Sample Disclosure – Note On Investment In Associates (31 May 2009)

INVESTMENT IN ASSOCIATES

Investment in associates consists of:

 

Group

Company

 

2009

2008

2009

2008

 

RM

RM

RM

RM

At Cost:

 

 

 

 

Quoted shares

400,000

400,000

400,000

400,000

Unquoted shares

500

500

500

500

 

400,500

400,500

400,000

400,000

Share of post -acquisition results, net of dividend received

230,128

245,750

Impairment loss

(100,500)

(100,500)

(100,500)

(100,500)

 

530,128

545,750

299,500

299,500

At Market Value

 

 

 

 

Quoted shares

501,850

487,154

501,850

487,154

 

 

 

 

 

The following information relates to the associates which are all incorporated in Malaysia.

 

 

Name of Companies

Effective Equity Interest

 

 

Principal Activities

2009

2008

 

 

 

 

Held by the Company

 

 

 

ABC Berhad

42.00%

42.00%

Investment holding and property development

Held through indirect subsidiary, XYZ Sdn Bhd

 

 

 

EFG Berhad

40.00%

40.00%

Provision of property management services

HIJ Sdn Bhd

40.00%

40.00%

Dormant

 

As at day/month/year, investment in a quoted associate of the Company with carrying value amounting to RMXXX,XXX (2008: RMXXX,XXX) has been charged to a licensed bank for banking facilities stated in Note XX.

The directors are of the opinion that the allowance for impairment loss as of year end is adequate as the carrying value of the investment approximates the net assets of the associates.

The summarised financial information in respect of the Group’s associates are as follows:

 

Group

Assets and liabilities

2009

2008

Current assets

1,820,137

1,756,842

Non-current assets

1,589,630

1,642,693

Total assets

3,411,776

3,401,543

Current liabilities

-2,568,461

-2,948,763

Non-current liabilities

-251,836

164,687

Total liabilities

-2,820,297

-3,113,450

Net Assets

591,479

288,093

The Group’s share of net assets

236,592

115,237

Results

   

Revenue

354,262

249,867

Profit for the financial year

65,317

4,512

 

The results of ABC Berhad and its subsidiaries (“ABC Group”) have been equity accounted for and included in the financial statements of the Group based on the latest audited financial statements.

 

Auditors’ report of the ABC Group for the financial year ended day/month/year

In the auditors’ report, the auditors have included an emphasis of matter in respect of the use of going-concern as the basis for the preparation of the financial statements of the ABC Group.

The auditors reported that the financial statements of ABC Group and have a net current liabilities of RMXXX million and RMXXX million respectively as at day/month/year. However, the financial statements of the ABC Group and of ABC Berhad have been prepared on a going concern basis. The application of the going concern basis is based on the assumption that ABC Group and ABC Berhad will be able to complete the Financial Regularisation Plan within the anticipated timeframe and that the ABC Group will be able to achieve sustainable and viable operations in the foreseeable future and consequently, the realisation of the assets and settlement of liabilities in the normal course of business. In this connection, the directors of ABC Berhad are confident that the Financial Regularisation Plan would be completed successfully within the anticipated timeframe.

Accordingly, the financial statements do not include any adjustments relating to the recoverability and classification of assets and the classification of liabilities that might be necessary should ABC Group be unable to continue as a going concern.

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