FORGING AHEAD - Tradewinds Plantation Berhad

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)
FINANCIAL STATEMENTS
(e) Amendments to FRSs are mandatory for annual periods beginning on or after 1 July 2010. (continued)
Amendments to FRS 5 clarifies that non-current asset classified as held for distribution to owners acting in their
capacity as owners are within the scope of this Standard. The amendment also clarifies that in determining whether a
sale is highly probable, the probability of shareholders’ approval, if required in the jurisdiction, shall be considered.
In a sale plan involving loss of control of a subsidiary, all assets and liabilities of that subsidiary shall be classified as
held for sale, regardless of whether the Group retains a non-controlling interest in its former subsidiary after the sale.
Discontinued operations information shall also be presented. Non-current asset classified as held for distribution to
owners shall be measured at the lower of its carrying amount and fair value less costs to distribute. The Group does
not expect any impact on the financial statements arising from the adoption of this amendment.
Amendments to FRS 138 clarifies that the intention of separating an intangible asset is irrelevant in determining the
identifiability of the intangible asset. In a separate acquisition and acquisition as part of a business combination,
the price paid by the Group reflects the expectations of the Group of an inflow of economic benefits, even
if there is uncertainty about the timing or the amount of the inflow. Accordingly, the probability criterion is
always considered to be satisfied for separately acquired intangible assets. The useful life of a reacquired right
recognised as an intangible asset in a business combination shall be the remaining contractual period of the
contract in which the right was granted, and do not include renewal periods. In the case of a reacquired right in
a business combination, if the right is subsequently reissued to a third party, the related carrying amount shall be
used in determining the gain or loss on reissue. The Group does not expect any impact on the financial statements
arising from the adoption of this amendment.
Amendments to IC Interpretation 9 clarifies that embedded derivatives in contracts acquired in a business
combination, combination of entities or business under common controls, or the formation of a joint venture are
excluded from this Interpretation. The Group does not expect any impact on the financial statements arising from
the adoption of this amendment.
(f) IC Interpretation 12 Service Concession Arrangements is mandatory for annual periods beginning on or after 1
July 2010.
This Interpretation applies to operators for public-to-private service concession arrangements, whereby infrastructure
within the scope of this Interpretation shall not be recognised as property, plant and equipment of the operator.
The operator shall recognise and measure revenue in accordance with FRS 111 Construction Contracts and FRS
118 for the services performed. The operator shall also account for revenue and costs relating to construction or
upgrade services in accordance with FRS 111.
Consideration received or receivable by the operator for the provision of construction or upgrade services shall
be recognised at its fair value. If the consideration consists of an unconditional contractual right to receive cash or
another financial asset from the grantor, it shall be classified as a financial asset. Conversely, if the consideration
consists of a right to charge users of the public service, it shall be classified as an intangible asset.
The Group does not expect any impact on the financial statements arising from the adoption of this Interpretation.
TRADEWINDS PLANTATION BERHAD
Annual Report 2010
141