PR Newswire
LONDON, United Kingdom, November 14
FOR IMMEDIATE RELEASE 14 November 2024
Asia Wealth Group Holdings Limited
("Asia Wealth", the “Group” or the "Company")
UNAUDITED INTERIM RESULTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2024
The Board is pleased to report the unaudited interim results of Asia Wealth Group Holdings Limited (“Accounts”) for the period from 1 March 2024 to 31 August 2024. These Accounts have been prepared under IFRS and will shortly be available via the Company’s website, www.asiawealthgroup.com .
Chairman’s Statement
Financial Highlights
The highlights for the six months ended 31 August 2024 include:
The Group reports a profit after tax of US$13,270 on sales of US$503,588 for the six months ended 31 August 2024. These sales were principally generated by the Company’s wholly owned subsidiary, Meyer Asset Management Ltd., BVI. This result was principally caused by reduced revenue, but also by continuing unrealised exchange losses on a weak Yen.
Cash balance has increased by US$31,469 and net assets increased by US$35,196, respectively, since 1st March 2024.
The Board has taken and is continuing to forge new revenue generating relationships, as well as expanding revenue creating opportunities, in both new avenues and existing. We continue to seek alliances and partnerships with firms in the same and new sectors.
Asia Wealth continues to seek investment opportunities in the UK as well as in the Asia region and is currently engaged in multiple discussions on various potential acquisitions. The Directors continue to run the business in a cost-effective manner.
The Accounts have not been audited or reviewed by the Company’s auditors.
The Directors of the Company accept responsibility for the content of this announcement.
Richard Cayne
Executive Chairman
Contacts:
Richard Cayne (Executive Chairman)
Asia Wealth Group Holdings Limited, +66 2 2611 2561
Aquis Growth Market Corporate Adviser
Peterhouse Capital Limited, +44 20 7220 9795
EXTRACTS ARE SET OUT BELOW:
Consolidated Statement of Financial Position
At 31 August 202 4
Expressed in U.S. Dollars
| Note(s) | 31-Aug-24 | 31-Aug-23 | ||||
| Non-current assets | ||||||
| Fixed assets | 3 | 11,327 | 4,255 | |||
| Investment property | 4,13 | 621,215 | 603,891 | |||
| 632,542 | 608,146 | |||||
| Current assets | ||||||
| Cash and cash equivalents | 1,154,431 | 1,034,152 | ||||
| Trade receivables | 68,018 | 79,034 | ||||
| Financial assets at fair value through profit or loss | 5 | - | 210,594 | |||
| Loans and other receivables | 6 | 31,688 | 44,461 | |||
| Due from director | 7 | 436,067 | 418,753 | |||
| Prepaid tax | 1,128 | 941 | ||||
| Prepayments and other assets | 64,112 | 54,010 | ||||
| 1,755,444 | 1,841,945 | |||||
| Total assets | $ | 2,387,986 | $ | 2,450,091 | ||
| Equity | ||||||
| Share capital | 8 | 913,496 | 913,496 | |||
| Treasury shares | 8 | (318,162) | (318,162) | |||
| Consolidation reserve | 391,793 | 391,793 | ||||
| Translation reserve | 35,863 | 35,679 | ||||
| Retained earnings | 286,046 | 287,287 | ||||
| Total equity | 1,309,036 | 1,310,093 | ||||
| Current liabilities | ||||||
| Trade payables | 1,046,686 | 1,105,192 | ||||
| Other payables and accrued expenses | 7 | 32,264 | 34,806 | |||
| Total liabilities | 1,078,950 | 1,139,998 | ||||
| Total equity and liabilities | $ | 2,387,986 | $ | 2,450,091 |
Consolidated Statement of Comprehensive Income
For the half year ended 31 August 2024
Expressed in U.S. Dollars
| Note(s) | Mar – Aug 2024 | Mar – Aug 2023 | |||||
| Revenue | |||||||
| Commission income | 11 | 503,588 | 523,350 | ||||
| 503,588 | 523,350 | ||||||
| Expenses | |||||||
| Commission expense | 11 | 191,665 | 198,043 | ||||
| Directors’ fees | 7 | 131,275 | 171,027 | ||||
| Professional fees | 7 | 115,097 | 121,412 | ||||
| Salaries and wages | 23,697 | 21,084 | |||||
| Office expenses | 21,682 | 21,405 | |||||
| Rent | 9,003 | 8,402 | |||||
| Travel and entertainment | 21,109 | 24,213 | |||||
| Marketing | 2,231 | 3,584 | |||||
| Depreciation | 3,11 | 662 | 380 | ||||
| Other expenses | 22,095 | 21,260 | |||||
| 538,516 | 590,810 | ||||||
| Net profit/(loss) from operations | (34,928) | (67,460) | |||||
| Other income/(expenses) | |||||||
| Net foreign currency exchange gain/(loss) | 35,839 | (36,948) | |||||
| Other income | 12,359 | 10,618 | |||||
| 48,198 | (26,330) | ||||||
| Net profit/(loss) before taxation | 13,270 | (93,790) | |||||
| Taxation | 9,11 | - | - | ||||
| Total comprehensive income/(loss) | $ | 13,270 | $ | (93,790) | |||
| - | - | ||||||
| Total comprehensive income/(loss) attributable to equity | |||||||
| holders of the Parent Company | $ | 13,270 | $ | (93,790) | |||
Earnings/(losses) per share attributable to the equity holders of the Parent Company :
| Basic earnings per share | 10 | $ | 0.00119 | (0.00844) | ||
| Diluted earnings per share | 10 | $ | 0.00119 | (0.00844) |
Consolidated Statement of Cash Flows
For the half year ended 31 August 2024
Expressed in U.S. Dollars
| Attributable to Equity Holders of the Parent Company | ||||||||
| Share Capital | Treasury Shares | Consolidation Reserve | Translation Reserve | Retained Earnings | Equity | |||
| Number | US$ | |||||||
| Balances at beginning of 1 Mar 2024 | 11,433,433 | 913,496 | (318,162) | 391,793 | 13,937 | 272,776 | 1,273,840 | |
| Translation differences | - | - | - | - | 21,926 | - | 21,926 | |
| Total comprehensive income | - | - | - | - | - | 13,270 | 13,270 | |
| Balances at end of 31 Aug 2024 | 11,433,433 | $913,496 | $(318,162) | $391,793 | $35,863 | $286,046 | $1,309,036 | |
| Attributable to Equity Holders of the Parent Company | ||||||||
| Share Capital | Treasury Shares | Consolidation Reserve | Translation Reserve | Retained Earnings | Equity | |||
| Number | US$ | |||||||
| Balances at beginning of 1 Mar 2023 | 11,433,433 | 913,496 | (318,162) | 391,793 | 23,582 | 381,077 | 1,391,786 | |
| Translation differences | - | - | - | - | 12,097 | - | 12,097 | |
| Total comprehensive income | - | - | - | - | - | (93,790) | (93,790) | |
| Balances at end of 31 Aug 2023 | 11,433,433 | $913,496 | $(318,162) | $391,793 | $35,679 | $287,287 | $1,310,093 | |
Consolidated Statement of Cash Flows
For the half year ended 31 August 2024
Expressed in U.S. Dollars
| Mar – Aug 2024 | Mar – Aug 2023 | ||||||
| Operating activities | |||||||
| Total comprehensive income/(Loss) | 13,270 | (93,790) | |||||
| Adjustments for: | |||||||
| Depreciation | 662 | 380 | |||||
| Net unrealised (gain)/loss on investment property | (34,224) | (3,677) | |||||
| Net foreign currency exchange (gain)/loss | 21,926 | 12,097 | |||||
| Operating income/(loss) before changes in operating assets and liabilities | 1,634 | (84,990) | |||||
| Changes in operating assets and liabilities: | |||||||
| Decrease/(Increase) in trade receivables | 41,591 | 13,638 | |||||
| Decrease/(Increase) in loan and other receivable | (3,797) | 4,998 | |||||
| Decrease/(Increase) in prepaid tax | (284) | (269) | |||||
| Decrease/(Increase) in prepayments and other assets | 9,276 | 9,709 | |||||
| Increase/(Decrease) in trade payables | 2,000 | (34,385) | |||||
| Increase/(Decrease) in other payables and accrued expenses | (14,938) | (16,611) | |||||
| Net cash flows from/(used in) operating activities | 35,482 | (107,910) | |||||
| Investing activities | |||||||
| Acquisition of fixed assets | (6,804) | - | |||||
| Cash flows from/(used in) investing activities | (6,804) | - | |||||
| Financing activities | |||||||
| Net advances from/(to) related party | 2,791 | 2,464 | |||||
| Cash flows from/(used in) financing activities | 2,791 | 2,464 | |||||
| Net increase/(decrease) in cash and cash equivalents | 31,469 | (105,446) | |||||
| Cash and cash equivalents at beginning of year | 1,122,962 | 1,139,598 | |||||
| Cash and cash equivalents at end of period | $ | 1,154,431 | $ | 1,034,152 | |||
| Cash and cash equivalents comprise cash at bank. | |||||||
Notes to and forming part of the Consolidated Financial Statements
For the half year ended 31 August 2024
Expressed in U.S. Dollars
Asia Wea lth G r o up Ho lding s L imit e d (th e “Parent Co mp a ny”) w as in co rp o r a t e d in th e B riti s h Virgin I s l a nd s on 7 Oc t o b e r 2010 und e r the BV I B u s in ess Co mp a ni es Ac t, 2004 . The li a bility of th e s h a r e h o ld e r s i s limit e d by s h a r es . The Pa r e nt Co mp a ny m a int a in s it s r e gi s t e r e d o ffi ce in th e B riti s h V irgin I s l a nd s . T h e co n so lid a t e d fin a n c i a l s t a t e m e nt s w e r e a uth o ri se d for i ss u e by th e Boa rd of D ir ec t o r s on 31 October 2024.
The p r incipal activity of t he Pa r en t Company and i t s subsidia r ies (t he “ G r oup ”) is to p r ovide wealth managemen t adviso r y se r vices to Asian - based high ne t worth individuals and co r po r a t ions .
T h e Pa r e nt Co mp a ny ’s s h a r es were li s t e d on the PLUS S t oc k Exc h a ng e b ase d in Lo nd o n, U nit e d K ingd o m. In J un e 2012 , I CAP P l c , an int e rd ea l e r br o k e r b ase d in Lo nd o n, U nit e d K ingd o m, b o ught PLUS S t oc k Exc h a ng e a nd r e br a nd e d a nd r e l a un c h e d it as I CAP Sec uriti es & De riv a tiv es Exc h a ng e (“I SDX ”). On 30 Dece mb e r 2016, I SDX w as r e n a m e d NEX Exc h a ng e . In March 2020 , the U.K. F in a n c i a l Co ndu c t A uth o rity a ppr o v e d th e ac qui s iti o n of NEX Exc h a ng e L imit e d by A qui s Exc h a ng e PLC . Co n se qu e ntly, NEX Exc h a ng e c h a ng e d its n a m e t o A qui s S t oc k Exc h a ng e (“ AQSE ”). T h e Pa r e nt Co mp a ny ’s s h a r es were a ut o m a ti ca lly li s t e d t o AQSE .
T h e Pa r e nt Co mp a ny h as the f o ll o wing s ub s idi a ri es as at 31 August 2024 a nd 31 August 2023:
| Incorporation | Country of | Functional | Ownership | ||
| Date | Incorporation | Currency | Interest | ||
| 2024 | 2023 | ||||
| Meyer Asset Management Ltd. (“Meyer BVI”) | 2000 | British Virgin Islands | U.S. Dollars | 100.00% | 100.00% |
| Meyer International Limited (“Meyer Thailand”) | 2010 | Thailand | Thailand Baht | 49.00% | 49.00% |
| Nihon Wealth Management Company Limited (formerly Prime RE Limited) | 2016 | Thailand | Thailand Baht | 49.00% | 49.00% |
On 13 June 2012 , Meyer BV I was licensed t o p r ovide inves t men t business se r vices unde r Sec t ion 3 of t he Secu r i t ies and I nves t men t Business Ac t, 2010 o f t he B r i t ish Vi r gin I slands .
On 23 Se pt e mb e r 2016, Me y e r T h a il a nd ac quir e d 51 . 00 % of N ih o n Wealth Ma n a g e m e nt Co mp a ny L imit e d.
On 20 Oc t o b e r 2016, 51 . 00 % o f Me y e r T h a il a nd, o wn e d b e n e fi c i a lly via a trust a gr ee m e nt in f a v o ur of Me y e r BV I, w as ac quir e d by Nihon Wea lth Ma n a g e m e nt Co mp a ny L imit e d.
T h e r e f o r e , the Pa r e nt Co mp a ny i s th e indir ec t o wn e r of 51 . 00 % o f th e o ut s t a nding s h a r es o f N ih o n Wealth Ma n a g e m e nt Co mp a ny L imit e d and Me y e r T h a il a nd, and acco rdingly the Pa r e nt Co mp a ny h as acco unt e d f o r them as wh o lly o wn e d s ub s idi a ri es .
T h e m a t e ri a l acco unting p o li c i es a d o pt e d in the pr e p a r a ti o n of th e G r o up ’s co n so lid a t e d fin a n c i a l s t a t e m e nt s a r e set o ut b e l o w. T h e acco unting p o li c i es h a v e b ee n co n s i s t e ntly a ppli e d by th e G r o up a nd a r e co n s i s t e nt with th ose u se d in th e pr e vi o u s y ea r, unl ess o th e rwi se s t a t e d.
2) MATERIAL A CCO UNTIN G PO LI C I ES ( Co nt ’ d)
Statement of Compliance
The consolida t ed f inancial s t a t emen t s of the G r oup have been p r epa r ed in acco r dance wi t h I n t e r na t ional Financial Repo rt ing S t anda r ds (“I FRSs ”) and in t e r p r e t a t ions issued by the I FRS I n t e r p r e t a t ions Commi tt ee (“IFRS I C ”) applicable to companies r epo rt ing unde r I FRSs . The consolida t ed f inancial s t a t emen t s comply wi t h I FRSs as issued by the I n t e r na t ional Accoun t ing S t anda r ds Boa r d .
Hi s t o ri ca l cost con v en ti on
T h e co n so lid a t e d fin a n c i a l s t a t e m e nt s h a v e b ee n pr e p a r e d on th e b as i s o f hi s t o ri ca l cos t s a nd do n o t take int o acco unt in c r eases in the market v a lu e of asse t s exce pt for inv es tm e nt pr o p e rty m eas ur e d at f a ir v a lu e .
T h e Group’s co n so lid a t e d fin a n c i a l s t a t e m e nt s a nd r eco rd s a r e pr ese nt e d a nd m a int a in e d in
U . S . Dolla r s , r ounded t o t he nea r es t dolla r.
N e w and a m ended standards
E ff ec tiv e 1 Ma r c h 2023 , th e G r o up h as a ppli e d th e a m e ndm e nt s t o Int e rn a ti o n a l Acco unting S t a nd a rd s 1 , “ P r ese nt a ti o n of F in a n c i a l S t a t e m e nt s ” and I FRS P r ac ti ce S t a t e m e nt 2 , “Making Ma t e ri a lity J udgm e nt s ”. The a m e ndm e nt s r e quir e that the G r o up di sc l oses its m a t e ri a l acco unting p o li c i es , in s t ea d of its s ignifi ca nt acco unting p o li c i es . F urth e r, th e a m e ndm e nt s ex pl a in h o w the G r o up can id e ntify a m a t e ri a l acco unting p o li c y.
The r e a r e no new, r evised o r amended IFRSs o r IFRS I C in t e r p r e t a t ions t ha t a r e e ff ec t ive for the f i r s t time for t he f inancial pe r iod beginning 1 Ma r ch 2023 t ha t would be expec t ed t o have a ma t e r ial impac t on the G r oup’s consolida t ed f inancial s t a t emen t s .
A number o f new s t anda r ds , amendmen t s to s t anda r ds and in t e r p r e t a t ions a r e e ff ec t ive f o r annual pe r iods beginning a ft e r 1 March 2023 , and have not been adop t ed ea r ly in p r epa r ing these consolida t ed f inancial s t a t emen t s . None o f these a r e expec t ed to have a signi f ican t e ff ec t on t he consolida t ed f inancial s t a t emen t s of the G r oup .
T h e pr e p a r a ti o n o f co n so lid a t e d fin a n c i a l s t a t e m e nt s r e quir es the u se of acco unting es tim a t es whi c h m a y diff e r fr o m actual r es ult s . Ma n a g e m e nt also n ee d s t o exe r c i se judgm e nt s in the a ppli ca ti o n of p o li c i es .
Below is an ove r view o f the a r eas t ha t involved a highe r deg r ee of judgment or complexi t y , and of items which are more likely to be ma t e r ially ad j us t ed due t o es t ima t es and assump t ions t u r ning ou t t o be w r ong .
The a r eas involving signi f ican t es t ima t es o r j udgmen t s are:
I mpai r men t of r eceivables
De t e r mina t ion of f ai r value o f inves t men t property Es t ima t ing t he useful lives o f f ixed asse t s Judgmen t on going conce r n
I mpai r men t of r eceivables
P r ovision f o r doub tf ul accoun t s is main t ained at a level conside r ed adequa t e t o p r ovide f o r po t en t ially uncollec t ible r eceivables . The level of allowance for doub tf ul accoun t s is based on ageing of t he accoun t s r eceivable , pas t collec t ion tr ends and o t he r f ac t o r s t ha t may a ff ec t collec t abili t y , including knowledge of individual cus t ome r ci r cums t ances , cus t ome r c r edi t- wo rt hiness and cu rr en t economic tr ends . An allowance accoun t is used when t he r e is ob j ec t ive evidence that the Group will no t be able to collec t all amoun t s due acco r ding to the o r iginal t e r ms of t he ag r eemen t.
2) MATERIAL A CCO UNTIN G PO LI C I ES ( Co nt ’ d)
De t e r mina t ion of f ai r value of inves t men t p r ope rt y
The G r oup ob t ains independen t valua t ions f o r its inves t men t p r ope rt y at leas t annually . A t the end of each r epo rt ing pe r iod , the Di r ec t o r s upda t e t hei r assessmen t o f the f ai r value , t aking in t o accoun t the mos t r ecen t independen t valua t ions . The Di r ec t o r s de t e r mine a p r ope rt y’s value wi t hin a r ange of r easonable f ai r value es t ima t es . The best evidence of fair value is cu rr en t p r ices in an ac t ive ma r ke t f o r simila r p r ope rt ies . Whe r e such in f o r ma t ion is no t available , the Di r ec t o r s conside r in f o r ma t ion from a va r ie t y o f sou r ces including :
c urr e nt pri ces in an active m a rk e t f o r pr o p e rti es of a diff e r e nt n a tur e or r ece nt pri ces of s imil a r pr o p e rti es in l ess ac tiv e m a rk e t s , a dju s t e d to r e fl ec t th ose diff e r e n ces
di sco unt e d cas h fl o w pr o j ec ti o n s based on r e li a bl e es tim a t es of futur e cas h flows ca pit a li se d income pr o j ec ti o n s b ase d on a pr o p e rty ’s es tim a t e d n e t market in co m e , and a ca pit a li sa ti o n r a t e d e riv e d fr o m an a n a ly s i s o f m a rk e t e vid e n ce .
Es tim a ting th e u se ful liv es of fi xe d asse t s
T h e u se ful lives o f the G r o up ’s fi xe d assets a r e es tim a t e d based on th e period whi c h th e y a r e ex p ec t e d t o be a v a il a bl e f o r use. The es tim a t e d u se ful liv es of fixed assets a r e r e vi e w e d a nd upd a t e d if ex p ec t a ti o n s diff e r m a t e ri a lly fr o m pr e vi o u s es tim a t es .
J udgm e nt o n g o ing co n ce rn
A key ass umpti o n in the pr e p a r a ti o n o f the co n so lid a t e d fin a n c i a l s t a t e m e nt s i s that th e G r o up will co ntinu e as a g o ing co n ce rn. T h e g o ing co n ce rn ass umpti o n ass um es th a t the G r o up will co ntinu e in o p e r a ti o n for th e f o r eseea bl e future a nd will be a bl e to r ea li se it s asse t s a nd di sc h a rg e it s li a biliti es in th e n o rm a l co ur se o f o p e r a ti o n s .
T h e es tim a t es a nd und e rlying ass umpti o n s a r e r e vi e w e d on a n o ng o ing b as i s . Re vi s i o n s t o acco unting es tim a t es a r e r eco gni se d pr os p ec tiv e ly. They a r e b ase d on hi s t o ri ca l ex p e ri e n ce a nd o th e r f ac t o r s , in c luding ex p ec t a ti o n s of futur e e v e nt s that m a y have a fin a n c i a l imp ac t on the e ntity a nd that a r e b e li e v e d t o b e r easo n a bl e und e r the c ir c um s t a n ces .
S ub s idi a ri es
T h e co n so lid a t e d fin a n c i a l s t a t e m e nt s in c lud e th e fin a n c i a l s t a t e m e nt s of the Pa r e nt Co mp a ny a nd it s s ub s idi a ri es f o r the half y ea r ended 31 August 2024. De t a il s of the G r o up a r e set out in no te 1.
S ub s idi a ri es a r e a ll e ntiti es (in c luding s tru c tur e d e ntiti es ) o v e r whi c h th e Pa r e nt Co mp a ny h as co ntr o l. The Pa r e nt Co mp a ny co ntr o l s an e ntity wh e r e th e Pa r e nt Co mp a ny i s ex p ose d to, or h as right s to, v a ri a bl e r e turn s from its inv o lv e m e nt with the e ntity a nd has th e a bility to a ff ec t those r e turn s thr o ugh it s p o w e r to dir ec t the ac tiviti es o f the e ntity. S ub s idi a ri es a r e fully co n so lid a t e d fr o m the date on which co ntr o l i s tr a n s f e rr e d to the Pa r e nt Co mp a ny. T h e y a r e d eco n so lid a t e d from the date th a t co ntr o l ceases .
Int e r- co mp a ny tr a n sac ti o n s , b a l a n ces a nd unr ea li se d g a in s on tr a n sac ti o n s b e tw ee n G r o up co mp a ni es a r e e limin a t e d. Unrealised l osses a r e a l so e limin a t e d unless th e tr a n sac ti o n pr o vid es e vid e n ce o f an imp a irm e nt of th e tr a n s f e rr e d asse t. Acco unting p o li c i es of s ub s idi a ri es h a v e b ee n c h a ng e d where n ecessa ry to e n s ur e co n s i s t e n c y with th e p o li c i es a d o pt e d by th e G r o up.
Non - con tr olling in t e r es t s in t he r esul t s and equi t y of subsidia r ies a r e shown sepa r a t ely in the consolida t ed f inancial s t a t emen t s .
Ac qui s iti o n s
T h e ac qui s iti o n m e th o d of acco unting i s used to acco unt for bu s in ess co mbin a ti o n s by th e G r o up.
2) MATERIAL A CCO UNTIN G PO LI C I ES ( Co nt ’ d)
Ac qui s iti o n s ( Co nt ’ d)
The conside r a t ion tr ans f e rr ed for the acquisi t ion of a subsidia r y or business comp r ises the f ai r value of the asse t s tr ans f e rr ed , t he liabili t ies incu rr ed and t he equi t y in t e r es t s issued by t he G r oup . The conside r a t ion tr ans f e rr ed also includes the f ai r value of any con t ingen t conside r a t ion a rr angemen t and t he f ai r value of any p r e - exis t ing equi t y in t e r es t in the subsidia r y .
Ac qui s iti o n-r e l a t e d cos t s a r e ex p e n se d as in c urr e d.
I den t i f iable asse t s acqui r ed and liabili t ies and con t ingen t liabili t ies assumed in a business combina t ion are, wi t h limi t ed excep t ions , measu r ed ini t ially a t t hei r f ai r values at t he acquisi t ion da t e .
On an acquisi t ion - by - acquisi t ion basis , the Group r ecognises any non - con tr olling in t e r es t in the acqui r ee a t the date o f acquisi t ion ei t he r a t f ai r value o r at t he non - con tr olling in t e r es t ’s p r opo rt iona t e sha r e of t he acqui r ed en t i t y’s net iden t i f iable assets.
The excess o f the conside r a t ion tr ans f e rr ed , t he amoun t of any non - con tr olling in t e r es t in the acqui r ed en t i t y and the acquisi t ion - da t e fair value of any p r evious equi t y in t e r es t in the acqui r ed en t i t y ove r the f ai r value of the ne t iden t i f iable asse t s acqui r ed is r eco r ded as goodwill . If these inves t men t s a r e less t han the fair value of t he ne t iden t i f iable asse t s o f the business acqui r ed , the di ff e r ence is r ecognised di r ec t ly in p r o f i t o r loss as a ba r gain pu r chase .
Where se ttl e m e nt of a ny p a rt of cash co n s id e r a ti o n i s d e f e rr e d, the a m o unt s p a y a bl e in th e futur e a r e di sco unt e d to th e ir pr ese nt v a lu e as at the date of exc h a ng e . T h e di sco unt r a t e used is th e e ntity ’s in c r e m e nt a l b o rr o wing r a t e , b e ing th e r a t e a t whi c h a s imil a r b o rr o wing co uld be o bt a in e d fr o m a n ind e p e nd e nt fin a n c i e r und e r co mp a r a bl e t e rm s and co nditi o n s .
Co nting e nt co n s id e r a ti o n i s c l ass ifi e d e ith e r as e quity o r a fin a n c i a l li a bility. A m o unt s c l ass ifi e d as a fin a n c i a l li a bility a r e s ub se qu e ntly r e m eas ur e d to f a ir v a lu e with c h a ng es in fair v a lu e r eco gni se d in pr o fit o r loss.
If the bu s in ess co mbin a ti o n i s ac hi e v e d in s t a g es , th e ac qui s iti o n d a t e ca rrying v a lu e of th e ac quir e r ’s pr e vi o u s ly h e ld e quity int e r es t in the ac quir ee i s r e m eas ur e d t o f a ir v a lu e at th e ac qui s iti o n d a t e . Any g a in s o r l osses a ri s ing from s u c h r e m eas ur e m e nt are r eco gni se d in pr o fit or l oss .
d) Fix e d asse t s
Fixed asse t s a r e s t a t e d at hi s t o ri ca l cost l ess acc umul a t e d d e pr ec i a ti o n and imp a irm e nt l oss , if a ny. H i s t o ri ca l cos t in c lud es ex p e nditur e th a t i s dir ec tly a ttribut a bl e to the ac qui s iti o n of the it e m s .
S ub se qu e nt cos t s a r e in c lud e d in the asse t ’s ca rrying a m o unt o r r eco gni se d as a se p a r a t e asset, as a ppr o pri a t e , o nly wh e n it i s pr o b a bl e th a t futur e eco n o mi c b e n e fit s assoc i a t e d with the it e m will fl o w t o th e G r o up and the cost of th e it e m ca n b e m eas ur e d r e li a bly. T h e ca rrying a m o unt of a ny co mp o n e nt acco unt e d for as a se p a r a t e asse t i s d e r eco gni se d wh e n r e pl ace d. A ll o th e r r e p a ir s and m a int e n a n ce a r e c h a rg e d to pr o fit o r loss during the r e p o rting period in whi c h th e y a r e in c urr e d.
De pr ec i a ti o n i s c h a rg e d to th e co n so lid a t e d s t a t e m e nt o f co mpr e h e n s iv e in co m e on a s tr a ight lin e b as i s o v e r th e es tim a t e d useful lives o f th e fi xe d assets.
T h e a nnu a l r a t es of d e pr ec i a ti o n in u se are as f o ll o w s :
| Lease h o ld impr o v e m e nt s | 20% |
| O ffi ce e quipm e nt | 20 - 33 % |
| Ve hi c l es | 20% |
e) I n v est m ent propert y
I nves t men t p r ope rt y , which is p r ope rt y held t o ea r n r en t als and / o r for capi t al app r ecia t ion and is not occupied by t he G r oup , is measu r ed ini t ially a t cos t, including tr ansac t ion costs.
2) MATERIAL A CCO UNTIN G PO LI C I ES ( Co nt ’ d)
e) I n v est m ent propert y ( Co nt ’ d)
T r ansac t ion cos t s include tr ans f e r t axes , p r o f essional f ees f o r legal se r vices and ini t ial leasing commissions to b r ing t he p r ope rt y t o the condi t ion necessa r y f o r i t to be capable of ope r a t ing . The ca rr ying amoun t also includes the cos t o f r eplacing pa rt of an exis t ing inves t men t p r ope rt y at the t ime that cost is incu rr ed i f the r ecogni t ion c r i t e r ia are met.
S ub se qu e nt to initi a l r eco gniti o n, inv es tm e nt pr o p e rty i s m eas ur e d a t f a ir v a lu e . Ga in s o r l osses a ri s ing from c h a ng es in th e f a ir v a lu e o f inv es tm e nt property a r e in c lud e d in the co n so lid a t e d s t a t e m e nt of co mpr e h e n s iv e in co m e in the period in whi c h th e y a ri se .
Fair value is based on ac t ive ma r ke t p r ices , ad j us t ed , i f necessa r y , for di ff e r ences in t he na t u r e , loca t ion or condi t ion of the speci f ic asse t. If t his in f o r ma t ion is not available , the G r oup uses al t e r na t ive valua t ion me t hods , such as r ecen t p r ices on less active markets o r discoun t ed cash f low p r o j ec t ions . Valua t ions a r e pe rf o r med as a t t he r epo rt ing da t e by p r o f essional independen t app r aise r s who hold r ecognised and r elevan t p r o f essional quali f ica t ions and have r ecen t expe r ience in the loca t ion and ca t ego r y of inves t men t p r ope rt y being valued . These valua t ions f o r m t he basis f o r t he ca rr ying amoun t s in the consolida t ed f inancial s t a t emen t s .
The f ai r value o f inves t men t p r ope rt y r e f lec t s , among o t he r t hings , r en t al income from cu rr en t leases and o t he r assump t ions ma r ke t pa rt icipan t s would make when p r icing t he p r ope rt y unde r cu rr en t ma r ke t condi t ions .
S ub se qu e nt ex p e nditur e i s ca pit a li se d to the asse t ’s ca rrying a m o unt o nly wh e n it i s pr o b a bl e that futur e eco n o mi c b e n e fit s assoc i a t e d with th e ex p e nditur e will fl o w t o th e Group a nd the cos t of the it e m can b e m eas ur e d r e li a bly. A ll o th e r r e p a ir s a nd m a int e n a n ce costs a r e ex p e n se d wh e n in c urr e d. W h e n part of a n inv es tm e nt property is r e pl ace d, th e cost of th e r e pl ace m e nt i s in c lud e d in the ca rrying a m o unt o f the pr o p e rty, and th e f a ir v a lu e i s r eassesse d.
An inv es tm e nt pr o p e rty is d e r eco gni se d upon di s p osa l or wh e n the inv es tm e nt pr o p e rty i s p e rm a n e ntly withdr a wn fr o m use a nd n o future eco n o mi c b e n e fit s a r e ex p ec t e d fr o m the di s p osa l. Any gain or loss a ri s ing on d e r eco gniti o n of the pr o p e rty, whi c h i s ca l c ul a t e d as the diff e r e n ce b e tw ee n th e n e t di s p osa l pr ocee d s a nd th e ca rrying a m o unt of th e asse t, i s in c lud e d in the co n so lid a t e d s t a t e m e nt of co mpr e h e n s iv e in co m e in th e p e ri o d in whi c h th e pr o p e rty i s d e r eco gni se d.
I nves t men t p r ope rt y is de r ecognised when it has been disposed of or pe r manen t ly wi t hd r awn fr om use and no f u t u r e economic bene f i t is expec t ed fr om i t s disposal . The di ff e r ence be t ween the net disposal p r oceeds and t he ca rr ying amount of the asset would result in ei t he r gains or losses at the r e t i r emen t or disposal of inves t men t p r ope rt y .
I nves t men t p r ope rt y comp r ises condominium uni t s .
f) C ash and cash equ iv a l en t s
Fo r the pu r pose of p r esen t a t ion in t he consolida t ed s t a t emen t of cash f lows , cash and cash equivalen t s include cu rr en t deposi t s wi t h banks and o t he r sho rt-t e r m highly liquid f inancial ins tr umen t s with o r iginal ma t u r i t ies o f t h r ee mon t hs or less t ha t are r eadily conve rt ible t o known amoun t s of cash and are sub j ec t t o an insigni f ican t risk o f changes in value , and bank ove r d r a ft s .
g) Fi nanc i a l asse t s at a m o rti sed cos t
F in a n c i a l asse t s at a m o rti se d cos t co mpri se tr a d e r ece iv a bl es , loans a nd o th e r r ece iv a bl es a nd du e fr o m dir ec t o r. F in a n c i a l asse t s are r eco gni se d initi a lly at the a m o unt o f co n s id e r a ti o n that i s un co nditi o n a l, unl ess th e y co nt a in a s ignifi ca nt fin a n c ing co mp o n e nt, in which case they a r e r eco gni se d at f a ir v a lu e plu s tr a n sac ti o n cos t s that a r e dir ec tly a ttribut a bl e t o th e ir ac qui s iti o n. T h ese fin a n c i a l asse t s a r e h e ld f o r co ll ec ti o n of co ntr ac tu a l cas h fl o w s r e pr ese nting so l e ly p a ym e nt s of prin c ip a l and int e r es t, if any, a nd th e r e f o r e a r e m eas ur e d s ub se qu e ntly at a m o rti se d cos t u s ing th e e ff ec tiv e int e r es t m e th o d. A ny g a in o r loss a ri s ing on d e r eco gniti o n i s r eco gni se d dir ec tly in pr o fit or loss a nd pr ese nt e d in o th e r g a in s /(l osses ) t o g e th e r with f o r e ign exc h a ng e g a in s a nd l osses . Imp a irm e nt l osses a r e pr ese nt e d as a se p a r a t e lin e it e m in the co n so lid a t e d s t a t e m e nt of co mpr e h e n s iv e in co m e .
Re gul a r way pur c h ases a nd sa l es a r e r eco gni se d on th e tr a d e -d a t e , the d a t e o n whi c h th e G r o up co mmit s t o pur c h ase or sell the asse t. F in a n c i a l asse t s a r e d e r eco gni se d wh e n th e right s t o r ece iv e cas h fl o w s from the fin a n c i a l asse t s h a v e ex pir e d or have b ee n tr a n s f e rr e d a nd the G r o up h as tr a n s f e rr e d s ub s t a nti a lly a ll the ri s k s a nd r e w a rd s of o wn e r s hip.
2) MATERIAL A CCO UNTIN G PO LI C I ES ( Co nt ’ d)
Fo r tr a d e r ece iv a bl es , l oa n s a nd o th e r r ece iv a bl es a nd du e fr o m dir ec t o r, th e G r o up a ppli es the g e n e r a l a ppr oac h whi c h r e quir es ex p ec t e d c r e dit losses (“ ECL ”) t o b e r eco gni se d b ase d on th e full thr ee - s t a g e m o d e l as f o ll o w s :
S t age 1 : It ems t ha t have not de t e r io r a t ed signi f ican t ly in c r edi t quali t y since ini t ial r ecogni t ion . A loss allowance equal t o 12 - mon t h ECL is r ecognised and in t e r es t income is calcula t ed on the g r oss ca rr ying amoun t of the f inancial asse t.
S t age 2 : It ems that have de t e r io r a t ed signi f ican t ly in c r edi t quali t y since ini t ial r ecogni t ion , bu t do no t have ob j ec t ive evidence of a c r edi t loss even t. A loss allowance equal to li f e t ime ECL is r ecognised , bu t in t e r es t income is s t ill calcula t ed on t he gross ca rr ying amoun t of the asse t.
S t a g e 3 : It e m s that have o bj ec tiv e e vid e n ce of imp a irm e nt at the r e p o rting d a t e . A loss a ll o w a n ce equal to lif e tim e ECL is r eco gni se d and int e r es t income i s ca l c ul a t e d on the n e t ca rr ying amoun t.
T h e G r o up co n s id e r s a r ece iv a bl e in d e f a ult wh e n co ntr ac tu a l p a ym e nt s are over 365 d a y s p as t du e . Ho w e v e r, in ce rt a in cases , the G r o up m a y a l so co n s id e r a r ece iv a bl e t o be in d e f a ult wh e n int e rn a l and ex t e rn a l inf o rm a ti o n indi ca t es that the G r o up i s unlik e ly to r ece iv e the o ut s t a nding co ntr ac tu a l a m o unt s in full b e f o r e t a king int o acco unt a ny c r e dit e nh a n ce m e nt s h e ld by th e G r o up. A r ece iv a bl e i s writt e n off wh e n th e r e i s n o r easo n a bl e ex p ec t a ti o n o f r eco v e ring th e co ntr ac tu a l cash fl o w s .
Receivables for which an impai r men t p r ovision was r ecognised , a r e w r i tt en off agains t the p r ovision when t he r e is no expec t a t ion o f r ecove r ing addi t ional cash . Subsequen t r ecove r ies of amoun t s p r eviously w r i tt en o ff a r e c r edi t ed agains t impai r men t losses .
Financial liabili t ies a r e non - de r iva t ive con tr ac t ual obliga t ions t o deliver cash or ano t he r f inancial asse t to another en t i t y and comp r ise tr ade payables and o t he r payables and acc r ued expenses .
T h ese fin a n c i a l li a biliti es a r e initi a lly r eco gni se d a t f a ir v a lu e on th e d a t e th e G r o up b eco m es a p a rty to th e co ntr ac tu a l pr o vi s i o n s of an in s trum e nt and are s ub se qu e ntly m eas ur e d at a m o rti se d cost u s ing the e ff ec tiv e int e r es t m e th o d.
F in a n c i a l li a biliti es are d e r eco gni se d wh e n the o blig a ti o n s p ec ifi e d in a co ntr ac t i s di sc h a rg e d, ca n ce ll e d or ex pir e d.
S h a r e cap it a l r ep r ese nt s th e n o min a l va lu e o f s h a r es th a t h ave bee n i ss u ed . In c r e m e nt a l cos t s d ir ec tl y a ttri b ut ab l e t o the i ss u e of o r d in a r y s h a r es a r e r ecog ni sed as a ded u c ti o n from eq uit y .
W h e r e a n y G r o u p co m pa n y p ur c h ases th e Pa r e nt Co m pa n y’s eq uit y in s trum e nt s , f o r exa m p l e as th e r es ult of a s h a r e b u y - back or a s h a r e - based pay m e nt p l a n, the co n s i de r a ti o n pa i d , in c lu d in g any d ir ec tl y a ttri b ut ab l e in c r e m e nt a l costs (net of in co m e t axes ) i s ded u c t ed fr o m e quity a ttri b ut ab l e t o th e o wn e r s o f the G r o u p as tr eas ur y shares until the s h a r es a r e ca n ce ll ed or r e i ss u ed . Where s u c h o r d in a r y s h a r es a r e s u bseq u e ntl y r e i ss u ed , any co n s i de r a ti o n r ece i ved , net o f a n y d ir ec tl y a ttri b ut ab l e in c r e m e nt a l tr a n sac ti o n cos t s a n d the r e l a t ed in co m e tax e ff ec t s , i s in c lu ded in eq uit y a ttri b ut ab l e to th e o wn e r s o f the G r o u p .
Re t ained ea r nings r ep r esen t the cumula t ive balance of pe r iodic ne t income / loss , dividend dis tr ibu t ions and p r io r pe r iod ad j us t men t s , i f any .
O t he r componen t s o f equi t y include t he f ollowing :
co n so lid a ti o n r ese rv e – co mpri ses diff e r e n ces in the v a lu a ti o n b ases a nd p os t- ac qui s iti o n r ese rv es of inv es tm e nt in s ub s idi a ri es .
tr ansla t ion r ese r ve – comp r ises f o r eign cu rr ency tr ansla t ion di ff e r ences a r ising fr om the tr ansla t ion of f inancial s t a t emen t s o f the G r oup’s f o r eign en t i t ies in t o t he r epo rt ing cu rr ency .
2) MATERIAL A CCO UNTIN G PO LI C I ES ( Co nt ’ d)
In r e l a ti o n t o th e r e nd e ring o f pr o f ess i o n a l se rvi ces , the G r o up r eco gni ses fee in co m e as tim e i s ex p e nd e d and cos t s a r e in c urr e d, pr o vid e d th e a m o unt of co n s id e r a ti o n t o be r ece iv e d i s r easo n a bly d e t e rmin a bl e a nd th e r e i s r easo n a bl e ex p ec t a ti o n of it s ultim a t e co ll ec ti o n.
Re nt a l in co m e a ri s ing fr o m o p e r a ting l eases on inv es tm e nt pr o p e rty i s r eco gni se d in the co n so lid a t e d s t a t e m e nt o f co mpr e h e n s iv e in co m e on a s tr a ight lin e b as i s o v e r the term of the l ease .
Int e r es t in co m e i s r eco gni se d in th e co n so lid a t e d s t a t e m e nt of co mpr e h e n s iv e in co m e u s ing the e ff ec tiv e int e r es t m e th o d.
A ll ex p e n ses are r eco gni se d in the co n so lid a t e d s t a t e m e nt o f co mpr e h e n s iv e in co m e on the acc ru a l b as i s .
T h e G r o up assesse d a nd a ppli e d th e s h o rt-t e rm l ease r eco gniti o n exe mpti o n und e r I FRS 16 , “ Leases ”. Lease p a ym e nt s a r e r eco gni se d in the co n so lid a t e d s t a t e m e nt of co mpr e h e n s iv e in co m e o n a s tr a ight-lin e b as i s over the t e rm of the lease.
The G r oup’s o t he r assets a r e t es t ed for impai r men t wheneve r even t s or changes in ci r cums t ances indica t e t ha t the ca rr ying amount may not be r ecove r able . An impai r men t loss is r ecognised f o r the amoun t by which t he asse t ’s ca rr ying amoun t exceeds i t s r ecove r able amoun t. The r ecove r able amoun t is t he highe r of an asse t ’s f ai r value less cos t s of disposal and value in use. Fo r the pu r poses o f assessing impai r men t, asse t s a r e g r ouped at the lowest levels for which t he r e are sepa r a t ely iden t i f iable cash in f lows which a r e la r gely independen t of the cash in f lows fr om o t he r asse t s o r g r oups of assets ( cash - gene r a t ing uni t s ). Non - f inancial asse t s , o t he r t han goodwill t ha t su ff e r ed an impai r men t, a r e r eviewed f o r possible r eve r sal of t he impai r men t at t he end of each r epo rt ing pe r iod .
If in a s ub se qu e nt p e ri o d, th e a m o unt of an imp a irm e nt loss d ec r eases a nd th e d ec r ease ca n be link e d o bj ec tiv e ly to an e v e nt occ urring after the writ e -d o wn, th e writ e -d o wn i s r e v e r se d thr o ugh th e co n so lid a t e d s t a t e m e nt of co mpr e h e n s iv e in co m e .
An impai r men t is r eve r sed only to the ex t en t t ha t the asse t ’s ca rr ying amoun t does not exceed the ca rr ying amoun t t ha t would have been de t e r mined , ne t of dep r ecia t ion or amo rt isa t ion , i f no impai r men t loss had been r ecognised .
F in a n c i a l asse t s a nd li a biliti es a r e o ff se t a nd the n e t a m o unt i s r e p o rt e d in the co n so lid a t e d s t a t e m e nt of fin a n c i a l p os iti o n wh e n e v e r the Group h as a l e g a lly e nf o r cea bl e right to set o ff the r eco gni se d a m o unt s and th e r e i s a n int e nti o n to se ttl e o n a net b as i s or r ea li se th e asset a nd se ttl e the li a bility s imult a n eo u s ly.
F un c ti o n a l a nd pr ese nt a ti o n c urr e n c y
It ems included in t he f inancial s t a t emen t s of each of the G r oup’s en t i t ies a r e measu r ed using the f unc t ional cu rr ency o f the p r ima r y economic envi r onmen t in which t he G r oup ope r a t es .
T h e s ub s idi a ri es’ fun c ti o n a l c urr e n c i es a r e di sc l ose d in n o t e 1 t o the fin a n c i a l s t a t e m e nt s . The co n so lid a t e d fin a n c i a l s t a t e m e nt s a r e pr ese nt e d in U . S . Do ll a r s , r o und e d t o the n ea r es t d o ll a r.
2) MATERIAL A CCO UNTIN G PO LI C I ES ( Co nt ’ d)
n) F o r e i gn currency tr ansac ti ons (Cont’d)
T r a n sac ti o n s and b a l a n ces
Fo r eign cu rr ency tr ansac t ions a r e conve rt ed in t o U . S . Dolla r s using t he exchange r a t es a t t he da t es o f the tr ansac t ions . Fo r eign exchange gains and losses r esul t ing fr om the se tt lemen t o f such tr ansac t ions , and fr om the tr ansla t ion of mone t a r y asse t s and liabili t ies denomina t ed in f o r eign cu rr encies at yea r end exchange r a t es , a r e gene r ally r ecognised in p r o f i t or loss . They a r e de f e rr ed in equi t y i f they r ela t e to quali f ying cash f low hedges and quali f ying net inves t men t hedges or a r e a ttr ibu t able to part of the ne t inves t men t in a foreign ope r a t ion .
Fo r e ign exc h a ng e g a in s a nd losses th a t r e l a t e t o b o rr o wing s a r e pr ese nt e d in th e co n so lid a t e d s t a t e m e nt of co mpr e h e n s iv e in co m e , within fin a n ce costs. A ll other f o r e ign exc h a ng e g a in s a nd losses a r e pr ese nt e d in th e co n so lid a t e d s t a t e m e nt o f co mpr e h e n s iv e in co m e on a net b as i s within o th e r g a in s /(l osses ).
Non - mone t a r y i t ems t ha t a r e measu r ed at f ai r value in a f o r eign cu rr ency a r e tr ansla t ed using the exchange r a t es a t t he date when t he fair value was de t e r mined . T r ansla t ion di ff e r ences on asse t s and liabili t ies ca rr ied at f ai r value are r epo rt ed as pa rt of the f ai r value gain o r loss .
G r o up co mp a ni es
The r esul t s and f inancial position of f o r eign ope r a t ions ( none o f which has t he cu rr ency of a hype r in f la t iona r y economy ) that have a f unc t ional cu rr ency di ff e r en t from t he p r esen t a t ion cu rr ency a r e tr ansla t ed in t o the p r esen t a t ion cu rr ency as f ollows :
asse t s and liabili t ies for each s t a t emen t of financial position p r esen t ed are tr ansla t ed at the closing r a t e at the da t e of t ha t balance shee t;
income and expenses f o r each s t a t emen t of comp r ehensive income a r e tr ansla t ed at ave r age exchange r a t es ( unless t his is not a r easonable app r oxima t ion of the cumula t ive e ff ec t o f the r a t es p r evailing on the tr ansac t ion da t es , in which case income and expenses a r e tr ansla t ed a t the da t es of t he tr ansac t ions ); and ,
a ll r es ulting exc h a ng e diff e r e n ces a r e r eco gni se d in o th e r co mpr e h e n s iv e in co m e .
On co n so lid a ti o n, exc h a ng e diff e r e n ces a ri s ing fr o m th e tr a n s l a ti o n of a ny net inv es tm e nt in f o r e ign e ntiti es , and of b o rr o wing s a nd o th e r fin a n c i a l in s trum e nt s d es ign a t e d as h e dg es o f s u c h inv es tm e nt s , a r e r eco gni se d in o th e r co mpr e h e n s iv e in co m e . W h e n a f o r e ign o p e r a ti o n i s so ld or a ny b o rr o wing s f o rming p a rt of th e n e t inv es tm e nt a r e r e p a id, th e assoc i a t e d exc h a ng e diff e r e n ces a r e r ec l ass ifi e d t o pr o fit or l oss , as p a rt o f th e g a in or l oss on sa l e .
Goodwill and f ai r value ad j us t men t s a r ising on t he acquisi t ion o f a f o r eign ope r a t ion a r e tr ea t ed as asse t s and liabili t ies o f t he f o r eign ope r a t ion and tr ansla t ed at the closing r a t e .
T r a n s l a ti o n r ese rv e
Asse t s and liabili t ies o f the Group’s non - U . S . Dolla r f unc t ional cu rr ency subsidia r ies a r e tr ansla t ed in t o U . S . Dollars at the closing exchange r a t es a t t he r epo rt ing da t e . Revenues and expenses are tr ansla t ed at the ave r age exchange r a t es f o r the year. All cumula t ive di ff e r ences fr om t he tr ansla t ion o f the equi t y o f f o r eign subsidia r ies r esul t ing fr om changes in exchange r a t es a r e included in a sepa r a t e cap t ion wi t hin equi t y wi t hou t a ff ec t ing income .
o) R e l a t ed pa rti es
Rela t ed pa rt ies a r e individuals and en t i t ies whe r e the individual or en t i t y has the abili t y , di r ec t ly or indi r ec t ly , t o con tr ol t he o t he r pa rt y o r exe r cise signi f ican t in f luence ove r the o t he r pa rt y in making f inancial and ope r a t ing decisions .
p) Seg m ent report i ng
T h e Group’s o p e r a ting bu s in esses a r e o rg a ni se d a nd m a n a g e d se p a r a t e ly acco rding to g eo gr a phi ca l a r ea , with eac h se gm e nt r e pr ese nting a s tr a t e gi c bu s in ess unit th a t se rv es a diff e r e nt m a rk e t. F in a n c i a l inf o rm a ti o n on bu s in ess se gm e nt s i s pr ese nt e d in note 11 of the co n so lid a t e d fin a n c i a l s t a t e m e nt s .
q) T a x at i on
Taxa t ion on ne t p r o f i t be f o r e t axa t ion for the yea r comp r ises bo t h cu rr en t and de f e rr ed t ax .
Cu rr en t t ax is t he expec t ed income t ax payable on the t axable income f o r t he yea r, using t ax r a t es enac t ed o r subs t an t ially enac t ed at the r epo rt ing da t e and any ad j us t men t to tax payable in r espec t o f p r evious yea r s in the coun tr ies whe r e t he Pa r en t Company and i t s subsidia r ies ope r a t e and gene r a t e t axable income .
The G r oup accoun t s f o r income taxes in acco r dance wi t h IAS 12 , “I ncome Taxes ,” which r equi r es that a deferred t ax liabili t y be r ecognised f o r all t axable t empo r a r y di ff e r ences and a de f e rr ed t ax asset be r ecognised for an en t e r p r ise’s deduc t ible t empo r a r y di ff e r ences , ope r a t ing losses , and t ax c r edi t ca rr y -f o r wa r ds . A de f e rr ed t ax asse t o r liabili t y is measu r ed using t he ma r ginal tax r a t e t ha t is expec t ed to apply to the last dolla r s of t axable income in f u t u r e years. The e ff ec t s of enac t ed changes in t ax laws or r a t es a r e r ecognised in t he pe r iod that includes t he enac t men t da t e .
| Leasehold improvement | Office equipment | Vehicles | Total | |||||
| Cost: | ||||||||
| At 29 February 2024 | 20,281 | 48,036 | 55,392 | 123,709 | ||||
| Additions | - | - | 6,804 | 6,804 | ||||
| At 31 August 2024 | 20,281 | 48,036 | 62,196 | 130,513 | ||||
| Depreciation: | ||||||||
| At 29 February 2024 | 20,281 | 42,851 | 55,392 | 118,524 | ||||
| Charge for 1 March – 31 August 2024 | - | 662 | 662 | |||||
| At 31 August 2024 | 20,281 | 43,513 | 55,392 | 119,186 | ||||
| Net book value: | ||||||||
| At 31 August 2024 | $ - | $ 4,523 | $ 6,804 | $ 11,327 | ||||
| At 29 February 2024 | $ - | $ 5,185 | $ - | $ 5,185 |
| 4) | INV ES TM E NT PROPER TY | ||||||||
| 2024 | 2023 | ||||||||
| Balance at 1 March | 586,991 | 600,214 | |||||||
| Effects of translations | 34,224 | 3,677 | |||||||
| Balance at 31 August | $ 621,215 | $ 603,891 | |||||||
Investment property comprises condominium units at The Prime 11 Condominium in Bangkok, Thailand. As at 31 August 2024, it had a fair value of THB 21,000,000 (2023: THB 21,000,000).
| 5) | F INAN C IAL A SSE T S AT FAIR VALU E TH RO U G H PROF IT OR LOSS | ||||||||
| 31-Aug-24 | 31-Aug-23 | ||||||||
| Investment in Phillip Investment Fund | - | 168,245 | |||||||
| Investment in private equity | - | 42,349 | |||||||
| $ - | $ 210,594 | ||||||||
In financial year end 29 February 2024, the 215,024.30 units in Philip Money Market Fund were sold, resulting in a gain of $5,412
On 25 August 2021, the Company acquired 180,000 Class A Common Shares of BRM Agri Cambodia Limited, a company incorporated in Canada. During the financial year end 29 February 2024, loss on revaluation of investment in private equity amounted to $9,492. On 29 February 2024, one of the Directors bought the shares from the Company for $32,857.
On 24 A ugu s t 2021, Meyer T h a il a nd e nt e r e d int o a Loa n A gr ee m e nt with F ir s t A id T r a ining Ba ngk o k Co . L td. (“FATB”) a m o unting to THB 1 , 500 , 000 . The loan ea rn s int e r es t a t a r a t e o f 1 % per a nnum.
T h e l oa n was du e o n 24 A ugu s t 2023 a nd sec ur e d by 100% of FATB’s s h a r es . T h e l oa n w as i ss u e d by Me y e r BV I on b e h a lf of Meyer T h a il a nd.
Du r ing t he yea r end 29 February 2024, t he loan was paid in f ull .
The r ela t ed in t e r company balances we r e elimina t ed during consolida t ion .
O th e r r ece iv a bl es p e rt a in t o e mpl o y ee a dv a n ces a nd acc ru e d int e r es t fr o m third p a rti es .
The G r oup was cha r ged $ 15, 356 ( 2023 : $ 16, 631 ) in accoun t ing fees by Adminis tr a t ion Ou t sou r cing Co ., Ltd, a company r ela t ed by way of common di r ec t o r ship , o f which $2 , 281 ( 2023 : $2,695) r emained ou t s t anding as a t half yea r end .
D uring the half y ea r, the G r o up in c urr e d dir ec t o r s’ f ees , in c lu s iv e o f sc h oo l f ees a nd acco mm o d a ti o n a ll o w a n ce , a m o unting t o $ 131,275 ( 2023 : $ 171,027).
As at 31 August 2024 , due fr om di r ec t o r amoun t ed to $436 , 067 ( 2023 : $418 , 753 ).
All amoun t s a r e unsecu r ed , in t e r es t-fr ee and r epayable on demand .
Share cap i ta l
Authorised
T h e Pa r e nt Co mp a ny is a uth o ri se d t o issue an unlimit e d numb e r o f no p a r value shares of a single c l ass .
| Issued and fully paid: | 31-Aug-24 | 31-Aug-23 | ||
| 11,433,433 (2023: 11,433,433) shares of no par value per share. | $ 913,496 | $ 913,496 |
8) S HA RE C A P ITAL AND T RE A S U R Y S HA RES ( Co nt ’ d)
Eac h s h a r e o f the Pa r e nt Co mp a ny co nf e r s up o n th e s h a r e h o ld e r:
The f ollowing was ag r eed by the pa rt ies under t he Se tt lemen t Ag r eemen t:
Treasury shares recognised by the Group for the return of the Parent Company’s shares amounted to $318,162 (2023: $318,162).
The r e is no mains tr eam t axa t ion in t he B r i t ish Vi r gin I slands . The Pa r en t Company and Meye r BVI a r e not sub j ec t t o any f o r ms o f t axa t ion in t he B r i t ish Vi r gin I slands , including income , capi t al gains and wi t hholding t axes .
Me y e r T h a il a nd a nd N ih o n Wea lth Ma n a g e m e nt Co mp a ny L imit e d a r e s ubj ec t t o T h a il a nd gr a du a t e d s t a tut o ry in co m e tax at a r a t e o f 0 - 15 % ( 2023 : 0 - 15 %) o n profit b e f o r e t ax .
The current tax expense included in the half year consolidated statement of comprehensive income was $nil (2023 : $nil).
T h e G r o up had no d e f e rr e d tax asse t s o r li a biliti es as at the r e p o rting date.
Basic ea r nings pe r sha r e is calcula t ed by dividing t he profit a ttr ibu t able to equi t y holde r s of the Pa r en t Company by t he weigh t ed ave r age numbe r o f sha r es in issue du r ing the yea r, excluding tr easu r y sha r es .
| 31-Aug-24 | 31-Aug-23 | |||
| Earnings/(Losses) attributable to equity holders of the Parent Company | $13,270 | $(93,790) | ||
| Weighted average number of shares in issue | 11,433,433 | 11,433,433 | ||
| Adjusted for weighted average number of: | ||||
| - treasury shares | (322,000) | (322,000) | ||
| Weighted average number of shares in issue and for basic earnings for share | 11,111,433 | 11,111,433 | ||
| Basic earnings/(losses) per share | $0.00119 | $(0.00844) |
10) EARNINGS PER S HA RE ( C ont’d)
b) Diluted
D ilut e d ea rning s p e r s h a r e i s ca l c ul a t e d by a dju s ting th e w e ight e d a v e r a g e numb e r o f s h a r es o ut s t a nding to ass um e co nv e r s i o n of a ll dilutiv e p o t e nti a l s h a r es . As at 31 August 2024 a nd 31 August 2023 , the Pa r e nt Co mp a ny had n o s h a r e w a rr a nt s or s h a r e o pti o n s as p o t e nti a l dilutiv e s h a r es . For the s h a r e o pti o n s a nd w a rr a nt s , if any, a ca l c ul a ti o n i s done t o d e t e rmin e the numb e r o f s h a r es that co uld h a v e b ee n ac quir e d a t f a ir v a lu e based on the m o n e t a ry v a lu e of the s ub sc ripti o n right s a tt ac h e d t o o ut s t a nding s h a r e options a nd w a rr a nt s . T h e numb e r o f s h a r es ca l c ul a t e d i s co mp a r e d with th e numb e r of s h a r es th a t w o uld h a v e been i ss u e d ass uming th e exercise of the share o pti o n s a nd w a rr a nt s .
| 31-Aug-24 | 31-Aug-23 | |||
| Earnings/(Losses) attributable to equity holders of the Parent Company | $ 13,270 | $ (93,790) | ||
| Weighted average number of shares in issue and for diluted earnings for share | 11,111,433 | 11,111,433 | ||
| Diluted earnings/(losses) per share | $ 0.00119 | $ (0.00844) |
11) SEG M E NTAL IN FOR MATI O N
T h e G r o up h as tw o r e p o rt a bl e se gm e nt s b ase d o n g eo gr a phi ca l a r eas wh e r e th e G r o up o p e r a t es a nd th ese w e r e as f o ll o w s :
B riti s h V irgin I s l a nd s (“ BV I”) – wh e r e the Pa r e nt Co mp a ny a nd Me y e r BV I a r e d o mi c il e d. T h e Pa r e nt Co mp a ny se rv es as th e inv es tm e nt h o lding co mp a ny o f the G r o up and Me y e r BVI pr o vid es wealth m a n a g e m e nt a nd a dvi so ry se rvi ces .
T h a il a nd – wh e r e Meyer T h a il a nd i s d o mi c il e d a nd pr o vid es m a rk e ting and eco n o mi c co n s ulting se rvi ces to th e Group and where N ih o n Wealth Ma n a g e m e nt Co mp a ny L imit e d i s d o mi c il e d and pr o vid es pr o p e rty r e nt a l se rvi ces .
T h e r e p o rt a bl e se gm e nt a l r e v e nu e , o th e r pr o fit a nd l oss di sc l os ur es , asse t s a nd li a biliti es w e r e as f o ll o w s :
R e v enue
| 31-Aug-24 | 31-Aug-23 | |||||||
| Total segment revenue | Inter-segment revenue | Revenue from external customers | Total segment revenue | Inter-segment revenue | Revenue from external customers | |||
| BVI | 502,905 | - | 502,905 | 521,434 | - | 521,434 | ||
| Thailand | 96,399 | (95,716) | 683 | 98,101 | (96,185) | 1,916 | ||
| Total | $599,304 | $(95,716) | $503,588 | $619,535 | $(96,185) | $523,350 |
The r evenue be t ween segmen t s is ca rr ied out at a r m’s leng t h . Revenues fr om t wo cus t ome r s of the BV I segmen t r ep r esen t app r oxima t ely 64% ( 2023 : 58%) o f t he G r oup’s t o t al r evenues .
11) SEG M E NTAL IN FOR MATI O N ( C ont’d)
Ot he r p r o fit and l oss d i sc l osu r es
| 31-Aug-24 | 31-Aug-23 | |||||||
| Commission expense | Depreciation | Income tax | Commission expense | Depreciation | Income tax | |||
| BVI | 189,945 | 415 | - | 196,371 | 252 | - | ||
| Thailand | 1,720 | 247 | - | 1,672 | 128 | - | ||
| Total | $ 191,665 | $ 662 | $ - | $ 198,043 | $ 380 | $ - |
Assets
| 31-Aug-24 | 31-Aug-23 | |||||
| Total Assets | Total Assets | |||||
| BVI | 1,692,391 | 1,836,398 | ||||
| Thailand | 695,595 | 613,693 | ||||
| Total | $2,387,986 | $2,450,091 |
I n t e r segmen t asse t s amoun t ing t o $1,547,211 (2023: $1,553,490) were al r eady elimina t ed in t he t o t al assets pe r segmen t above .
Liabilities
| 31-Aug-24 | 31-Aug-23 | |||||
| Total Liabilities | Total Liabilities | |||||
| BVI | 1,065,906 | 1,123,708 | ||||
| Thailand | 13,044 | 16,290 | ||||
| Total | $1,078,950 | $1,139,998 |
I n t e r segmen t liabili t ies amoun t ing t o $1,427,156 (2023: $1,435,117) we r e al r eady elimina t ed in t he t o t al liabili t ies per segmen t above .
12) F INAN C IAL R I S K MANA GE M E NT
The G r oup has exposu r e to a va r ie t y o f f inancial risks that a r e associa t ed wi t h i t s f inancial ins tr umen t s . The mos t impo rt an t t ypes of f inancial r isk to which t he Group is exposed are market risk, c r edi t r isk and liquidi t y r isk .
The G r oup’s ove r all risk managemen t p r og r am is es t ablished to iden t i f y and analyse t his r isk , t o set app r op r ia t e r isk limi t s and con tr ols , and t o moni t o r risks and adhe r ence t o limi t s in an e ff o rt t o minimise po t en t ial adve r se e ff ec t s on t he G r oup’s f inancial pe rf o r mance .
Market r isk is t he r isk t ha t the f ai r value or f u t u r e cash f lows of a f inancial ins tr umen t will f luc t ua t e as a result of ma r ke t f ac t o r s which includes in t e r es t rate r isk and cu rr ency risk.
I n t e r es t r a t e r isk
T h e fin a n c i a l in s trum e nt s ex p ose d t o int e r es t rate risk co mpri se cash a nd cas h e quiv a l e nt s . T h e G r o up is ex p ose d t o int e r es t r a t e cas h fl o w ri s k on th ese fin a n c i a l in s trum e nt s , which ea rn int e r es t at fl oa ting int e r es t r a t es th a t are reset as m a rk e t r a t es c h a ng e .
12) F INAN C IAL R I S K MANA GE M E NT ( C ont’d)
I n t e r es t r a t e r isk ( C ont’d)
A sensi t ivi t y analysis was pe rf o r med wi t h respect to the in t e r es t- bea r ing f inancial ins tr umen t s and managemen t no t ed that t he an t icipa t ed in t e r es t r a t e changes would have no ma t e r ial impac t on t he net assets o f the G r oup .
Fo r e ign c urr e n c y ri s k
T h e G r o up m a y inv es t in fin a n c i a l in s trum e nt s and e nt e r int o tr a n sac ti o n s d e n o min a t e d in c urr e n c i es o th e r th a n it s fun c ti o n a l c urr e n c y. Co n se qu e ntly, th e G r o up i s ex p ose d t o the risk that the exc h a ng e r a t e of it s c urr e n c y r e l a tiv e to o th e r foreign c urr e n c i es may c h a ng e in a m a nn e r that h as an a dv e r se a ff ec t on the v a lu e of that p o rti o n of the G r o up ’s asse t s or li a biliti es d e n o min a t e d in c urr e n c i es o th e r th a n th e U . S . Dollar.
| 31-Aug-24 | 31-Aug-23 | ||||
| Fair value | % of net assets | Fair value | % of net assets | ||
| Thailand Baht | $1,136,462 | 86.82% | $1,064,001 | 81.22% | |
| Japanese Yen | $309,819 | 23.67% | $501,438 | 38.27% | |
| Singaporean Dollar | - | 0.00% | $168,245 | 12.84% | |
| Euro | $16,303 | 1.25% | $14,625 | 1.12% | |
| United Kingdom Pound | $377,662 | 28.85% | $142,145 | 10.85% | |
| $1,840,246 | 140.58% | $1,890,454 | 144.30% | ||
The amoun t s in t he above t able a r e based on the net ca rr ying value o f mone t a r y assets and liabili t ies .
T h e f o ll o wing b e l o w s umm a ri ses the se n s itivity of the net assets t o c h a ng es in f o r e ign exc h a ng e m o v e m e nt s at 31 August 2024 a nd 31 August 2023 . The a n a ly s i s is based on the ass umpti o n that the r e l e v a nt f o r e ign exc h a ng e r a t e in c r ease d/d ec r ease d a g a in s t th e U . S . Do ll a r by 5 %, with all o th e r v a ri a bl es h e ld co n s t a nt. T hi s r e pr ese nt s m a n a g e m e nt ’s b es t es tim a t e o f a r easo n a bl e p oss ibl e s hift in the f o r e ign exc h a ng e rates, h a ving regard t o hi s t o ri ca l v o l a tility of those r a t es .
| 31-Aug-24 | 31-Aug-23 | |||
| Thailand Baht | $56,823 | $53,200 | ||
| Japanese Yen | $15,491 | $25,072 | ||
| Singaporean Dollar | $0 | $8,412 | ||
| Euro | $815 | $731 | ||
| United Kingdom Pound | $18,883 | $7,107 | ||
| $92,012 | $94,522 |
| b) | Credit risk |
C r edi t r isk r ep r esen t s t he accoun t ing loss t ha t would be r ecognised at the r epo rt ing date i f f inancial ins tr umen t coun t e r pa rt ies f ailed to perform as con tr ac t ed .
T h e ca rrying a m o unt s o f fin a n c i a l asse t s b es t r e pr ese nt the m ax imum c r e dit ri s k ex p os ur e a t the r e p o rting d a t e .
12 ) F I NANC I AL R I SK M ANAGE M ENT ( Con t ’d )
As at 31 August 2024 a nd 31 August 2023 , th e Group’s fin a n c i a l asse t s ex p ose d t o c r e dit risk a m o unt e d t o th e f o ll o wing:
| 31-Aug-24 | 31-Aug-23 | ||
| Cash and cash equivalents | 1,154,431 | 1,034,152 | |
| Trade receivables (net of allowance for doubtful accounts of $8,572 (2023: $8,572) |
68,018 | 79,034 | |
| Financial assets at fair value through profit or loss | - | 210,594 | |
| Loans and other receivables | 31,688 | 44,461 | |
| Due from director | 436,067 | 418,753 | |
| $1,690,204 | $1,786,994 |
T h e ex t e nt of the G r o up ’s ex p os ur e t o c r e dit ri s k in r es p ec t of these fin a n c i a l asse t s a ppr ox im a t es th e ir ca rrying v a lu es as r eco rd e d in th e G r o up ’s co n so lid a t e d s t a t e m e nt o f fin a n c i a l p os iti o n.
The G r oup inves t s available cash and cash equivalen t s wi t h va r ious banks . The G r oup is exposed t o c r edi t-r ela t ed losses in the even t of non - pe rf o r mance by such coun t e r pa rt ies to f inancial ins tr umen t s , but given t hei r r easonable c r edi t r a t ings , managemen t does not expect any such coun t e r pa rt y t o f ail t o mee t its obliga t ions .
The G r oup’s exposu r e to c r edi t risk is in f luenced mainly by t he individual cha r ac t e r is t ics of each cus t ome r. To r educe exposu r e to c r edi t risk, the G r oup may pe rf o r m ongoing c r edi t evalua t ions on the f inancial condi t ion of i t s cus t ome r s , but gene r ally does no t r equi r e colla t e r al . The Group has signi f ican t exposu r e t o a small numbe r of cus t ome r s , the t wo la r ges t owing $ 13, 525 ( 2023 : $20 , 058 ) as at year end , which r ep r esen t s 18% ( 2023 : 23 %) of g r oss tr ade r eceivables . The G r oup is exposed to c r edi t-r ela t ed losses in t he even t of non - pe rf o r mance by t hese cus t ome r s . The exposu r e t o c r edi t risk is r educed as t hese cus t ome r s have a good wo r king r ela t ionship with t he G r oup and managemen t does not expect any signi f ican t cus t ome r t o f ail t o mee t its obliga t ions .
The G r oup is exposed t o credit risk on due fr om di r ec t o r t o the ex t en t t ha t t he coun t e r pa rt y t o t his f inancial ins tr umen t may no t be able to f ul f il his obliga t ions . Howeve r, the G r oup does no t expec t this coun t e r pa rt y t o fail t o mee t his obliga t ions .
Fo r some tr ade r eceivables , t he Group may ob t ain secu r i t y in the f o r m of gua r an t ees , deeds o f unde rt aking or le tt e r s o f c r edi t which can be called upon i f the coun t e r pa rt y is in de f aul t unde r t he t e r ms of t hei r ag r eemen t.
T h e G r o up a ppli es the I FRS 9, “ F in a n c i a l In s trum e nt s ” g e n e r a l a ppr oac h t o m eas uring ECL based on th e full thr ee - s t a g e m o d e l.
The Group de t e r mined the ECL based on p r obabili t y - weigh t ed outcome, the t ime value of money and r easonable and suppo rt able in f o r ma t ion t ha t is available wi t hou t undue cos t o r e ff o rt a t the r epo rt ing date abou t pas t even t s , cu rr en t condi t ions and f o r ecas t of f u t u r e economic condi t ions . The assessmen t also conside r ed bo rr owe r speci f ic in f o r ma t ion .
To m eas ur e ECL , tr a d e r ece iv a bl es h a v e been gr o up e d b ase d on s h a r e d c r e dit ri s k c h a r ac t e ri s ti cs a nd the d a y s p as t due.
12 ) F I NANC I AL R I SK M ANAGE M ENT ( Con t ’d )
b) Credit risk ( C ont’d)
iii) I mpai r men t of f inancial asse t s
T h e ex p ec t e d loss r a t es a r e based o n the p a ym e nt pr o fil es of r e v e nu es o v e r a p e ri o d of 36 mon t hs be f o r e 31 August 2024 a nd 31 August 2023 , r espec t ively , and t he co rr esponding his t o r ical c r edi t losses expe r ienced wi t hin t his pe r iod . The his t o r ical loss r a t es a r e ad j us t ed t o r e f lec t cu rr en t and f o r wa r d - looking in f o r ma t ion on mac r oeconomic f ac t o r s a ff ec t ing the abili t y of t he cus t ome r s t o se tt le t he r eceivables .
On th a t b as i s , the l oss a ll o w a n ce as a t 31 August 2024 a nd 31 August 2023 were d e t e rmin e d as f o ll o w s :
| Expected | ||||
| Balance at | Credit | Loss Allowance at | ||
| 31-Aug-24 | Loss Rate | 31-Aug-24 | ||
| Trade receivables | $76,590 | 11.19% | $8,572 | |
| Expected | ||||
| Balance at | Credit | Loss Allowance at | ||
| 31-Aug-23 | Loss Rate | 31-Aug-23 | ||
| Trade receivables | $87,606 | 9.78% | $8,572 |
T h e c l os ing l oss a ll o w a n ce for tr a d e r ece iv a bl es as at 31 August 2024 a nd 31 August 2023 r eco n c il e to the o p e ning l oss a ll o w a n ce as f o ll o w s :
| 31-Aug-24 | 31-Aug-23 | ||
| Opening balance | 8,572 | 8,572 | |
| Increase/(decrease) in loss allowance | - | - | |
| Closing balance | $8,572 | $8,572 |
T r ade r eceivables are w r i tt en off when t he r e is no r easonable expec t a t ion o f r ecove r y . I ndica t o r s t ha t t he r e is no r easonable expec t a t ion of r ecove r y include , amongs t o t he r s , the failure of a deb t o r t o engage in a r epaymen t plan wi t h the G r oup , and a f ailu r e t o make con tr ac t ual paymen t s f o r a pe r iod of g r ea t e r t han 365 days pas t due.
Imp a irm e nt l osses on tr a d e r ece iv a bl es a r e pr ese nt e d as n e t imp a irm e nt l osses within o p e r a ting pr o fit. S ub se qu e nt r eco v e ri es o f a m o unt s pr e vi o u s ly writt e n o ff a r e c r e dit e d a g a in s t the same lin e it e m.
While cash and cash equivalen t s , due fr om di r ec t o r and loans and other r eceivables a r e also sub j ec t t o the impai r men t r equi r emen t s , the iden t i f ied impai r men t loss was imma t e r ial .
c) Li qu i d i ty risk
L iquidity risk i s th e ri s k th a t th e G r o up will n o t b e a bl e to meet its fin a n c i a l o blig a ti o n s as th e y f a ll due. T h e Group’s a ppr oac h t o m a n a ging liquidity i s t o e n s ur e , as far as p oss ibl e , that it will a lw a y s h a v e s uffi c i e nt liquidity to m ee t its li a biliti es wh e n du e , under b o th normal and s tr esse d co nditi o n s , with o ut incurring un acce pt a bl e l osses or ri s king d a m a g e to th e G r o up ’s r e put a ti o n. T ypi ca lly, th e G r o up e n s ur es th a t it h as s uffi c i e nt cash on d e m a nd to m ee t ex p ec t e d o p e r a ti o n a l n ee d s as th e y a ri se .
The G r oup’s f inancial liabili t ies a r e expec t ed t o be se tt led wi t hin a yea r from the r epo rt ing da t e .
13) FAIR VALU E IN FOR MATI O N
T h e f a ir v a lu e of assets a nd li a biliti es in ac tiv e m a rk e t s is b ase d o n quoted m a rk e t pri ces on the r epo rt ing date.
An ac tiv e m a rk e t is a m a rk e t in which tr a n sac ti o n s for th e asset or li a bility t a k e pl ace with s uffi c i e nt fr e qu e n c y a nd v o lum e t o pr o vid e pri c ing inf o rm a ti o n o n an o ng o ing b as i s .
Fo r ce rt ain o t he r f inancial ins tr umen t s , including cash and cash equivalen t s , tr ade r eceivables , loans and o t he r r eceivables , due fr om di r ec t o r, tr ade payables and o t he r payables and acc r ued expenses , the ca rr ying amoun t s app r oxima t e f ai r value due to the immedia t e or sho rt-t e r m na t u r e of these f inancial ins tr umen t s .
No n-fin a n c i a l asse t s
At the end of each r epo rt ing pe r iod , t he Di r ec t o r s upda t e t hei r assessmen t of t he f ai r value, t aking in t o accoun t the most r ecen t independen t valua t ion . The Di r ec t o r s de t e r mine a p r ope rt y’s value wi t hin a r ange of r easonable f ai r value es t ima t es . The bes t evidence of f ai r value is cu rr en t prices in an ac t ive ma r ke t f o r simila r p r ope rt ies .
The G r oup engages an ex t e r nal , independen t and quali f ied app r aise r t o de t e r mine the fair value of inves t men t p r ope rt y . As at 31 August 2024 a nd 31 August 2023 , t he f ai r value of inves t men t p r ope rt y has been based on an independen t valua t ion report by Ame r ican App r aisal ( Thailand ) Ltd. da t ed 15 June 2021 .
T h e f a ir v a lu e es tim a t e for inv es tm e nt pr o p e rty i s in c lud e d in Level 2 and h as been d e riv e d u s ing the sa l es co mp a ri so n a ppr oac h. T h e k e y input s und e r thi s a ppr oac h a r e the price p e r s qu a r e metre fr o m r ece nt sa l es a nd li s ting s of co mp a r a bl e pr o p e rti es in th e a r ea (l oca ti o n a nd size). A dju s tm e nt s were m a d e for th e diff e r e n ces b e tw ee n the G r o up ’s inv es tm e nt property and th e recent sa l es and li s ting s of pr o p e rti es r e g a rd e d as co mp a r a bl e .
The f ollowing t able shows t he ca rr ying amoun t s and f ai r values o f non -f inancial asse t s , including t hei r levels in t he f ai r value hie r a r chy at 31 August 2024 a nd 31 August 2023 :
| 31-Aug-24 | 31-Aug-23 | ||
| Non-financial assets - Level 2 | |||
| Investment property | $621,215 | $603,891 |
T h e G r o up did not h o ld any n o n-fin a n c i a l assets m eas ur e d a t f a ir value und e r the Le v e l s 1 and 3 hi e r a r c hi es as a t 31 August 2024 a nd 31 August 2023 .
The r e were no signi f ican t inves t men t s tr ans f e rr ed be t ween Levels 1, 2 and 3.
14) C A P ITAL R I S K MANA GE M E NT
T h e G r o up ’s o bj ec tiv es wh e n m a n a ging ca pit a l are:
t o sa f e gu a rd th e G r o up ’s a bility t o co ntinu e as a g o ing co n ce rn; a nd t o pr o vid e a d e qu a t e r e turn s to its s h a r e h o ld e r s .
I n o r de r t o main t ain or balance i t s ove r all capi t al s tr uc t u r e t o mee t its ob j ec t ives , the G r oup is con t inually moni t o r ing the level of sha r e issuance and any dividend decla r a t ion and dis tr ibu t ions t o sha r eholde r s in t he f u t u r e .
15) CO M P A R ATIV E IN FOR MATI O N
Ce rt ain compa r a t ive f igu r es have been r eclassi f ied t o con f o r m wi t h the cu rr en t yea r ’s p r esen t a t ion .
