annual periods beginning on or after 1 July 2010.
This Standard supersedes the existing FRS 3 and now includes business combinations involving mutual entities
and those achieved by way of contract alone. Any non-controlling interest in an acquiree shall be measured at
fair value or as the non-controlling interest’s proportionate share of the acquiree’s net identifiable assets.
The time limit on the adjustment to goodwill due to the arrival of new information on the crystallisation of deferred
tax benefits shall be restricted to the measurement period resulting from the arrival of the new information.
Contingent liabilities acquired arising from present obligations shall be recognised, regardless of the probability
of outflow of economic resources.
Acquisition-related costs shall be accounted for as expenses in the periods in which the costs are incurred and the
services are received. Consideration transferred in a business combination, including contingent consideration,
shall be measured and recognised at fair value at acquisition date.
In business combinations achieved in stages, the acquirer shall remeasure its previously held equity interest at its
acquisition date fair value and recognise the resulting gain or loss in profit or loss.
The Group does not expect any impact on the financial statements arising from the adoption of this Standard.
(d) FRS 127 Consolidated and Separate Financial Statements is mandatory for annual periods beginning on or after
1 July 2010.
This Standard supersedes the existing FRS 127 and replaces the current term ‘minority interest’ with a new term
‘non-controlling interest’ which is defined as the equity in a subsidiary that is not attributable, directly or indirectly,
to a parent. Accordingly, total comprehensive income shall be attributed to the owners of the parent and to the
non-controlling interests, even if this results in the non-controlling interests having a deficit balance.
Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions. If the Group loses control of a subsidiary, any gains or losses are recognised in profit
or loss and any investment retained in the former subsidiary shall be measured at its fair value at the date when
control is lost.
As at the end of the reporting period, the Group reports minority interests of RM123,459,000. The Group does
not expect any impact on the financial statements arising from the adoption of this Standard.
(e) Amendments to FRSs are mandatory for annual periods beginning on or after 1 July 2010.
Amendments to FRS 2 Share-based Payment clarifies that transactions in which the Group acquired goods as
part of the net assets acquired in a business combination or contribution of a business on the formation of a joint
venture are excluded from the scope of this Standard. The Group does not expect any impact on the financial
statements arising from the adoption of this amendment.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010