APM AUTOMOTIVE HOLDINGS BERHAD
110
NOTES TO THE
FINANCIAL STATEMENTS
36. Capital management
The Group’s primary objectives when managing capital are to safeguard the Group’s ability to provide returns for
shareholders and benefits for other stakeholders, by pricing products and services commensurately with the level
of risks and by securing access to finance at a reasonable cost.
The Group reviews and manages its capital structure maintaining a balance between the expected risk against
expected return and makes relevant adjustment to the capital structure in the light of changes in economic
conditions. As at 31 December 2013 and 2014, the Group was in net cash position.
Group
2014
2013
RM’000
RM’000
Other investments (Note 12)
78,506
-
Cash and cash equivalents (Note 15)
279,384
306,416
Less: Loans and borrowings (Note 18)
(37,029)
(12,847)
Net cash
320,861
293,569
There were no changes in the Group’s approach to capital management during the year.
37. Significant changes in accounting policies
37.1 Accounting for property, plant and equipment
During the year, the Group changed its accounting policy with respect to the subsequent measurement
of property, plant and equipment (for land and buildings) from the cost model less depreciation and
impairment loss to the revaluation model less depreciation and impairment loss, with differences in
fair value and carrying amount recognised in other comprehensive income. The Group believes that
subsequent measurement using the revaluation model provides more relevant information about the
financial performance of these assets and assists users to better understand the risks associated with
these assets.
The revaluation of land and buildings is derived as follows:-
RM’000
Revaluations surplus (Note 27)
115,928
Accumulated depreciation (Note 3)
(57,386)
58,542
37.2 Accounting for investment property
During the year, the Group changed its accounting policy with respect to the subsequent measurement of
investment property from the cost model to the fair value model, with changes in fair value recognised in
profit or loss. The Group believes that subsequent measurement using the fair value model provides more
relevant information about the financial performance of these assets and assists users to better understand
the risks associated with these assets.
The change in accounting policy with respect to accounting for investment property was applied
retrospectively and had an insignificant impact on earnings per share.
