Sample Disclosure in Financial Statements – Page 5

Sample Disclosure – Accounting Policy Of Biological Assets (22 November 2009)

Biological Assets

All expenses incurred in land preparation, planting and development of crops up to maturity are capitalised as biological assets; all expenses subsequent to maturity are recognised directly in income statement.

Biological assets are stated at revalued amount, which is the fair value at date of revaluation less any accumulated impairment losses. Fair value is determined by market-based evidence by appraisal that is carried out by professionally qualified valuers. Revaluation of biological assets are carried out at sufficient regularity and any material differences are adjusted accordingly to ensure that the carrying value of the assets does not differ materially from the fair values determined as at balance sheet date.

Any revaluation surplus is credited to the revaluation reserve account, except that if the surplus reverses the previously recognised revaluation decrease in income statement of the same asset, such surplus would be recognised in income statement until it completely reverses the previously recognised revaluation decrease before any excess amount of surplus is recognised in the revaluation reserve account within equity. Such revaluation reserve account is classified as part of non-distributable reserves within equity section of the Company.

A revaluation decrease is first recorded as a set-off against the amount of previously recognised revaluation surplus in equity of the same asset and any balance of revaluation decrease thereafter are recognised in income statement.

Upon disposal or retirement of biological assets, the differences between the disposal proceeds and the carrying value of such biological assets are recognised as gains or losses in income statement accordingly. Any balance of revaluation reserve account for such assets are then transferred to retained earnings and thereafter is available for distribution to the equity holders of the Company.

Sample Disclosure – Accounting Policy Of Inventories, Oil Palm Sector (20 November 2009)

Inventories

Inventories of the Group and of Company comprise the following:-

Harvested Oil Palm Fruits
Work-in-progress and Finished Palm Oil Products
Oil Palm Seedlings
Stores and Consumable Supplies

The above inventories are stated at the lower of cost (determined using first-in-first-out basis) and net realisable value. Cost of harvested oil palm seeds, oil palm seedlings and stores and consumable supplies comprise costs incurred in bringing the these inventories to their present location and condition. The cost of work-inprogress and finished palm oil products includes materials, labour and an appropriate proportion of manufacturing overhead.

Net realisable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling and distribution as relevant to each type of inventories.

The carrying value of any obsolete inventories is written off as an expense in income statement.

Allowance for decrease in value is made for obsolescence and deterioration for each specific type of inventories accordingly should these inventories are carried within the Group and the Company longer than their normal operating cycles.

Sample Disclosure – Note On Early Adoption Of Accounting Standards, FRS 123 Borrowing Costs (10 November 2009)

Early Adoption Of Accounting Standards – FRS 123 Borrowing Costs

The Company has applied early adoption of FRS 123, Borrowing Costs for the current financial year although compliance with this standard is mandatory only with effect from 1 January 2010. The effect of the change in the accounting policy due to the early adoption of FRS 123 increased the profit before tax of the Company by RM1,000,000 for the current financial and increased its property, plant and equipment as at balance sheet date by the same amount.

Sample Disclosure – Note On Correction Of Prior Year Errors (8 November 2009)

Adjustment Made In Respect Of Correction Of Prior Year Error

In the previous financial year, a wholly owned subsidiary company declared an interim tax exempt dividend of RM0.10 per share on its 10,000,000 ordinary shares of RM1/- each amounting to RM1,000,000. However, the dividend was omitted from recording in the financial statements of the subsidiary company in the previous financial year.

The error was detected during the current financial year and in accordance with the requirement stated in FRS108 Accounting Policies, Changes in Accounting Estimates and Errors, the dividend is now recognised retrospectively and certain comparative figures has been restated as disclosed in Note XX to the financial statements.

Sample Disclosure – Note On Significant Event Subsequent To Balance Sheet Date (8 November 2009)

SIGNIFICANT EVENT SUBSEQUENT TO BALANCE SHEET DATE

On day/month/year, the Company entered into a Sale and Purchase Agreement with a third party for the disposal of a parcel of its land held under the title No. XXXX for a cash consideration of RMX,XXX,XXX. 10% of the disposal price received of RMXXX,XXX is included in Other receivables, deposits and prepayments of the Company as at the end of the financial year. The disposal is expected to be completed by day/month/year.