Frontken Berhad Annual Report 2018

73 Frontken Corporation Berhad (651020-T) ANNUAL REPORT 2018 3. SIGNIFICANT ACCOUNTING POLICIES (CONT’D) Impairment (Cont’d) RR 2VYJR[VNW] XO 7XW ࠰WJWLRJU *\\N]\ ,XW]۴M *W RVYJR[VNW] UX\\ R\ [NLXPWR\NM RW Y[X࠰] X[ UX\\ RVVNMRJ]NUb 2W [N\YNL] XO J\\N]\ X]QN[ ]QJW PXXM`RUU JWM `QNW ]QN[N R\ J LQJWPN RW ]QN N\]RVJ]N\ ^\NM ]X MN]N[VRWN ]QN [NLX_N[JKUN JVX^W] J \^K\NZ^NW] RWL[NJ\N RW ]QN [NLX_N[JKUN JVX^W] XO JW J\\N] R\ ][NJ]NM J\ J [N_N[\JU XO ]QN Y[N_RX^\ RVYJR[VNW] UX\\ JWM R\ [NLXPWR\NM ]X ]QN Na]NW] XO ]QN LJ[[bRWP JVX^W] XO ]QN J\\N] ]QJ] `X^UM QJ_N KNNW MN]N[VRWNM WN] XO JVX[]R\J]RXW JWM MNY[NLRJ]RXW QJM WX RVYJR[VNW] UX\\ KNNW [NLXPWR\NM =QN [N_N[\JU R\ [NLXPWR\NM RW Y[X࠰] X[ UX\\ RVVNMRJ]NUb Leased Assets (i) Finance Leases * UNJ\N R\ [NLXPWR\NM J\ J ࠰WJWLN UNJ\N RO R] ][JW\ON[\ \^K\]JW]RJUUb ]X ]QN 0[X^Y JUU ]QN [R\T\ JWM [N`J[M\ RWLRMNW]JU ]X X`WN[\QRY >YXW RWR]RJU [NLXPWR]RXW ]QN UNJ\NM J\\N] R\ VNJ\^[NM J] JW JVX^W] NZ^JU ]X ]QN UX`N[ XO R]\ OJR[ _JU^N JWM ]QN Y[N\NW] _JU^N XO ]QN VRWRV^V UNJ\N YJbVNW]\ <^K\NZ^NW] ]X RWR]RJU [NLXPWR]RXW ]QN J\\N] R\ JLLX^W]NM OX[ RW JLLX[MJWLN `R]Q ]QN JLLX^W]RWP YXURLb JYYURLJKUN ]X ]QJ] J\\N] =QN LX[[N\YXWMRWP URJKRUR]b R\ RWLU^MNM RW ]QN \]J]NVNW] XO ࠰WJWLRJU YX\R]RXW J\ QR[N Y^[LQJ\N YJbJKUN\ 6RWRV^V UNJ\N YJbVNW]\ VJMN ^WMN[ ࠰WJWLN UNJ\N\ J[N JYYX[]RXWNM KN]`NNW ]QN ࠰WJWLN LX\]\ JWM ]QN [NM^L]RXW XO ]QN X^]\]JWMRWP URJKRUR]b =QN ࠰WJWLN LX\]\ `QRLQ [NY[N\NW] ]QN MROON[NWLN KN]`NNW ]QN ]X]JU UNJ\RWP LXVVR]VNW]\ JWM ]QN OJR[ _JU^N XO ]QN J\\N]\ JLZ^R[NM J[N [NLXPWR\NM RW ]QN Y[X࠰] X[ UX\\ JWM JUUXLJ]NM X_N[ ]QN UNJ\N ]N[V \X J\ ]X Y[XM^LN J LXW\]JW] YN[RXMRL [J]N XO RW]N[N\] XW ]QN [NVJRWRWP KJUJWLN XO ]QN URJKRUR]b OX[ NJLQ JLLX^W]RWP YN[RXM 5NJ\NQXUM UJWM `QRLQ RW \^K\]JWLN R\ J ࠰WJWLN UNJ\N R\ LUJ\\R࠰NM J\ Y[XYN[]b YUJW] JWM NZ^RYVNW] (ii) Operating Leases All leases that do not transfer substantially to the Group all the risks and rewards incidental to ownership are LUJ\\R࠰NM J\ XYN[J]RWP UNJ\N\ JWM ]QN UNJ\NM J\\N]\ J[N WX] [NLXPWR\NM XW ]QN \]J]NVNW] XO ࠰WJWLRJU YX\R]RXW XO ]QN 0[X^Y JWM XO ]QN ,XVYJWb 9JbVNW]\ VJMN ^WMN[ XYN[J]RWP UNJ\N\ J[N [NLXPWR\NM J\ JW NaYNW\N RW ]QN Y[X࠰] X[ UX\\ XW J \][JRPQ] URWN VN]QXM X_N[ ]QN ]N[V XO ]QN UNJ\N 5NJ\N RWLNW]R_N\ [NLNR_NM J[N [NLXPWR\NM J\ J [NM^L]RXW XO [NW]JU NaYNW\N X_N[ ]QN UNJ\N ]N[V XW J \][JRPQ] URWN VN]QXM ,XW]RWPNW] [NW]JU\ J[N LQJ[PNM ]X Y[X࠰] X[ UX\\ RW ]QN [NYX[]RWP YN[RXM RW `QRLQ ]QNb J[N RWL^[[NM Inventories 2W_NW]X[RN\ J[N \]J]NM J] ]QN UX`N[ XO LX\] JWM WN] [NJUR\JKUN _JU^N ,X\] R\ MN]N[VRWNM XW ]QN ࠰[\] RW ࠰[\] X^] VN]QXM and comprises the purchase price and incidentals incurred in bringing the inventories to their present location and LXWMR]RXW Net realisable value represents the estimated selling price less the estimated costs of completion and the estimated LX\]\ WNLN\\J[b ]X VJTN ]QN \JUN Notes To The Financial Statements (cont’d)