TKL

Account - Standard

This page will share with clients some important or new accounting classifications or definiations or practices to assist the preparation of financial statements in accordance with the up-to-date accounting standards.

A subsidiary is an enterprise that is controlled by the Company through the power to govern its financial and operating policies so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable or convertible are taken into account.	A jointly controlled entity is a joint venture. A joint venture is a contractual arrangement whereby the Company and other parties undertake an economic activity which is subject to joint control, that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.
An associate is an enterprise, other than a subsidiary or a joint venture, in which the Company has significant influence through participation in its financial and operating policy decisions.	Two parties are considered to be related if one party has the ability, directly or indirectly through one or more intermediaries, to control the other party or exercise significant influence over the other party in making financial and operating decisions or has joint control over the other party. Parties are also considered to be related if they are subject to common control.
Financial assets at fair value through profit or loss comprises financial assets held for trading and derivatives, including debt securities and bank deposits with embedded derivatives for yield enhancement whose economic characteristics and risks are not closely related to the host contracts.	Available-for-sale financial assets comprises financial assets which are non-derivatives and not classified under other investment categories.
At each end of the reporting period, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where an impairment loss subsequently reverses, the carrying amount of the asset other than goodwill is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years.	Provision is recognised when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, whose amount can be reliably estimated. A financial guarantee is a contract that requires the Company to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument and it is measured as a provision or the higher of an amortised amount. Contingent liability will be disclosed in the financial statements, it is a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.