FORGING AHEAD - Tradewinds Plantation Berhad
FORGING AHEAD - Tradewinds Plantation Berhad
FORGING AHEAD - Tradewinds Plantation Berhad
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6. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS<br />
Estimates and judgments used in preparing the financial statements are continually evaluated by the Directors and are based<br />
on historical experience and other factors, including expectations of future events that are believed to be reasonable under<br />
the circumstances.<br />
6.1 Critical judgments made in applying accounting policies<br />
The following are critical judgments made by management in the process of applying the Group’s accounting policies<br />
that have a significant effect on the amounts recognised in the financial statements.<br />
(a) Non-current assets held for sale<br />
Certain non-current assets and liabilities have been classified as non-current assets held for sale as the management<br />
has committed to a plan to sell the assets and liabilities as at the end of the reporting period. Barring any<br />
unforeseen circumstances, the Group expects that the sale of the assets and liabilities to be completed within the<br />
next twelve (12) months.<br />
(b) Contingent liabilities<br />
Determination of the treatment of contingent liabilities is based on management’s view of the expected outcome of<br />
the contingencies after consulting legal counsel for litigation cases and internal and external experts to the Group<br />
for matters in the ordinary course of the business.<br />
6.2 Key sources of estimation uncertainty<br />
The following are key assumptions concerning the future and other key sources of estimation uncertainty at the end of<br />
the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and<br />
liabilities within the next financial year:<br />
(a) Depreciation and amortisation of property, plant and equipment<br />
FINANCIAL STATEMENTS<br />
The cost of property, plant and equipment is depreciated on a straight-line basis over the assets’ useful lives.<br />
The estimated useful lives applied by the Group as disclosed in Note 4.3 to the financial statements reflect the<br />
Directors’ estimate of the period that the Group expects to derive future economic benefits from the use of the<br />
Group’s property, plant and equipment. These common life expectancies are applied in the various business<br />
segments of the Group. Changes in the expected level of usage and technological developments could impact<br />
the economic useful lives and the residual values of these assets; therefore future depreciation and amortisation<br />
charges could be revised.<br />
TRADEWINDS PLANTATION BERHAD<br />
Annual Report 2010<br />
147