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Malaysian Financial Reporting Standards 132 WTK Company
According to MFRS 132, the statements of financial position of WTK Company divide into financial asset, financial liability, and financial equity. In the statements of financial position of WTK Company also divide into group and company. WTK Company’s financial assets have non-currents assets and current assets. In non-current assets, there are properly, plant and equipment, prepaid land lease payments, investment properties, and others. For the group, in 1.1.2011, the amount of non-current assets is RM 1020829000 which increased to RM 1099123000 in year end of 2011. In year end of 2012, the non-current assets increased again to RM 141151000. This show that WTK Company’s non-current assets grow from 2011 to 2012. Whereas in company part, the amount of non-current assets in 1.1.2011 is RM 433458000 and go up to RM 434816000 in year end of 2011. In 2012, the non-current assets increase again to RM 438215000. The current assets are inventories, trade and other receivables, other current assets and others. The current assets of WTK Company, in group part, in 1.1.2011, the amount is RM 558683000 then add up to RM 588906000. In 2012, the amount of current assets is RM 551048000. In the company part, the current assets in 1.1.2011 are RM 45304000 grows up to RM 59270000. In 2012, the current assets amount is increase to RM 63501000. Hence, the group part of total amount of assets is RM 1692199000 whereas in the company part of total amount of assets is RM 501716000.
WTK Company has financial liability and financial equity. In financial liability, there are non-current liabilities and current liabilities. In group part, the amount of current liabilities in 1.1.2011 is RM 313731000 which increased to RM 310156000 in year end 2011. In 2012, the amount of current liabilities gains again to RM 242404000. In company part, the amount of current liabilities in 1.1.2011 is RM 51892000 and decrease to RM 45407000 in year end 2011. In 2012, the amount of current liabilities drops again to RM 45070000. The amount of net current asserts/liabilities in group part in 2012 are RM 30644000 whereas in company part 2012, the amount of net current asserts/liabilities are RM 18431000. The non-current liabilities in group part 1.1.2011 are RM 214236000 and increase to RM 1189560000. In 2012, the amount boost again to RM 1220240000. In company part, the non-current liabilities in 1.1.2011 are RM 4265832000 and boost up to RM 448641000. In 2012, the non-current liabilities are RM 456608000. After add with non-controlling interest, RM 15319000, the total equity is RM 1235559000 in 2012 group part. In group part 2012, the total equity and liabilities are RM 1693199000 whereas in company part 2012, the total equity and liabilities are RM 501716000.
The main principle of MFRS 132 is a financial instrument that is not an asset should be confidential as either a financial liability or an equity instrument according to the substance of the contract, but not its official form. The decision to do should be at the time instrument is primarily known. Financial asset and financial liability should be make up for and the net amount reported when, and only when, an entity has a officially enforceable right to offset the amounts and intends either to clear up on a net basis, or to recognize the asset and settle the liability concurrently.
Equity instrument is contract that evidences a residual interest in the assets of an entity after deducting all its liabilities. The statement of changes in equity will reveal all components of equity showing in detail the opening balance, increase and decline and the closing balance. Equity comprises share capital and reserves. Increases and decreases to retained profit not disclosed in the other comprehensive income.
Statements of changes in equity of WTK Company also divide into group and company. In year end of 2012, the group of statements of changes in equity, the total equity is RM 1235559000 whereas in year end of 2011 is RM 1204973000. In year end of 2012, total equity attributable to the owners of the company is RM 1220240000 whereas in year end of 2011, total equity attributable to the owners of the company is RM 1189560000. The shares capital, shares premium, and treasury shares are RM 219007000, RM 45708000, and negative RM 7570000 respectively in year end of 2011. In year end of 2012, the shares capital and shares premium are the same as in 2011. The treasury shares are negative RM 8062000. The retained earnings in 2011 are RM 931358000 whereas in 2012, the retained earnings are RM 962176000. In 2011, total other reserves, foreign currency translation reserve, fair value adjustment reserve, and non-controlling interests are RM1057000, RM 685000, RM372000, and RM 15413000 respectively. Total other reserves, foreign currency translation reserve, fair value adjustment, and non-controlling interests are RM 1411000, RM 1299000, RM 112000, and RM 15319000 respectively in 2012.
In company part, the total equity in 2011 is RM 448641000 whereas the total equity is RM 456608000 in 2012. The shares capital, shares premium, and treasury shares in 2011 are RM 209007000, RM 45708000, and negative RM 7570000. In 2012, the shares capital and shares premium are the same as in 2011. The treasury shares are negative RM8062000. The retained earnings in 2011 are RM 190579000 whereas in 2012 are RM 199445000. Total other reserves, capital reserve, and fair value adjustment are RM 917000, RM 400000, and RM 517000 respectively in 2011. In 2012, total other reserves, capital reserve, and fair value adjustment reserve are RM 510000, RM 400000, and RM 110000 respectively.
Gains such as revaluation surplus and adjust in fair value of financial assets available for sale are recognized in other comprehensive income and disclosed discretely as reserves. Revaluation surplus on depreciable non-current asset is known in other comprehensive income and accredited to the revaluation reserve. The depreciation charge succeeding to the fair value adjustment of the asset will be higher, and an amount equal to the additional depreciation is to be transferred from the revaluation reserve to retained earnings. If the asset were to be sold before it was fully depreciated, the remaining balance on the revaluation for that meticulous asset is also transferred to retained earnings. Interest, dividends, gains and losses linking to an instrument classified as liability should be reported in the income statement. This means that dividends payments on preferred shares classified as liabilities are treated as expenses. On the other hands, distributions such as dividends to proprietor of a financial instrument classified as equity should be charge directly aligned with equity. The expenditure of an entity’s own equity instrument that is has required treasured shares is deducted from equity. Gain or loss is not recognized on the purchase, sale, issue or annulment of treasury shares.