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AXP-MPERS - Illustrative Financial Statements
AXP-MPERS - Illustrative Financial Statements
AXP-MPERS - Illustrative Financial Statements
AXP
Technical
Publications
Copyright © 2014. All rights reserved. AXP Solutions Sdn. Bhd. (Co. no. 693866-X) Printed in Malaysia
FOREWORD
Since 2007, AXP has issued several sets of Model Financial Statements for Malaysia, Singapore and Hong Kong markets
that conform to local reporting standards and received encouraging responses from customers and other Audit
Practitioners.
As part of our mission to assist audit practitioners to resolve contemporary issues, we have prepared the Illustrative
Financial Statements for Malaysian Private Entities Reporting Standard 2014 (“IFS for MPERS 2014”) aiming to
assist our existing clients and other audit practitioners to audit, and companies to prepare, financial statements that are
in compliance with the prevailing financial reporting and disclosure requirements of the Malaysian Private Entities
Reporting Standard (“MPERS”).
In addition to this IFS for MPERS 2014 [English and Malay versions], AXP has also prepared the Illustrative Financial
Statements for:
Malaysia:
1. Malaysian Private Entities Reporting Standard 2014 – Property Development Activities (MPERS 2014 – PDA)
[English and Malay versions]
2. Malaysian Financial Reporting Standards 2012 (MFRS 2012) [English and Malay versions]
3. Financial Reporting Standards 2012 (FRS 2012) for Transitioning Entities [English and Malay versions]
4. Financial Reporting Standards 2010 (FRS 2010) [English and Malay versions]
5. Financial Reporting Standard for Small and Medium-sized Entities (based on ED 72 FRS for SMEs)
6. Private Entity Reporting Standards 2009 (PERS 2009) [English and Malay versions]
International:
7. International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) [English and
Chinese versions]
Singapore:
8. Singapore Financial Reporting Standard for Small Entities (SFRS for Small Entities)
Hong Kong:
9. Hong Kong Financial Reporting Standard for Private Entities (HKFRS for Private Entities) [English and Chinese
versions]
10. Hong Kong Small and Medium-sized Entity Financial Reporting Standard (SME-FRS) [English and Chinese versions]
Our IFS for MPERS 2014 provides various alternative presentation and disclosure requirements for the MPERS’ Sections
indicated in the scope below.
Our IFS for MPERS 2014 is based on the financial statements of a hypothetic group of companies, called Illustrative
Group (MPERS) Sdn. Bhd. and its subsidiaries, for the financial year ending 31 December 2016. We trust that you will
find our IFS for MPERS 2014 a useful reference point when you are auditing or preparing 2016 financial statements.
While every effort has been made to ensure that our IFS for MPERS 2014 demonstrates all the possible disclosure and
presentation requirements of the MPERS, it should not be used as a substitute for the laws, regulations and existing
body of MPERS. However, should you have any questions on the application of any of the statutory and financial
reporting requirements not presented in our IFS for MPERS 2014, you are welcomed to contact our Technical
Publications Unit for assistance.
i
REFERENCES IN OUR IFS FOR MPERS 2014
To the left of each disclosure and presentation item, requirements under the MPERS are shown with “MPERS”. Where
there are alternative applications allowed under the MPERS, we have also presented the alternative disclosures
throughout our IFS for MPERS 2014 for your reference.
All private entities have the option to apply in its entirety either:
(a) the Malaysian Private Entities Reporting Standard (MPERS); or
(b) the Malaysian Financial Reporting Standards (MFRSs).
For entities that opted for (a), they shall apply the MPERS for its financial statements beginning on or after 1 January
2016.
Our IFS for MPERS 2014 covers the following sections in the MPERS issued by the Malaysian Accounting Standards
Board in 2014:
Sections Descriptions
1 Private Entities
2 Concepts and Pervasive Principles
3 Financial Statement Presentation
4 Statement of Financial Position
5 Statement of Comprehensive Income and Income Statement
6 Statement of Changes in Equity and Statement of Income and Retained Earnings
7 Statement of Cash Flows
8 Notes to the Financial Statements
9 Consolidated and Separate Financial Statements
10 Accounting Policies, Estimates and Errors
11 Basic Financial Instruments
13 Inventories
14 Investments in Associates
15 Investments in Joint Ventures
16 Investment Property
17 Property, Plant and Equipment
18 Intangible Assets other than Goodwill
19 Business Combinations and Goodwill
20 Leases
21 Provisions and Contingencies
22 Liabilities and Equity
23 Revenue
24 Government Grants
25 Borrowing Costs
26 Share-based Payment
27 Impairment of Assets
28 Employee Benefits
29 Income Tax
30 Foreign Currency Translation
32 Events after the End of the Reporting Period
33 Related Party Disclosures
34 Specialised Activities (for agriculture and service concession arrangements)
35 Transition to the MPERS
ii
However, our IFS for MPERS 2014 does not include the disclosure and presentation requirements of:
Sections Descriptions
AXP has exercised professional due care and diligence in the preparation of our IFS for MPERS 2014. However, the
information contained herein is intended to be a general guide. While every effort has been made to ensure accuracy,
no liability is accepted by AXP or any member of AXP on any grounds whatsoever to any party in respect of any errors
or omissions, or any action or omission to act as a result of the information contained in our IFS for MPERS 2014.
ABOUT AXP
AXP was formed in 2005 by a team of qualified accountants with years of extensive experience in both the public
practice and commercial sector. Through extensive research and development since 2001 under both its predecessor
and AXP, we have successfully developed in-house a wide range of IT tools and solutions for audit practitioners.
Besides being able to optimise the business value of IT in the audit practice, our products also possess enhanced
features and updates that are in full compliance with the requirements of the prevailing FRS. For more information on
AXP, please visit us at www.myAXP.com or contact us at publications@myAXP.com.
The editorial team consists of both AXP’s Technical Adviser and Business Partners, who jointly possess a wealth of
experience in financial reporting and wide exposure to the accounting industry in general. The profile of each team
member is as follows:
Keith Farmer, FCA, B.A., Technical Adviser of AXP, holds an honours degree in Economics and became a Fellow of the
Institute Chartered of Accountants in England and Wales (“ICAEW”) in January 1983. He taught in London at the
London School of Accountancy and Emile Woolf College and at the University of Essex until he came to Asia in early
1994. He has been based in Asia ever since.
His specialist subject is Financial Accounting. He has conducted courses for both students and practitioners in many
parts of the world, including the UK, Malaysia, Singapore, Hong Kong, Kenya, and Mauritius for both private colleges
and the Association of Chartered Certified Accountants (“ACCA”). His students have consistently won numerous prizes
in the ACCA examinations.
Whilst Keith is justifiably proud of individual student performance, his key aim is to convey a fundamental
understanding of the basic principles and concepts which underlie financial accounting and a detailed knowledge and
application of the requirements of accounting standards. This is based on the three core principles of education:
instruction, demonstration and experience. Understanding is important, in fact it is a prerequisite to developing the
level of knowledge required to sit examinations with confidence and inspires individuals to achieve far more than they
ever expected in far less time than they ever anticipated.
In furtherance of achieving his aim, Keith has recently embarked upon a three point strategy. Firstly, he is writing a
series of books, primarily aimed at students, covering consolidation and accounting standards which contain numerous
progressive worked examples. Secondly, he is currently engaged in developing a series of DVD's which, together with
the books, will form an integral part of a new co-ordinated learning package. Finally, in the near future, this learning
package will be extended to a structured continuing professional development programme.
1
Property development activities will be illustrated under IFS for MPERS 2014 - PDA
iii
Ivan Er Soon Lock, C.A.(M), FCCA, B.Com(NZ), is a member of the Malaysian Institute of Accountants (“MIA”) and a
fellow member of ACCA. Ivan first joined Deloitte in 1997 as an Audit Assistant, and subsequently became an Audit
Manager. He left Deloitte in 2003 to join Horwath, another international public practice. At Horwath, he was soon
promoted to become an Audit Principal. In 2005, he left Horwath to join AXP.
His experience includes managing the audit and the corporate finance functions and the setting up of the business
improvement division of the practice, assisting companies listing on the stock exchange by providing consultancy
services on listing exercise and financial management, advising on good accounting and internal control systems to a
wide range of companies, provision of technical training on financial reporting standards and conducting due-diligence
review on companies in Malaysia and China. Currently, he is involved in conducting financial reporting courses for
internal and external parties.
Eric Chia Kok Haur, C.A.(M), C.A.(NZ), B.Com(Hons), is a member of the MIA and New Zealand Institute of Chartered
Accountants (“NZICA”). Eric started his career as an Audit Assistant with Deloitte in 1997. He was an Assistant Audit
Manager when he left the firm to join KPMG Singapore in 2000. He was also an Assistant Audit Manager at KPMG,
where he served until 2003. From KPMG, he moved on to H W Kuah & Co., another public practice in Singapore, as the
Audit Manager. In 2005, he left H W Kuah & Co. to join AXP.
Eric is well-versed with the financial reporting environment of both Malaysia and Singapore. In addition, as he has
spearheaded major audit assignments in China, he is also familiar with China financial reporting requirements. His
experience includes managing audit and due diligence assignments, monitoring the budgetary function of the practice,
provision of advisory services for corporate exercises and corporate governance matters, preparation and review of
published financial statements, including those of significantly large groups of companies, and conducting training on
technical subjects.
Kua Le Ting, C.A.(M), FCCA, is a member of the MIA and a fellow member of ACCA. Ms. Kua joined Deloitte in 1995 as
an audit assistant and was soon promoted to become an audit senior. She was in-charge of the managing and
supervising of audit engagements ranging from small to big multinational companies. To further enhance her
experience, she then joined the tax department of Deloitte, where she was involved in tax planning and consultancy
services, in addition to preparing tax returns for both corporate and individual clients.
She left the public practice in 1999 to set up her own consultancy business, LT Kua Consultation Services, specialising in
personal financial planning and risk management planning. In addition, Ms. Kua is also involved in the preparation of
various study materials for professional courses used in institutions of higher learning.
Vicky Chuar Xin Peng, B.Com.(Hons), graduated in May 2007 and soon started her career in CPA Group as an Audit
Assistant. Then she moved on to join BDO Binder while pursuing her study for the ACCA qualification, professional
level. She was a Senior Associate when she left BDO Binder to join AXP in 2010 as Consultant (Customer support and
technical research).
iv
CONTACT US
Central Malaysia
A-3-03 & A-3-05, SME Technopreneur Centre 2 Cyberjaya, 2260, Jalan Usahawan 1, 63000 Cyberjaya, Selangor,
Malaysia.
Tel: 1300.882.297 or 603.8318.8297
Fax: 603.8318.9297
Singapore
Blk 5000, Ang Mo Kio Ave 5, #03-09, TechPlace II, Singapore 569870.
Tel: 65.6876.7297
Fax: 65.6853.1965
Hong Kong
Level 8, Admiralty Centre Tower II, 18 Harcourt Road, Admiralty, Hong Kong
Tel: 852.5808.5697
Fax: 800.905.397
publications@myAXP.com
Copyright © 2007 - 2014. All rights reserved. AXP Solutions Sdn. Bhd.
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means,
electronic, mechanical, photocopying, recording, scanning, or otherwise without the prior written permission of AXP.
However, written permission need not be obtained from AXP if it is used internally within the Firm.
v
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
TABLE OF CONTENTS
Page
No.
Statutory Declaration 7
Financial Statements 1
Statements of Financial Position 10 – 11
Statements of Comprehensive Income – Expenses Classified by Function 12
vi
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Page
No.
Additional Notes:
Change of the End of the Reporting Period 77
Presentation of First Set of Financial Statements 77
Presentation of First Set of Group Financial Statements 77
vii
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
1. In accordance with:
Paragraph 3.21: In a complete set of financial statements, an entity shall present each financial statement
with equal prominence.
Paragraph 3.22: An entity may use titles for the financial statements other than those used in the MPERS as
long as they are not misleading.
Paragraph 9.25: In this illustrative financial statements, the entity elects to present separate financial
statements.
2. These statements are prepared in accordance with Section 3.18 for illustration purpose only and do not form
part of the financial statements of Illustrative Group (MPERS) Sdn. Bhd..
3. A parent need not present consolidated financial statements if it met the conditions of Section 9.3, as follows:
4. In accordance with 9.3AA, notwithstanding paragraph 9.3, the ultimate Malaysian parent shall present
consolidated financial statements that consolidate its investments in subsidiaries in accordance with MPERS
when either the parent or the group is a reporting entity or both the parent and the group are reporting entities.
viii
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
CA Ref.
The directors hereby submit their report together with the audited financial statements of the Group and
the Company for the financial year ended 31 December 2016.
169(6)(c) RESULTS
The Group The Company
RM RM
Profit for the financial year attributable to owners of the parent 7,419,143 166,886
169(6)(p) In the opinion of the directors, the results of the operations of the Group and the Company during the
financial year have not been substantially affected by any item, transaction or event of a material and
unusual nature.
169(6)(h) DIVIDENDS
On 1 April 2016, the Company paid a 10% final tax exempt dividend (total dividend of RM1,105,020) in
respect of the previous financial year. The net dividend per share was 10 sen.
On 31 August 2016, the directors declared a 10% interim tax exempt dividend (total dividend of
RM1,132,020) in respect of the current financial year. The dividend was paid to the shareholders registered
on 31 October 2016. The net dividend per share was 10 sen.
The directors have proposed a 10% final tax exempt dividend in respect of the current financial year. The
dividend is subject to approval by the shareholders at the forthcoming Annual General Meeting and has
not been included as a liability in the financial statements. Total dividend payable is RM1,122,020 (dividend
for treasury shares is not included), and the net dividend per share is 10 sen.
1
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
CA Ref.
169(6)(e) SHARES AND DEBENTURES
During the financial year, the authorised ordinary share capital of the Company has been increased by
10,000,000 ordinary shares to 50,000,000 ordinary shares of RM1.00 each.
During the financial year, the Company has issued the following ordinary shares:
The new ordinary shares issued rank pari passu in respect of the distribution of dividends and repayment of
capital with the existing ordinary shares.
Details of the debentures issued during the financial year are set out in Note 29 and 30.
The details of the ESOS are contained in the By-Laws and the salient features of ESOS are disclosed in Note
33 to the Financial Statements.
The Company has obtained approval from the Companies Commission of Malaysia for the exemption from
disclosing the name of the option holders as at 31 December 2016.
2
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
No shares have been issued during the financial year by virtue of the exercise of any option to take up
unissued shares of the Company. At the end of the financial year, there were no unissued shares of the
Company under options.
169(6)(a) DIRECTORS
The directors who held office since the date of the last report are:
Ser L. T.
Lian K. K.
Mohd. bin R. Z.
Gi J. Q.
Ran H. P.
Hija bin B. T.
Yan D. V.
Wen M. X.
The L. P. (Appointed on 1 July 2016)
DIRECTORS’ BENEFITS
169(6)(f) During and at the end of the financial year, no arrangements subsisted to which the Company or its
subsidiaries is a party, with the object or objects of enabling directors of the Company to acquire benefits
by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.
169(8) Since the end of the previous financial year, no director has received or become entitled to receive a
benefit (other than a benefit included in the aggregate amount of emoluments received or due and
receivable by the directors shown in the financial statements or the fixed salary of a full-time employee of
the Company) by reason of a contract made by the Company or a related corporation with the director or
with a firm of which the director is a member, or with a company in which the director has a substantial
financial interest.
3
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
By virtue of the abovementioned directors’ interests in the Company, these directors are also deemed to
have interests in the subsidiaries of the Company to the extent of the Company’s interests in the
subsidiaries.
None of the other directors in office at the end of the financial year held any shares in the Company or in
any related corporations during the financial year ended 31 December 2016.
4
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
169(6)(k) (b) to ensure that any current assets which were unlikely to be realised at their book values in the
ordinary course of business have been written down to their estimated realisable values.
As of the date of this report, the directors are not aware of any circumstances:
169(6)(j) (a) which would render the amount written off for bad debts or the amount of the allowance for
doubtful debts inadequate to any substantial extent in the financial statements of the Group and
the Company; or
169(6)(l) (b) which would render the values attributed to current assets in the financial statements of the Group
(i) and the Company misleading; or
169(6)(l) (c) which have arisen which render adherence to the existing method of valuation of assets or liabilities
(ii) of the Group and the Company misleading or inappropriate; or
169(6)(o) (d) not otherwise dealt with in this report or financial statements which would render any amount
stated in the financial statements of the Group and the Company misleading.
(a) any charge on the assets of the Group and the Company which has arisen since the end of the
financial year and secures the liability of any other person; or
(b) any contingent liability of the Group and the Company which has arisen since the end of the
financial year.
169(6)(n) No contingent or other liability has become enforceable, or is likely to become enforceable within the
period of twelve months after the end of the financial year which, in the opinion of the directors, will or
may substantially affect the ability of the Group and the Company to meet its obligations as and when
they fall due.
169(6)(q) In the opinion of the directors, no item, transaction or event of a material and unusual nature has arisen in
the interval between the end of the financial year and the date of this report which is likely to affect
substantially the results of operations of the Group and the Company for the succeeding financial year.
5
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
AUDITORS
The retiring auditors, Messrs. Auditors & Co., have indicated their willingness to be re-appointed in
accordance with Section 172(2) of the Companies Act, 1965.
Ser L T
Ser L. T.
Lian K K
Lian K. K.
Kuala Lumpur
31 January 2017
6
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
The directors of Illustrative Group (MPERS) Sdn. Bhd. state that, in their opinion, the financial statements
set out in pages 10 to 77 are drawn up in accordance with the provisions of the Companies Act, 1965 and
the Malaysian Private Entities Reporting Standard so as to give a true and fair view of the state of affairs of
the Group and the Company as at 31 December 2016 and of the results of their businesses and the cash
flows of the Group and the Company for the financial year ended on that date.
Ser L T
Ser L. T.
Lian K K
Lian K. K.
Kuala Lumpur
31 January 2017
I, Gi J. Q., the director primarily responsible for the financial management of Illustrative Group (MPERS)
Sdn. Bhd., do solemnly and sincerely declare that the financial statements set out in page 10 to 77 are, in
my opinion, correct and I make this solemn declaration conscientiously believing the same to be true, and
by virtue of the provisions of the Statutory Declarations Act, 1960.
Before me,
______________________________________
COMMISSIONER FOR OATHS
7
Auditors & Co.
[AF-99999]
Chartered Accountants
We have audited the financial statements of Illustrative Group (MPERS) Sdn. Bhd., which comprise the
statements of financial position of the Group and the Company as at 31 December 2016, and the
statements of comprehensive income, changes in equity and cash flows of the Group and the Company
for the financial year then ended, and a summary of significant accounting policies and other explanatory
information, as set out on pages 10 to 77.
The directors of the Company are responsible for the preparation of financial statements so as to give a
true and fair view in accordance with Malaysian Private Entities Reporting Standard and the requirements
of the Companies Act, 1965 in Malaysia. The directors are also responsible for such internal control as
the directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with approved standards on auditing in Malaysia. Those standards
require that we comply with ethical requirements and plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, we consider internal control relevant to the entity’s preparation
of financial statements that give a true and fair view in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the directors, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
8
Auditors & Co.
[AF-99999]
Chartered Accountants
Opinion
174(2)(a) In our opinion, the financial statements give a true and fair view of the financial position of the Group
and the Company as at 31 December 2016 and of their financial performance and cash flows for the
financial year then ended in accordance with Malaysian Private Entities Reporting Standard and the
requirements of the Companies Act, 1965 in Malaysia.
In accordance with the requirements of the Companies Act, 1965 in Malaysia, we also report the
following:
174(2)(b) (a) In our opinion, the accounting and other records and the registers required by the Act to be kept
by the Company and its subsidiaries have been properly kept in accordance with the provisions
of the Act.
174(2)(c)(ii) (b) We have considered the financial statements and the auditors’ reports of all the subsidiaries of
which we have not acted as auditors, which are indicated in Note 9 to the Financial Statements.
174(2)(c)(iii) (c) We are satisfied that the financial statements of the subsidiaries that have been consolidated
with the Company’s financial statements are in form and content appropriate and proper for the
purposes of the preparation of the financial statements of the Group and we have received
satisfactory information and explanations required by us for those purposes.
174(2)(c)(iv) (d) The audit reports on the financial statements of the subsidiaries did not contain any qualification
or any adverse comment made under Section 174(3) of the Act.
Other Matters
This report is made solely to the members of the Company, as a body, in accordance with Section 174 of
the Companies Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any
other person for the content of this report.
Kuala Lumpur
31 January 2017
9
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
CURRENT ASSETS
4.2(i) Biological assets carried at fair value
through profit or loss 14 150,233 100,275 - -
4.2(d) Inventories 15 797,885 669,861 - -
4.2(b) Trade and other receivables 16 2,241,475 1,475,188 5,506,238 5,418,830
23.32(a) Gross amount due from customers for
contract work 101,398 108,183 - -
4.2(c) Other financial assets 12 96,802 155,781 5,068 52,090
4.2(a) Cash and cash equivalents 17 303,930 486,923 262,503 212,589
Total Current Assets 3,691,723 2,996,211 5,773,809 5,683,509
TOTAL ASSETS 31,450,951 24,116,894 20,162,122 18,969,411
10
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
CURRENT LIABILITIES
4.2(l) Trade and other payables 31 1,863,793 1,115,196 330,442 329,113
23.32(b) Gross amount due to customers for
contract work 3,211 1,453 - -
4.2(n) Current tax liabilities 34,598 68,272 1,896 2,463
4.2(p) Provisions 27 163,358 165,268 - -
4.2(m) Finance lease payables 28 56,966 53,476 - -
4.2(a) Bank overdrafts 29 280,316 324,225 36,068 44,396
4.2(m) Other borrowings 29 1,352,517 1,406,744 169,935 138,279
4.11(d) Deferred revenue 32 100,000 100,000 - -
In accordance with Paragraph 4.9, MPERS does not prescribe the sequence or format in which items are to be
presented.
11
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Continuing Operations
5.5(a) Revenue 34 23,743,683 19,326,112 401,818 317,273
5.11(b) Cost of sales (12,966,796) (11,656,606) - -
Discontinued Operations
5.5(e) Profit from discontinued operations 9,086 15,796 - -
5.5(f) Profit For The Financial Year 7,419,143 4,838,871 2,366,886 2,131,489
5.6(b) Total comprehensive income for the financial year attributable to:
Owners of the parent 7,520,602 4,940,732 2,366,886 2,131,489
Non-controlling interests 156,807 129,530 - -
12
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Continuing Operations
5.5(a) Revenue 34 23,743,683 19,326,112 401,818 317,273
Discontinued Operations
5.5(e) Profit from discontinued operations 9,086 15,796 - -
5.5(f) Profit For The Financial Year 7,419,143 4,838,871 2,366,886 2,131,489
5.6(b) Total comprehensive income for the financial year attributable to:
Owners of the parent 7,520,602 4,940,732 2,366,886 2,131,489
Non-controlling interests 156,807 129,530 - -
13
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Discontinued Operations
5.5(e) Profit from discontinued operations 9,086 15,796 - -
5.5(f),5.7 Profit For The Financial Year 7,419,143 4,838,871 2,366,886 2,131,489
14
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
5.7 Profit For The Financial Year 7,419,143 4,838,871 2,366,886 2,131,489
5.6(b) Total comprehensive income for the financial year attributable to:
Owners of the parent 7,520,602 4,940,732 2,366,886 2,131,489
Non-controlling interests 156,807 129,530 - -
15
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
6.3(c) Balance at 1 January 2015 11,045,200 450,000 - - 553,718 454,049 9,000 1,896,959 14,408,926 2,174,916 16,583,842
6.3(a) Total comprehensive income for the financial year - - - - - 231,391 - 4,709,341 4,940,732 129,530 5,070,262
6.3(c) Dividends 37 - - - - - - - (2,209,040) (2,209,040) - (2,209,040)
6.3(c) Issue of ordinary shares 5,000 8,500 - - - - (1,500) - 12,000 - 12,000
6.3(c) Recognition of share-based payments - - - - - - 7,000 - 7,000 - 7,000
6.3(c) Balance at 31 December 2015 11,050,200 458,500 - - 553,718 685,440 14,500 4,397,260 17,159,618 2,304,446 19,464,064
6.3(a) Total comprehensive income for the financial year - - - - - 258,266 - 7,262,336 7,520,602 156,807 7,677,409
6.3(c) Dividends 37 - - - - - - - (2,237,040) (2,237,040) - (2,237,040)
6.3(c) Issue of ordinary shares 270,000 784,000 - - - - (6,000) - 1,048,000 - 1,048,000
6.3(c) Buy-back of ordinary shares - - (500,000) - - - - - (500,000) - (500,000)
6.3(c) Issue of ICULS - - - 29,810 - - - - 29,810 - 29,810
6.3(c) Recognition of share-based payments - - - - - - 17,000 - 17,000 - 17,000
6.3(c) Balance at 31 December 2016 11,320,200 1,242,500 (500,000) 29,810 553,718 943,706 25,500 9,422,556 23,037,990 2,461,253 25,499,243
16
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
6.3(c) Balance at 1 January 2015 11,045,200 450,000 - - 12,500 9,000 6,850,420 18,367,120
17
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Discontinued Operations
5.5(e) Profit from discontinued operations 9,086 15,796 - -
5.5(f) Profit For The Financial Year 7,419,143 4,838,871 2,366,886 2,131,489
Retained earnings at the beginning of
6.5(a) the financial year 4,397,260 1,896,959 6,772,869 6,850,420
6.5(b) Dividends 37 (2,237,040) (2,209,040) (2,237,040) (2,209,040)
Restatements of retained earnings for
6.5(c) corrections of prior period errors * xxxxx xxxxx xxxxx xxxxx
Restatements of retained earnings for
6.5(d) changes in accounting policy * xxxxx xxxxx xxxxx xxxxx
Retained Earnings At The End Of The
6.5(e) Financial Year xxxxx xxxxx xxxxx xxxxx
18
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
This statement is prepared for illustration of prior period adjustment and change in accounting policy purpose
only, hence shown as “xxxxx”. Therefore, to avoid confusion, all following figures are shown as “xxxxx” also.
Note: As permitted by Paragraph 3.18, the above statement illustrated the format of statement of income and retained
earnings in place of a statement of comprehensive income and statement of changes in equity when the only
changes to its equity during the financial period arose from:
• profit or loss,
• dividends,
• corrections of prior period errors, and
• changes in accounting policy.
19
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Continuing Operations
5.5(a) Revenue 34 23,743,683 19,326,112 401,818 317,273
Discontinued Operations
5.5(e) Profit from discontinued operations 9,086 15,796 - -
5.5(f) Profit For The Financial Year 7,419,143 4,838,871 2,366,886 2,131,489
Retained earnings at the beginning of
6.5(a) the financial year 4,397,260 1,896,959 6,772,869 6,850,420
6.5(b) Dividends 37 (2,237,040) (2,209,040) (2,237,040) (2,209,040)
Restatements of retained earnings for
6.5(c) corrections of prior period errors * xxxxx xxxxx xxxxx xxxxx
Restatements of retained earnings for
6.5(d) changes in accounting policy * xxxxx xxxxx xxxxx xxxxx
Retained Earnings At The End Of
6.5(e) The Financial Year xxxxx xxxxx xxxxx xxxxx
20
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
This statement is prepared for illustration of prior period adjustment and change in accounting policy purpose
only, hence shown as “xxxxx”. Therefore, to avoid confusion, all following figures are shown as “xxxxx” also.
Note: As permitted by Paragraph 3.18, the above statement illustrated the format of statement of income and retained
earnings in place of a statement of comprehensive income and statement of changes in equity when the only
changes to its equity during the financial period arose from:
• profit or loss,
• dividends,
• corrections of prior period errors, and
• changes in accounting policy.
21
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Operating profit before changes in working capital 9,915,706 7,087,613 514,770 181,927
7.8(a) (Increase)/Decrease in biological assets (65,288) (40,189) - -
7.8(a) Increase in inventories (157,254) (104,831) - -
7.8(a) Increase in trade and other receivables (1,372,500) (486,903) (87,408) (40,562)
7.8(a) Increase/(decrease) in trade and other payables 1,101,513 403,182 1,329 1,493
22
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Net cash (used in)/from investing activities (5,201,615) (2,973,816) 1,873,202 1,946,174
Net (decrease)/increase in cash and cash equivalents (139,041) 27,608 58,242 (128,756)
Cash and cash equivalents at beginning of financial year 159,547 131,939 168,193 296,949
Cash and cash equivalents at end of financial year 17 20,506 159,547 226,435 168,193
23
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Net cash (used in)/from investing activities (5,201,615) (2,973,816) 1,873,202 1,946,174
Net (decrease)/increase in cash and cash equivalents (139,041) 27,608 58,242 (128,756)
Cash and cash equivalents at beginning of financial year 159,547 131,939 168,193 296,949
Cash and cash equivalents at end of financial year 17 20,506 159,547 226,435 168,193
24
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
1. GENERAL INFORMATION
3.24(a) The Company is a private limited company domiciled and incorporated in Malaysia. The registered office
and principal place of business is located at 83A, Jalan Emas 1, Taman Sri Skudai, 81300 Johor Bahru, Johor.
3.24(b) The principal activities of the Company are that of investment holding and provision of management
services to its subsidiaries. The Group is principally engaged in investment holding, research and
development, property investment, construction activities, rending of concession services, and agriculture
products. There have been no significant changes in the nature of the activities during the financial year.
33.5 The Company is a subsidiary of Be Competent Sdn. Bhd., a company incorporated in Malaysia, which is also
regarded by the directors as the ultimate holding company.
30.2, 30.26 The financial statements of each entity in the Group are presented in the functional currency, which is the
currency of the primary economic environment in which the entities operate.
30.2 The functional currency of the Company is Ringgit Malaysia (‘RM’) as the sales and purchases are mainly
denominated in RM, receipts from operations are usually retained in RM and funds from financing activities
are mainly generated in RM.
For the purpose of the consolidated financial statements, the financial statements of each entity within the
Group are expressed in RM, which is the functional currency of the Company, and the presentation currency
for the consolidated financial statements.
25
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
Basis of Preparation
8.5(a)
The financial statements have been prepared on the historical cost basis, except for the revaluation of
certain assets and liabilities.
Basis of Consolidation
9.2 The consolidated financial statements incorporate the financial statements of the parent and all subsidiaries.
9.4 Subsidiaries are entities controlled by the parent. Control exists when the parent has the power to govern
the financial and operating policies of an entity so as to obtain benefits from its activities.
9.26, Investment in subsidiaries are accounted for in the Company’s separate financial statements at cost less any
9.27(b) accumulated impairment losses.
9.18 The income and expenses of a subsidiary are included in the consolidated financial statements from the
acquisition date until the date on which the parent ceases to control the subsidiary. Any difference between
the proceeds from the disposal of a subsidiary and the carrying amount as at the date of disposal, excluding
the cumulative amount of any exchange differences that relate to a foreign subsidiary recognised in equity,
is recognised in the consolidated statement of comprehensive income as gain or loss on the disposal of the
subsidiary.
9.17 Consolidated financial statements are prepared using uniform accounting policies for like transactions and
other events and conditions in similar circumstances.
9.20 Non-controlling interests are presented in the consolidated statement of financial position within equity,
9.21 separately from the equity of the owners of the parent. Non-controlling interests are also separately
disclosed in the consolidated statement of comprehensive income.
9.15 All intragroup balances, transactions, including income and expenses are eliminated in full.
Business Combinations
19.6 Business combinations are accounted for by applying the purchase method. The cost of a business
19.11 combination is measured at the aggregate of the fair values, at the date of exchange, of assets given,
liabilities incurred or assumed, and equity instruments issued by the Group, in exchange for control of the
acquiree, plus any costs directly attributable to the business combination.
19.14 At the acquisition date, the Group allocates the cost of a business combination by recognising the
acquiree’s identifiable assets, liabilities and contingent liabilities at their fair values. Any excess of the cost of
the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities
and contingent liabilities is recorded as goodwill.
19.24(a) If, after reassessment, the Group’s interest in the net fair value of the identifiable assets, liabilities and
contingent liabilities recognised exceeds the cost of the business combination, the excess is recognised
immediately in profit or loss.
26
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
22.19 In the consolidated financial statements, non-controlling interest in the net assets of a subsidiary is included
in equity. The Group treats changes in parent’s controlling interest in a subsidiary that does not result in a
loss of control as transactions with equity holders in their capacity as equity holders. Accordingly, the
carrying amount of the non-controlling interest is adjusted to reflect the change in the parent’s interest in
the subsidiary’s net assets. Any difference between the amount by which the non-controlling interest is so
adjusted and the fair value of the consideration paid or received, if any, are recognised directly in equity and
attributed to equity holders of the parent. A gain or loss on these changes and the change in the carrying
amounts of assets (including goodwill) or liabilities as a result of such transactions is not recognised.
17.31(b) Except for freehold land and properties under construction which are not depreciated, depreciation is
provided on a straight-line method so as to write off the depreciable amount of the following assets over
their estimated useful lives, as follows:
17.20 Depreciation of an asset begins when it is ready for its intended use.
17.19 If there is an indication of a significant change in factors affecting the residual value, useful life or asset
17.23 consumption pattern since the last annual reporting date, the residual values, depreciation method and
useful lives of depreciable assets are reviewed, and adjusted prospectively.
17.27 The carrying amounts of items of property, plant and equipment are derecognised on disposal or when no
future economic benefits are expected from their use or disposal. Any gain or loss arising from the
17.30 derecognition of items of property, plant and equipment, determined as the difference between the net
17.28 disposal proceeds, if any, and the carrying amounts of the item, is recognised in profit or loss. Neither the
sale proceeds nor any gain on disposal is classified as revenue.
Investment Property
16.2 Investment property which is held to earn rentals or for capital appreciation or both, is measured initially at
16.5
its cost. Transaction costs are included in the initial measurement.
16.7 After recognition as investment property, items of investment property whose fair value can be measured
reliably without undue cost or effort are measured at fair value at each reporting date with changes in fair
value recognised in profit or loss.
16.3 Property interests held under operating leases are not classified and accounted for as investment property.
27
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
16.8 If a reliable measure of fair value is no longer available without undue cost or effort for an item of
investment property measured at fair value, it is thereafter account for as property, plant and equipment in
accordance with Section 17 of the MPERS. The carrying amount of the investment property on that date
becomes its cost.
Goodwill
19.22 Goodwill acquired in a business combination, being the excess of the cost of the business combination over
the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities
19.23 recognised, is initially measured at cost and recognised as an asset. After initial recognition, goodwill is
measured at cost less any accumulated amortisation and any accumulated impairment losses.
19.23 Goodwill amortisation is calculated by applying the straight-line method over its estimated useful life. The
estimated useful life of goodwill is 10 years.
27.25 For the purpose of impairment testing, goodwill is allocated, at the acquisition date, to each of the Group’s
cash-generating units that are expected to benefit from the synergies of the combination, irrespective of
whether other assets or liabilities of the acquiree are assigned to those units. A cash-generating unit to
which goodwill has been allocated is tested for impairment annually, and whenever there is an indication
that the unit may be impaired, by comparing the carrying amount of the unit, including the goodwill, with
27.21 the recoverable amount of the unit. An impairment loss is recognised for a cash-generating unit when the
recoverable amount of the unit is less than the carrying amount of the unit. Any impairment loss
recognised is firstly allocated to reduce the carrying amount of any goodwill allocated to the unit and then,
to the other non-current assets of the unit pro rata on the basis of the carrying amount of each applicable
27.28 asset in the unit. Any impairment loss recognised for goodwill is not reversed in a subsequent period.
28
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
9.27(b) Investment in associates, other than those for which there is a published price quotation, are accounted for
in the Company’s separate financial statements at cost less any accumulated impairment losses.
14.8(i) Investment in associates are accounted for in the Group’s consolidated financial statements using the equity
method until the date the Group ceases to have significant influence over the associates.
14.8 Under the equity method, investment in associates are initially recognised at the transaction price, including
transaction costs, and is subsequently adjusted to reflect the Group’s share of the profit or loss and other
14.8(h) comprehensive income of the associates after the date of acquisition. If the Group’s share of losses of an
associate equals or exceeds the carrying amount of its investment in the associates, the Group discontinued
recognising the share of further losses.
14.8(c) On acquisition of the investment in an associate, the Group accounts for the difference between the cost of
acquisition and the Group’s share of the fair values of the net identifiable assets of the assets in accordance
with policy of recognising “goodwill”. Share of the associate’s profits or losses after acquisition is adjusted
to account for additional depreciation or amortisation of the associate’s depreciation or amortisable assets,
including goodwill, on the basis of the excess of their fair values over their carrying amounts at acquisition
date.
14.8(d) If there is an indication that an investment in an associate may be impaired, the Group test the entire
carrying amount of the investment for impairment as a single asset. Any goodwill included as part of the
carrying amount of the investment in the associate is not tested separately for impairment but, as part of
the test for impairment of the investment as a whole.
14.8(e) Unrealised profits or losses on transactions entered into between the Group and associates are eliminated
to the extent of the Group’s interest in the associates.
14.10 Investments in associates are subsequently measured at fair value, with changes in fair value recognised in
profit or loss, at each reporting date. They are measured at cost less any accumulated impairment losses
when it is impracticable to measure fair value reliably without undue cost or effort.
Cost model
14.5 Investment in associates, other than those for which there is a published price quotation, are measured at
14.6
cost less any accumulated impairment losses. Dividends and other distributions received from the
investment are recognised as income without regard to whether the distributions are from accumulated
profits of the associate arising before or after the date of acquisition.
29
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
15.14 Investments in jointly controlled entities are measured at transaction price excluding transaction costs at
initial recognition.
Investments in jointly controlled entities are subsequently measured at fair value, with changes in fair value
15.15
recognised in profit or loss, at each reporting date. They are measured at cost less any accumulated
impairment losses when it is impracticable to measure fair value reliably without undue cost or effort.
For the alternative measurement basis allowed for the investments in jointly-controlled entities,
equity model and cost/cash model, please refer to the investments for associates for reference.
27.8 When there is an indication that an asset may be impaired but it is not possible to estimate the recoverable
amount of the individual asset, the Group and the Company estimate the recoverable amount of the cash-
generating unit to which the asset belongs.
27.11 The recoverable amount of an asset and a cash-generating unit is the higher of the fair value less costs to
27.20 sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset.
27.5 If the recoverable amount of an asset or a cash-generating unit is less than the carrying amount, an
27.21 impairment loss is recognised to reduce the carrying amount to its recoverable amount. An impairment loss
for a cash-generating unit is firstly allocated to reduce the carrying amount of any goodwill allocated to the
cash-generating unit, and then, to the other non-current assets of the unit pro rata on the basis of the
27.6 carrying amount of each appropriate asset in the cash-generating unit. Impairment loss is recognised
immediately in profit or loss.
27.22 The recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less to sell, value in
use and zero.
27.30(b),(c) An impairment loss recognised in prior periods for an asset or the appropriate assets of a cash-generating
unit is reversed when there has been a change in the estimates used to determine the asset’s recoverable
27.31(c) amount. An impairment loss is reversed to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation, if no impairment loss had been
recognised in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.
30
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
30.9 At the end of each reporting period, foreign currency monetary items are translated using the closing rate.
Non-monetary items that are measured at historical cost in a foreign currency are translated using the
exchange rates at the date of the transactions. Non-monetary items that are measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was determined.
30.10 Exchange differences are recognised in profit or loss in the period in which they arise except when a gain or
30.11 loss on a non-monetary item is recognised in other comprehensive income. If so, any exchange differences
relating to that gain or loss is recognised in other comprehensive income.
Biological Assets
34.2(a),34.4 Biological assets for which fair value is readily determinable without undue cost or effort are recognised at
fair value less costs to sell on initial recognition and at each reporting date. Changes in fair value less costs
to sell are recognised in profit or loss.
34.7(b)
Fair values are determined based on present value of the estimated cash flows relating to the biological
assets by applying assumptions made by the independent valuer. The valuer makes use of the
measurements of plants and confirms model assumptions and growth trends.
34.5 At the point of harvest, the agricultural produce harvested are recognised at fair value less costs to sell.
13.22(a) Inventories
13.4 Inventories are measured at the lower of cost and estimated selling price less costs to complete and sell.
13.5
Cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing
13.18 the inventories to their present location and condition. Cost of inventories is measured by using the First-in
First-out method.
31
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
13.19, 27.2 At each reporting date, inventories are assessed for impairment. If an item of inventory is impaired, the
carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is
27.4 recognised immediately in profit or loss. At each subsequent reporting date, the Group and the Company
make a new assessment of selling price less costs to complete and sell. If there is any indication that an
impairment loss recognised in prior periods may no longer exist or when there is clear evidence of an
increase in selling price less costs to complete and sell due to changed economic circumstances, an
impairment loss is reversed to the extent that the new carrying amount is the lower of the cost and the
revised selling price less costs to complete and sell.
Share-based Payments
26.5 The Group operates an equity-settled share-based payments scheme to allow the employees of the Group
to acquire ordinary shares of the Company. The fair value of the options granted is recognised as
employees benefit expenses with a corresponding credit to equity-settled employee benefits reserves. The
fair value determined at the grant date is expensed in profit or loss in accordance with Section 26 Share-
based Payment over the periods during which the employees become unconditionally entitled to the
options, based on the Group’s estimate of the ordinary shares that will eventually vest, and adjusted for the
effect of non market-based vesting conditions.
At each reporting date, the Group revises the estimates of the number of options that are expected to
become exercisable, and recognises the impact of the revision of the original estimates in employees
benefit expenses and in a corresponding credit to equity-settled employee benefits reserves over the
remaining vesting period.
If the entity has cash-settled share-based payment transactions, disclose the following accounting
policy:
26.14 The Group and the Company also incurred cash-settled share-based payment transactions. The liabilities
incurred are measured at fair value. At each reporting date and at the date of settlement, the fair values
were re-measured with any changes in fair value recognised in profit or loss for the period.
Provisions
21.4 A provision is recognised when the Group and the Company have an obligation at the reporting date as a
result of a past event, it is probable that a transfer of economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
21.7 The risks and uncertainties are taken into account in reaching the best estimate of a provision. When the
effect of the time value of money is material, the amount recognised in respect of the provision is the
present value of the expenditure expected to be required to settle the obligation.
Leases – as lessee
i) Finance Leases
20.4 Leases of property, plant and equipment are classified as finance lease where substantially all the risks and
benefits incidental to the ownership of the assets, but not the legal ownership, are transferred to the Group
and the Company.
20.9 The Group and the Company initially recognise its rights of use and obligations under finance leases as
assets and liabilities in the statements of financial position at amounts equal to the fair value of the leased
assets or, if lower, the present value of the minimum lease payments, determined at the inception of the
leases. Any initial direct costs are added to the amount recognised as an asset.
32
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
20.11 Minimum lease payments are apportioned between the finance charge and the reduction of the
outstanding liability using the effective interest method. A finance charge is allocated to each period during
the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Contingent rents are charged as an expense in the period in which they are incurred.
20.12 The depreciation policy for depreciable leased assets is consistent with that of depreciable assets that are
owned. If there is no reasonable certainty that the Group and the Company will obtained ownership by the
end of the lease term, the leased assets are fully depreciated over the shorter of the lease terms and their
useful life. At each reporting date, the Group and the Company assess whether the assets leased under the
finance lease are impaired.
Government Grants
24.4 Government grants that do not impose specified future performance conditions are measured at the fair
24.5
value of the assets received or receivable and recognised in income when the grant proceeds are receivable.
Government grants that impose specified future performance conditions are recognised at their fair value in
income only when the performance conditions are met.
Government grants received before the revenue recognition criteria are satisfied are recognised as a liability.
11.13 On initial recognition, financial assets are measured at transaction price, include transaction costs for
financial assets not measured at fair value through profit or loss, unless the arrangement constitutes, in
effect, a financing transaction.
11.41 After initial recognition, financial assets are classified into one of three categories: financial assets measured
at fair value through profit or loss, financial assets that are debt instruments measured at amortised cost,
and financial assets that are equity instruments measured at cost less impairment.
12.9 If a reliable measure of fair value is no longer available for an equity instrument that is not publicly traded
but is measured at fair value through profit or loss, its fair value at the last date that instrument was reliably
measurable is treated as the cost of the instrument, and it is measured at this cost amount less impairment
until a reliable measure of fair value becomes available.
33
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
ii) Financial Assets that are Debt Instruments Measured at Amortised Cost
11.14(a) After initial recognition, debt instruments are measured at amortised cost using the effective interest
method. Debt instruments that are classified as current assets are measured at the undiscounted amount of
the cash or other consideration expected to be received.
11.16 Effective interest method is a method of calculating the amortised cost of financial assets and of allocating
the interest income over the relevant period. The effective interest rate is the rate that exactly discounts
estimate future cash receipts through the expected life of the financial assets or, when appropriate, a
shorter period, to the carrying amount of the financial assets.
iii) Financial Assets that are Equity Instruments Measured at Cost Less Impairment
11.14(c)(ii), Equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably,
12.8
and contracts linked to such instruments that, if exercised, will result in delivery of such instruments, are
measured at cost less impairment.
11.24 For certain category of financial assets, such as trade receivables, if it is determined that no objective
evidence of impairment exists for an individually assessed financial asset, whether significant or not, the
assets are included in a group with similar credit risk characteristics and collectively assessed for
impairment.
11.25(a) Impairment losses, in respect of financial assets measured at amortised cost, are measured as the
differences between the assets’ carrying amounts and the present values of their estimated cash flows
discounted at the assets’ original effective interest rate.
11.25(b) If there is objective evidence that impairment losses have been incurred on financial assets measured at cost
less impairment, the amount of impairment losses are measured as the difference between the asset’s
carrying amount and the best estimate of the amount that the Group and the Company would receive for
the asset if it were to be sold at the reporting date.
11.21 The carrying amounts of the financial assets are reduced directly, except for the carrying amounts of trade
receivables which are reduced through the use of an allowance account. Any impairment loss is recognised
11.26 in profit or loss immediately. If, in subsequent period, the amount of an impairment loss decreases, the
previously recognised impairment losses are reversed directly, except for the amounts related to trade
receivables which are reversed to write back the amount previously provided in the allowance account. The
reversal is recognised in profit or loss immediately.
34
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
11.33(c) On derecognition of financial assets in their entirety, the differences between the carrying amounts and the
sum of the consideration received and any cumulative gains or losses are recognised in profit or loss in the
period of the transfer.
Equity instruments are any contracts that evidence a residual interest in the assets of the Company after
22.8 deducting all of its liabilities. Equity instruments issued by the Company are measured at the fair value of
the cash or other resources received or receivable, net of direct costs of issuing the equity instruments. If
payment is deferred and the time value of money is material, the initial measurement shall be on a present
value basis.
22.17 Distributions to owners are deducted from the equity, net of any related income tax benefits.
22.15 In periods after the compound financial instruments were issued, the Company systematically recognises
any difference between the liability component and the principal amount payable at maturity as additional
interest expense using the effective interest method.
11.13 On initial recognition, financial liabilities are measured at transaction price, include transaction costs for
financial liabilities not measured at fair value through profit or loss, unless the arrangement constitutes, in
effect, a financing transaction.
35
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
11.41 After initial recognition, financial liabilities are classified into one of three categories: financial liabilities
measured at fair value through profit or loss, financial liabilities measured at amortised cost, or loan
commitments measured at cost less impairment..
12.9 If a reliable measure of fair value is no longer available for an equity instrument that is not publicly traded
but is measured at fair value through profit or loss, its fair value at the last date that instrument was reliably
measurable is treated as the cost of the instrument, and it is measured at this cost amount less impairment
until a reliable measure of fair value becomes available.
11.16 Effective interest method is a method of calculating the amortised cost of financial liabilities and of
allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimate future cash payments through the expected life of the financial liabilities or, when
appropriate, a shorter period, to the carrying amount of the financial liabilities.
11.38 Any difference between the carrying amounts of the financial liabilities derecognised and the consideration
paid is recognised in profit or loss.
23.30(a) Revenue
23.3 Revenue is measured at the fair value of the consideration received or receivable, net of any trade discounts,
prompt settlement discounts, volume rebates and indirect taxes applicable to the revenue. Revenue is
recognised in profit or loss based on the following:
i) Sales of Goods
23.10 Revenue from sales of goods is recognised when all the following conditions are satisfied:
- the Group and the Company have transferred to the buyer the significant risks and rewards of ownership
of the goods;
- the Group and the Company retain neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the Group and the
Company; and
36
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.
23A.16 The Group operates ‘Free Unit Scheme’ to encourage its customers to acquire usage credits for its ‘X The 2’
software from the Group’s web site where customers will be awarded free credits in the future. On initial
recognition of revenue, the fair value of the consideration received or receivable in respect of the initial sale
is allocated between the award credits granted and the licence fee revenue. The consideration allocated to
the award credits are measured by reference to their fair value, which is the amount for which the award
credits could be sold separately. The consideration allocated to award credits is deferred and recognised as
revenue when award credits are redeemed and the Group fulfils the obligations to supply the awards.
23.26 When it is probable that total contract costs will exceed total contract revenue, the expected loss is
recognised as an expense immediately, with a corresponding provision for an onerous contract.
37
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
Employee Benefits
i) Short-term Employment Benefits
28.5 Short-term employment benefits, such as wages, salaries and other benefits, are recognised at the
undiscounted amount as a liability and an expense when the employees have rendered services to the
Group and the Company.
28.6 The expected cost of accumulating compensated absences are recognised when the employees render
28.7 services that increase their entitlement to future compensated absences. The expected cost of non-
accumulating compensated absences, such as sick and medical leaves, are recognised when the absences
occur.
28.6 The expected cost of accumulating compensated absences are measured at the undiscounted additional
amount expected to be paid as a result of the unused entitlement that has accumulated at the end of the
reporting period.
28.8
The expected cost of profit-sharing and bonus payments are recognised when the Group and the Company
have a present legal or constructive obligation to make such payments as a result of past events and a
reliable estimate of the obligation can be made. A present obligation exists when the Group and the
Company have no realistic alternative but to make the payments.
28.18 The Group’s obligations under the Plan are determined based on triennial actuarial valuations where the
amounts of benefits that the employees have earned in return for their services in the current and prior
periods are estimated. The present values of the Plan’s obligations and the related current service and any
past service cost are determined using the Projected Unit Credit Method.
28.24 Actuarial gains and losses are recognised as income or expense in profit or loss in the period in which they
28.41(b) arise.
28.15 The Plan recognised in the statements of financial position the net amount of the present value of the Plan
adjusted for unrecognised past service cost, minus the fair value of the Plan assets at the reporting date.
Any asset resulting from the computation is stated at the lower of the amount determined or the total of
any cumulative past service cost, and the present value of available refunds and reductions in future
contribution to the Plan.
28.21 Gains or losses on the curtailment or settlement of the Plan are recognised in the profit or loss in the period
when the curtailment or settlement occurs.
38
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
28.35 The Group and the Company are demonstrably committed to a termination when the Group and the
Company have a detailed formal plan for the termination and are without realistic possibility of withdrawal
from the plan.
28.36 Termination benefits in relation to the offer made to encourage voluntary redundancy are measured based
on the number of employees expected to accept the offer.
Borrowing Costs
25.2 All borrowing costs are recognised as an expense in profit or loss in the period in which they are incurred.
Income Tax
Tax expense is recognised in profit or loss, except that a change attributable to an item of income or
expense recognised as other comprehensive income is also recognised in other comprehensive income.
29.4 Tax payable on taxable profit for current and past periods is recognised as a current tax liability to the
extent unpaid. If the amount paid in respect of the current and past periods exceeds the amount payable
for those periods, the excess is recognised as a current tax asset.
29.6 Current tax assets and liabilities are measured at the amounts expected to be paid or recovered, using the
tax rates and laws that have been enacted or substantially enacted by the reporting date.
29.29 Current tax liabilities and assets are offset only when the Group and the Company have a legally enforceable
right to set off the amounts and intend either to settle on a net basis, or to realise the asset and settle the
liability simultaneously.
29.16 Deferred tax is provided in full on temporary differences which are the differences between the carrying
amounts in the financial statements and the corresponding tax base of an asset or liability at the end of the
reporting period.
29.15 Deferred tax liabilities are recognised for all taxable temporary differences that are expected to increase
29.17D taxable profit in the future. Deferred tax assets are recognised for all deductible temporary differences that
are expected to reduce taxable profit in the future and the carryforward of unused tax losses and unused tax
credits.
29.16(b)
Deferred tax liabilities and assets are not recognised in respect of the temporary differences associated with
the initial recognition of an asset or a liability in a transaction that is not a business combination and at the
time of the transactions, affects neither accounting profit nor taxable profit. Deferred tax liabilities are also
29.16 (a)
not recognised for temporary difference associated with the initial recognition of goodwill.
29.18 Deferred tax liabilities and assets reflect the tax consequences that would follow from the manner in which
29.19 the Group and the Company expect to recover or settle the carrying amounts of their assets and liabilities
29.20
and are measured at the tax rates and laws that are expected to apply to the period when the asset is
realised or the liability is settled, based on tax rates that have been enacted or substantially enacted by the
reporting date.
39
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
The Group’s transition date is 1 January 2015. The Group prepared its opening MPERS statement of financial
position at that date.
The Group has applied all the mandatory exceptions and certain of the optional exemptions from full
retrospective application of the MPERS. Previously, the Group presents the most recent financial statements
using Private Entity Reporting Standards (“PERS”).
Reconciliation
The following reconciliations show the effect of the transition to the MPERS on the Group’s equity and
profit.
31 December 1 January
2015 2015
35.13(b) RM RM
2015
35.13(c) RM
40
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
35.10(a) i) Write-off of deferred charges that do not meet the MPERS definition of an intangible assets
Costs in relation to deferred charges that do not meet the definition of intangible assets under the MPERS
have been included in retained earnings at the Group’s date of transition.
16.10(a) 1. Fair Value of Investment Property, Jointly Controlled Entities and Other Financial Assets and Liabilities
The fair value of investment property is derived from the current market prices of comparable real estate.
The fair value is based on a valuation made by independent appraisers who hold a recognised and
relevant valuation licence and have recent experience in valuing office buildings in the same location as
the Group’s investment property. On the other hand, the fair value for certain other financial assets and
financial liabilities are obtained from the quoted price in an active market, if quoted prices are
unavailable, the price of a recent transaction for an identical financial assets or liabilities provides
evidence of fair value as long as there has not been a significant change in economic circumstances or a
significant lapse of the time since the transaction took place.
41
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
10.18 3. Change of Estimated Useful Lives for Property, Plant and Equipment
The Group reviews the estimated useful lives of property, plant and equipment annually. During the
financial year, the estimated useful lives of certain items of plant and machinery has been reduced from
12 years to 10 years after considering the changes in technological advancement and the market demand
for goods produced using these items of plant and machinery.
The impact of the change in the estimated useful lives is to increase the depreciation in profit or loss by
RM29,200 for the current financial year. The financial effects for the change in the depreciation rate in
2017 and 2018 are estimated to increase the depreciation by RM17,560 and RM46,600 respectively, if
there are no disposals of these assets.
The recoverable amount of an asset is the greater of its fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-
tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset, which requires significant judgement relating to level of revenue and amount of
operating costs. The Group uses all readily available information in determining an amount that is a
reasonable approximation of the value in use, including estimates based on reasonable and supportable
assumptions and projections of revenue and operating costs. Changes in these estimates could have a
significant impact on the carrying value of the assets and could result in additional impairment charge or
reversal of impairment in future periods.
42
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
Equipment,
Plant and Motor Furniture and
4.11(a) Freehold Land Buildings Machinery Vehicles Fittings Total
THE GROUP RM RM RM RM RM RM
Cost
Carrying Amounts
43
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
Equipment,
Motor Furniture and
4.11(a) Freehold Land Buildings Vehicles Fittings Total
THE COMPANY RM RM RM RM RM
Cost
17.31(d) At 1 January 2016 72,000 350,000 98,350 10,850 531,200
17.31(e)(i) Additions (Note 40) - 50,000 150,360 3,914 204,274
17.31(e)(ii) Disposals - - (42,106) (2,106) (44,212)
17.31(d) At 31 December 2016 72,000 400,000 206,604 12,658 691,262
Carrying Amounts
17.31(d) At 31 December 2015 72,000 280,000 49,175 6,510 407,685
17.31(d) At 31 December 2016 72,000 322,000 154,604 8,459 557,063
17.31 Note: The reconciliation need not be presented for prior periods.
17.32(a) The carrying amounts of the property, plant and equipment under finance lease are as follows:
20.13(a)
The Group
2016 2015
RM RM
516,084 235,953
17.32(a) The carrying amounts of the property, plant and equipment pledged to secure banking facilities are as follows:
44
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
6. INVESTMENT PROPERTY
The The
Group Company
2016 2016
RM RM
16.10(b) The fair value of the investment property of the Group and the Company at 31 December 2016 is determined
by a valuation carried out by Messrs. Valuer & Co., an independent professional valuer, based on the open
market values on an existing use basis. Messrs. Valuer & Co. has relevant recognised professional qualification
and recent experience in valuing properties in the relevant locations.
16.10(c) The Group have pledged investment property with carrying amount of RM2,983,000 (2015: RM2,506,000) to
secure banking facilities granted to the Group.
16.10 (e) Note: The reconciliation need not be presented for prior periods.
7. GOODWILL
The Group
2016
RM
Cost
19.26 At 1 January 2016 3,828,841
19.26(a) Acquisition through business combinations (Note 38) 1,397,252
19.26(c) Derecognition on disposal of a subsidiary (Note 39) (176,930)
19.26(d) Exchange gain/(loss) 205,128
19.26 At 31 December 2016 5,254,291
45
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
The Group
2016
RM
Accumulated Impairment Losses
19.26 At 1 January 2016 -
19.26(b) Impairment losses recognised (Note 35c) 37,961
19.26 At 31 December 2016 37,961
Carrying Amounts
19.26 At 31 December 2016 5,216,330
19.26 Note: The reconciliation need not be presented for prior periods.
Cost
18.27(c) At 1 January 2016 3,896,583 463,752 4,360,335
18.27(e)(i) Additions 71,716 76,900 148,616
18.27(e)(ii) Disposals - - -
18.27(e)(iii) Acquisition through business combinations - - -
18.27(e)(vi) Exchange gain - 43 43
18.27(c) At 31 December 2016 3,968,299 540,695 4,508,994
18.27(e)(iv),
(v) Accumulated Amortisation and Impairment Losses
18.27(c) At 1 January 2016 - 137,695 137,695
18.27(e)(ii) Disposals - - -
18.27(e)(v) Impairment losses reversed (Note 35c) - (895) (895)
18.27(e)(iv) Amortisation (Note 35c) 154,678 54,070 208,748
18.27(e)(vi) Exchange loss - 20 20
18.27(c) At 31 December 2016 154,678 190,890 345,568
Carrying Amounts
18.27(e) Note: The reconciliation need not be presented for prior periods.
46
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
18.28(a) The carrying amounts of the Group’s patents and trademarks to protect the computer software developed by
the Group in Malaysia, Singapore, United States, United Kingdom and Japan are RM349,805 (2015:
RM326,057) at the reporting date. The average remaining amortisation period of these patents and
trademarks is 8 years.
18.28(a) The carrying amounts of the Group’s service concession undertakes the operation, maintenance and toll
collection of the XY Expressway and AX Expressway are RM3,813,621 (2015: RM3,896,583) at the reporting
date. The average remaining amortisation period of the service concession is 30 years.
18.28(b) In 2015, the Group acquired the patent by way of a government grant in Hong Kong SAR. This intangible
asset is initially recognised at the fair value of RM43,000, and subsequently measured using the cost model.
The carrying amount of the said patent is RM37,500 (2015: RM42,000) at the reporting date.
18.28(c) The carrying amounts of other intangible assets whose titles are restricted are RM290,000 (2015: RM310,000).
18.28(c) The carrying amounts of other intangible assets pledged as securities for liabilities are RM50,000 (2015:
RM50,000).
9. SUBSIDIARIES
The Company
2016 2015
RM RM
9.23(b) Although the Group holds not more than half of the voting power in AE S & I (Japan) Inc., a subsidiary
incorporated in Japan, the Company has the power to cast the majority of votes at the meetings of the Board
of Directors and the control of AE S & I (Japan) Inc. is by the Board. Thus, AE S & I (Japan) Inc. is controlled by
the Company and the financial statements of AE S & I (Japan) Inc. are included in the consolidated financial
statements.
9.23(c) The financial statements of AE S & I (PRC) Co., Ltd., a subsidiary incorporated in People Republic of China, are
made up to 30 September to coincide with the reporting date of another investor of AE S & I (PRC) Co., Ltd.,
which is incorporated in Country Y, as a result of the statutory requirements in Country Y. For the purpose of
preparing consolidated financial statements, the financial statements of AE S & I (PRC) Co., Ltd. for the financial
year ended 30 September 2016 have been used, and appropriate adjustments have been made for significant
transactions between 30 September 2016 and 31 December 2016.
9.23(d) As a result of the borrowings’ terms and conditions, the investment in AE S & I Limited of RM39,489 (2015:
RM39,489) is subordinate to the borrowings obtained from a bank. Hence, the declaration of dividends and
returns of capital by AE S & I Limited is subject to the said bank’s approval.
47
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
14.12(c) Fair value of quoted associate accounted for using the equity method 693,000 642,900 - -
As a result of the borrowings’ terms and conditions, the loan to SERP Sdn. Bhd., an associate incorporated in
Malaysia, of RM47,809 (2015: RM47,201) is subordinate to the borrowings obtained from an offshore bank.
Hence, the repayments of loan from SERP Sdn. Bhd. are subject to the said bank’s approval.
14.15 If the permitted treatment (fair value method) is elected, the entity shall disclose the information, as
illustrated in “investment in jointly controlled entities”.
15.21 Financial assets at fair value through profit or loss 305,535 450,153 - -
11.43 The fair values of the financial assets at fair value through profit or loss is determined based on the quoted
market price in an active market.
15.20 If the permitted treatment (equity method) is elected, the entity shall disclose the information, as
illustrated in “investment in associates”.
48
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
11.46 The carrying amounts of the Group’s other financial assets that have been pledged as collaterals for bank
facilities is RM114,456 (2015: RM124,439). In accordance with the terms and conditions, should the Group
dispose off these financial assets, the proceeds from the disposal shall first be used to repay the outstanding
debts.
11.43 The fair values of the financial assets at fair value through profit or loss is determined based on the quoted
market price in an active market.
11.48(c) No impairment losses have been recognised in respect of the other financial assets during the financial year.
49
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
29.32(e) All the temporary differences, unused tax losses and unused tax credits do not have expiry date, unless
otherwise enacted in the future.
29.17A Deferred tax assets are not recognised for certain deductible temporary differences as it is not probable that
future taxable profit will be available against which the deductible temporary differences and unused tax losses
29.32(e) can be utilised by the subsidiaries. However, the unused tax losses may be carried forward indefinitely.
29.17H At the end of each reporting period, the subsidiaries reassess the unrecognised deferred tax assets. Previously
unrecognised deferred tax assets are recognised to the extent that it has become probable that future taxable
profit will allow the deferred tax assets to be recovered.
50
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
The following are the movements of deferred tax assets and liabilities (before offsetting):
51
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
3.17(e),8.3,
8.4 NOTES TO THE FINANCIAL STATEMENTS
3.23(c) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
52
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
29.32(d) The following are the movements of deferred tax liabilities of the Company:
The Company
2016 2015
RM RM
34.7(a) The biological assets comprise fruit trees and unharvested fruits.
53
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
13.22(c) The amount of inventories recognised as an expense amounted to RM171,678 (2015: RM230,226) during the
financial year.
13.22(e) Inventories with carrying amounts of RM82,288 (2015: RM69,108) have been pledged to licensed banks for
bank facilities granted to the Group.
33.9(b) The trade amounts due from subsidiaries are due 60 days after the date of sales.
54
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
33.9(b) The non-trade amounts due from subsidiaries are unsecured, interest-free and have no fixed terms of
33.9(c) repayments. No provisions for uncollectible receivables are required for the amounts of outstanding balances
due from subsidiaries.
11.48(c) Included in the impairment losses recognised at the reporting date are balances of RM46,660 (2015:
RM33,130) representing individually impaired trade receivables. These trade receivables have been placed
under liquidation or are in significant financial difficulties and have defaulted on payments to the Group. The
Group does not hold any collateral over these balances.
7.21, Fixed deposits with carrying amounts of RM3,540 (2015: RM3,540) have been pledged to licensed banks for
11.46
bank facilities granted to the Group.
7.20 Cash and cash equivalents include the following items for the purpose of the statements of cash flows:
55
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
During the financial year, the authorised ordinary share capital of the Company has been increased by
10,000,000 ordinary shares to 50,000,000 ordinary shares of RM1.00 each.
During the financial year, the Company has issued the following ordinary shares:
4.12(a)(v) The new ordinary shares issued rank pari passu in respect of the distribution of dividends and repayment of
capital with the existing ordinary shares.
4.12(a)(vi) At the reporting date, 100,000 (2015: Nil) ordinary shares are held by the Company as treasury shares (Note
20), and number of outstanding ordinary shares issued and fully paid (excluding treasury shares) is 11,220,200
(2015: 11,050,200) units.
56
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Share premium arose from the issues of ordinary shares in excess of the par value, as follows:
The Group and
The Company
RM
1 January 2007 Issues of 300,000 ordinary shares at an issue price of RM2.50 for working capital
purpose 450,000
1 October 2015 Issues of 5,000 ordinary shares at an issue price of RM2.70 for the exercise of ESOS 8,500
1 June 2016 Issue of 250,000 ordinary shares at an issue price of RM4.00 as part of the
consideration for the acquisition of a subsidiary 750,000
6 June 2016 Issues of 20,000 ordinary shares at an issue price of RM2.70 for the exercise of ESOS 34,000
1,242,500
The shareholders of the Company, by a special resolution passed in a general meeting held on 30 April 2016,
approved the Company’s plan to repurchase its own ordinary shares. The directors of the Company are
committed to enhancing the value of the Company to its shareholders and believe that the repurchase plan
can be applied in the best interests of the Company and its shareholders.
During the financial year, the Company repurchased its issued ordinary shares as follows:
57
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
4.12(b) 21. PREMIUM FOR OPTION ON IRREDEEMABLE CONVERTIBLE UNSECURED LOAN STOCKS
The Group and The
Company
2016 2015
RM RM
This represents the equity component of 200,000 units of 5% Irredeemable Convertible Unsecured Loan Stocks
issued during the financial year (Note 29).
If the share option is exercised, the amount from the equity-settled employee benefits reserves is transferred
to share premium. If the share option expires, the amount from the equity-settled employee benefits reserves
is transferred to retained profits.
The details of the equity-settled share-based payments are disclosed in Note 33.
29.32(f) During the year, the Company is under single-tier tax system, tax on the Company's chargeable income is a
final tax and any dividend distributed will be exempted from tax in the hands of shareholders.
58
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
The Group
2016 2015
RM RM
28.41(f) Changes in the fair value of the plan assets are as follows:
The Group
2016
RM
28.41 Note: The reconciliation need not be presented for prior periods.
59
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
145,158 106,589
28.41(i) None of the above plan assets is owned by the Group and the Company. The Group and the Company do not
occupy any of the above properties or use any of the above assets.
28.41(j) The actual return on plan assets was RM5,647 (2015: RM4,961).
28.41(d) The most recent comprehensive actuarial valuation is performed on 31 December 2016.
28.41(k) The principal actuarial assumptions used at the reporting date are as follows:
The Group
2016 2015
% %
193,807 210,156 - -
60
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
21.14(b),(c) Warranties
Provision for warranties is made based on the management’s best estimate of the expenditure required, based
on past experience of similar products and services, to be incurred during the warranty periods.
61
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
The Group
2016 2015
RM RM
20.13(b) Present value of finance lease payables is analysed as follows:
- not later than one year 56,966 53,476
- later than one year and not later than five years 91,293 103,502
- later than five years 329 2,310
Non-current 91,622 105,812
148,588 159,288
20.13(c) The Group obtains finance lease facilities to finance the acquisition of certain plant and machinery and motor
vehicles. The average remaining lease terms is 4 years as at 31 December 2016. Implicit interest rates of the
finance lease of 4.0% are fixed at the date of the agreements, and the amount of lease payments are fixed
throughout the lease period. The Group has the option to purchase the assets at the end of the agreements
with minimum purchase considerations. There is no significant restriction clauses imposed on the finance lease
arrangements.
11.41
29. BANK OVERDRAFTS AND OTHER BORROWINGS
The Group The Company
2016 2015 2016 2015
RM RM RM RM
OTHER BORROWINGS
Non-current Liabilities
Term loans (i):
- secured 248,148 265,977 - 41,534
- unsecured - - - -
5% Irredeemable Convertible Unsecured Loan Stocks (ii) 374,998 - 374,998 -
623,146 265,977 374,998 41,534
62
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Current Liabilities
Secured:
- term loans (i) 504,598 662,922 40,751 70,122
- revolving credits (i) 532,324 387,963 119,184 68,157
- other short-term trade facilities (i) 141,349 192,348 - -
Unsecured:
- term loans (i) 46,182 22,755 - -
- other short-term trade facilities (i) 118,064 140,756 - -
5% Irredeemable Convertible Unsecured Loan Stocks (ii) 10,000 - 10,000 -
1,352,517 1,406,744 169,935 138,279
i) Bank Overdrafts, Term Loans, Revolving Credits and Other Short-term Trade Facilities
11.46 The secured bank borrowings of the Group and the Company are secured by a legal charge over the Group’s
and the Company’s landed properties, fixed and floating charges over assets of certain subsidiaries and
guaranteed by the Company. The unsecured bank borrowings are guaranteed by the Company.
11.47 During the financial year, a subsidiary defaulted a payment of principal and interest for a term loan amounting
to RM35,000 (2015: RMSifar) due to technical error in processing the cheque. The default was remedied
immediately by the subsidiary with a replaced cheque. The terms of the loan have not been altered.
11.47 At the reporting date, there are no other defaults in payment of borrowings nor breaches of loan agreement
terms.
11.42 The weighted-average effective interest rates of the borrowings are as follows:
63
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
Upon conversion of the ICULS into new ordinary shares, such new ordinary shares to be issued will rank pari
passu in all respects with the existing ordinary shares, except that they shall not be entitled to any dividends
declared prior to the date of conversion.
22.13 The net proceeds received from the issue of the ICULS have been split between the financial liability
component and equity component, representing the residual attributable to the option to convert the financial
liability into ordinary shares of the Company, as follows:
1.7.16
RM
22.15 Subsequent to its initial recognition, the financial liability component of the ICULS is measured at amortised
cost. The effective finance cost is calculated by applying an effective interest rate of 8% per annum to the
financial liability component. No interest was paid in respect of the ICULS during the financial year since the
first interest payment is due on 1 January 2017. The difference between the carrying amount of the financial
liability component at the date of issue and the reporting date represents the effective finance cost less
interest payable to date.
11.43 The CRPS are designated as financial liabilities at fair value through profit or loss on initial recognition. At the
reporting date, the change in the fair value of the CRPS is insignificant and no adjustment has been made.
64
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
33.9(b) The trade amounts due to subsidiaries are due 60 days after the date of sales.
33.9(b) The non-trade amounts due to subsidiaries are unsecured, interest-free and have no fixed terms of
repayments.
24.6(b) The government grant granted is subject to the fulfilment of the condition that the percentage of the
knowledge workers should attain 20% of the total employees of the said subsidiary by 30 June 2017. The
subsidiary has achieved this condition on 20 January 2017.
65
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
26.18(a) Certain salient terms and conditions of the ESOS are as follows:
1. The exercise prices of the ESOS are set at 10% discount of the estimated share price of the Company’s
shares on the grant date.
2. The vesting period for the ESOS is 3 years.
3. The ESOS granted expires after 8 years from grant date.
4. The ESOS is forfeited if the employees leave during the vesting period.
5. An eligible employee shall not participate in more than one scheme implemented by any company within
the Group.
6. ESOS granted shall be exercisable by the option holders by notice in writing to the Company.
26.18(b) Movements of the number and the related weighted average exercise prices of ESOS are as follows:
The Group and The Company
2016 2015
Weighted Weighted
No. of Average No. of Average
Share Exercise Share Exercise
Options Prices Options Prices
Units RM Units RM
The Company issued 20,000 (2015: 5,000) new ordinary shares for the ESOS exercised during the financial year
at weighted average exercise price of RM2.70 (2015: RM2.70). The ESOS was exercised on a regular basis
throughout the financial year. The weighted average share price during the financial year was RM5.25 (2015:
RM3.73).
26.18(b)(vii) The ESOS outstanding at the reporting date has the following weighted average exercise prices and remaining
contractual life:
Exercise Number of
Date of Expiry Prices Outstanding ESOS
RM 2016 2015
95,000 55,000
66
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
26.19 The fair value of the services received for ESOS is measured by reference to the fair value of the equity
instruments granted.
26.19 During the financial year, ESOS was granted on 1 January 2016 (2015: 1 January 2015). The estimated fair
values of the ESOS granted on the grant dates are RM0.50 (2015: RM0.40).
26.19
The weighted average fair values of ESOS granted during the financial year are computed based on the Black-
Scholes-Merton formula. The inputs to the formula are summarised as follows:
2016 2015
67
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
68
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
28.43 ** Termination benefits are provided as a result of an offer made by a subsidiary for voluntary redundancy. During
the financial year, these amounts have been fully paid and are financed by the Group’s internal funds.
If the entity chooses to present the expenses by their functions, the following items are required to be
disclosed:
The Group The Company
2016 2015 2016 2015
RM RM RM RM
69
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
29.32(c) The applicable tax rate has been reduced from 25% in prior year to 24% for the current financial year, as
enacted by the government.
29.32(b) The effective tax rate of the Group is lower than the statutory tax rate as certain income of the subsidiaries are
exempted from tax.
29.32(b) The effective tax rate of the Company is lower than the statutory tax rate as the Company’s dividend revenue
are exempted from tax.
37. DIVIDENDS
On 1 April 2016, the Company paid a 10% final tax exempt dividend, total dividend of RM1,105,020 (2015:
RM1,104,020), in respect of the previous financial year. The net dividend per share was 10 sen.
On 31 August 2016, the directors declared a 10% interim tax exempt dividend, total dividend of RM1,132,020
(2015: RM1,105,020), in respect of the current financial year. The dividend was paid to the shareholders on 31
October 2016. The net dividend per share was 10 sen.
32.8 After the reporting date, the directors have proposed a 10% final tax exempt dividend in respect of the current
financial year. The dividend is subject to approval by the shareholders at the forthcoming Annual General
Meeting and has not been included as a liability in the financial statements. Total dividend payable is
RM1,122,020 (dividend for treasury shares is not included), and the net dividend per share is 10 sen.
70
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
19.25(e) Assets, liabilities and contingent liabilities, including goodwill recognised at the acquisition date, are as follows:
Fair value
RM
102,748
Goodwill on consolidation (Note 7) 1,397,252
19.25(d) The Company has issued 250,000 new ordinary shares at an issue price of RM4.00 to part finance the
acquisition of AXP Property Sdn. Bhd..
The net assets of AE Packaging Sdn. Bhd. at the date of disposal and at 31 December 2015 were as follows:
1.12.16 31.12.15
RM RM
71
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
1.12.16 31.12.15
RM RM
Disposal of a subsidiary, net of cash and cash equivalents disposed off 423,004
Purchases of property, plant and equipment (Note 5) 4,494,329 748,995 204,274 30,681
7.19 Less: Purchases made directly by:
- term loans * (142,219) (36,129) - -
7.19(a) - finance lease (413,758) (117,688) - -
Purchases of property, plant and equipment made by cash payments 3,938,352 595,178 204,274 30,681
7.19(a) * Note: If the assets are acquired by directly assuming the related liabilities, the transaction is deemed
to be a non-cash transaction.
Since the selling price less costs to sell is expected to exceed the net carrying amount of the relevant assets
and liabilities, no impairment loss is recognised.
72
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
4.14(c) The carrying amount of these assets and liabilities are as follows:
The Group
31.12.16
RM
Assets:
Investment property 543,924
Trade and other receivables 10,396
554,320
223,108
33.10(b) Subsidiaries
Dividend revenue - - 2,200,000 2,000,000
Property rental revenue - - 24,831 22,506
Management fee revenue - - 306,961 221,133
33.10(b) Associate
Dividend revenue 50,000 30,000 - -
33.13 The directors are of the opinion that all the transactions above have been entered into in the normal course of
business and have been established on terms and conditions that are not materially different from that
obtainable in transactions with unrelated parties. *
* Note: This disclosure shall be included only if such terms can be substantiated.
73
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
33.7 Total key management personnel compensation 320,648 314,355 319,568 313,275
43. COMMITMENTS
Capital commitments of the Company and its subsidiaries
17.32(b) At the reporting date, the Group and the Company have the following commitments for the acquisition of the
property, plant and equipment:
The Group
2016 2015
RM RM
73,671 59,018
74
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
The Group
2016 2015
RM RM
85,232 85,301
75
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
The Group As
Previously
Reported As Restated
2015 2015
RM RM
Statement of Financial Position
Non-current assets
Other investments 612,201 -
Other financial assets - 612,201
Current assets
Biological assets carried at fair value through profit or loss - 100,275
Inventories 770,136 669,861
Other investments 155,781 -
Other financial assets - 155,781
The Company
2015 2015
RM RM
Statement of Financial Position
Non-current assets
Other investments 17,952 -
Other financial assets - 17,952
Current assets
Other investments 52,090 -
Other financial assets - 52,090
32.10(a),(b)
46. EVENTS AFTER THE REPORTING PERIOD
After the reporting period,
a) the Company has obtained court approval to appeal against a legal suit won by a creditor at the end of
the reporting period. Total amount claimed by the creditor is RM1 million. No provision has been made in
the financial statements as the advocator of the Company estimates that the Company has a good chance
of winning the litigation.
b) one of the Group’s debtors has gone into liquidation. The total outstanding amount due from this debtor
is RM70,000. Of the total outstanding amount, the Group expects to recover approximately RM50,000. An
impairment loss has been recognised for the estimated unrecoverable amount.
76
MPERS Ref.
3.23(a) ILLUSTRATIVE GROUP (MPERS) SDN. BHD. (Company No. 200212345A)
(Incorporated in Malaysia)
3.23(b) AND ITS SUBSIDIARIES
77
AXP Solutions Sdn. Bhd. (Co. no. 693866-X)
Block 4808-3-23A, CBD Perdana 2
Jalan Perdana
63000 Cyberjaya
Selangor, Malaysia
Tel: +60 3 8318 8297
Fax: +60 3 8318 9297
E-mail: publications@myaxp.com
www.myAXP.com
Malaysian Private Entities Reporting Standard (MPERS) Illustrative Financial Statements - 2014 edition