Sample Disclosure – Note On Capital Commitments (10 December 2010)

CAPITAL COMMITMENTS

Capital commitments contracted but not provided for in the financial statements are as follows:

On 1 April 2010, the Company entered into a sale and purchase agreement (“SPA”) to purchase a piece of land for a consideration of RM49 million. As at the date of this report, the Company has paid a deposit sum of RM4.9 million, representing 10% of the purchase consideration of the said land. Settlement of the balance sum is currently pending fulfilment of certain key SPA conditions by the vendor.

Sample Disclosure – Accounting Policy On Property Construction-in-progress (28 Ocotber 2009)

Property construction-in-progress

Property construction-in-progress is stated at cost and not depreciated. The property would be transferred to property, plant and equipment or investment property (depending on the intended purpose and use of the property) upon completion.

Note: The balance of unrecognized amount of property construction-in-progress compared to the contracted full price is disclosed as capital commitment

Sample Disclosure – Accounting Policy On Capital Work-in-progress (27 October 2009)

Capital work-in-progress

Capital work-in-progress is stated at cost and not depreciated. Depreciation on capital work-in-progress commences when the assets are ready for their intended use.

Note: This is usually disclosed as an asset category of property, plant and equipment. The balance of unrecognized amount of capital work-in-progress compared to the contracted full price is disclosed as capital commitment

Sample Disclosure – Note On Capital Commitments (10 September 2009)

Capital Commitments

 

2009

2008

 

RM

RM

Approved and contracted:

 

 

Purchase of property, plant and equipment

20,000

15,000

Approved but not contracted:

 

 

Purchase of property, plant and equipment

10,000

12,000

 

30,000

27,000