FRS 134 Interim Financial Reporting (“IFR”)

1. FRS 134 Interim Financial Reporting (“IFR”) Introduction: • Bursa Malaysia has required all listed companies to present quarterly reports, issued not > 60 days after the end of the quarter • FRS 134 does not made it mandatory for enterprises to present IFR

2. 1.Content of Interim Financial Statements (“IFS”) • At a minimum, an IFS should include include the following components: • condensed balance sheet • condensed income statement • condensed statement of changes in equity or condensed statement of recognised gains and losses • condensed cash flow statement • selected explanatory notes

3. Para 23 provided that interim reports should include: • - BS as of the end of the current interim period and a comparative BS of the end of the immediately preceding FY • - IS for the current interim period and cumulative for the current FYTD, with the comparable interim periods (current and YTD) of the immediately preceding FY • - SOCE or statement of recognised gains /looses cumulatively for the current FY to date, with comparative statement for the comparable YTD period of the immediately preceding FY; and • - CFS cumulatively for the current FY to date, with comparative statement for the comparable YTD period of the immediately preceding FY • Refer illustration 1

4. 1.1 Selected explanatory notes • Para 16 provides a list of information to be disclosed if they are material and not disclosed elsewhere in the IFR. • The information should be reported on a financial YTD basis • Pls refer item (a) to (l) • Those condensed financial statements must be clearly labelled as such (para 20), and an explicit statement that the IFR is to be read in conjunction with the most recent annual FR (para 21) • EPS should be presented on the face of an IS, complete or condensed, for an interim period (para 11)

5. 2 Recognition and Measurement • FRS 134 recognised that interim measurements may rely greater extent on estimates than annual financial data • Para 31 requires an enterprise to apply the same accounting policies on its IFS as those applied in its annual FS • Inventories - refer illustration 2 • Provisions - making similar estimates at interim dates often entails updating of the prior annual provision rather than the engaging of outside experts to do a new calculation

6. Impairment of assets - refer illustration 3 • Depreciation and amortisation - based on assets owned during that interim period only • Recognition of revenues received seasonally, cyclically, or occasionally - should NOT be anticipated or deferred for interim date, if it would not be appropriate at the end of the FY (Para 40) • Cost incurred unevenly - should be anticipated or deferred for interim reporting purpose, if it would be appropriate to anticipated or deferred at the end of FY (para 42)

7. 3 Restatement of Previously Reported Interim Periods • Where is a change in accounting policy, the change will be accounted for as follows: • - restating the FS of prior interim periods of the current FY and comparative interim periods of prior FY (para 46); or • - when it is impracticable to do so, adjust the FS of prior periods of the current FY and comparative interim periods of prior FY prospectively form the earliest date practicable