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Notes To The Financial Statements

VITROX CORPORATION BERHAD

[649966-K]

For The Financial Year Ended 31 December 2008

2.

SIGNIFICANT ACCOUNTING POLICIES (Cont’d)

2.7 Investments

Subsidiaries

As required by the Companies Act 1965, the Company prepares separate financial statements in addition to the consolidated

financial statements. In the separate financial statements of the Company, investments in subsidiaries are stated at cost

less impairment losses, if any.

Club Memberships

Investment in club memberships is stated at cost less impairment loss, if any.

2.8 Impairment of Assets

The carrying amounts of assets, other than inventories, financial assets within the scope of FRS 139 Financial Instruments:

Recognition and Measurement and investment property stated at fair value, are reviewed at each balance sheet date to

determine whether there is any indication that an item of asset may be impaired. If any such indication exists, the

recoverable amount of the asset, being the higher of its fair value less costs to sell and its value in use, is estimated. Any

excess of the carrying amount of the asset over its recoverable amount represents an impairment loss and is recognised

as an expense in the income statement.

An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount

and it is reversed only to the extent that the increased carrying amount does not exceed the carrying amount that would

have been determined, net of depreciation or amortisation, had no impairment loss been recognised. The reversal is

recognised in the income statement.

2.9 Inventories

Inventories are valued at the lower of cost (determined on the weighted average basis) and net realisable value. Cost

consists of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present

location and condition. Net realisable value is the estimated selling price in the ordinary course of business less the

estimated costs of completion and costs necessary to make the sale.

2.10 Receivables

Receivables are carried at anticipated realisable values. Bad debts are written off when identified. An estimate is made

for doubtful debts based on a review of all outstanding amounts as at the balance sheet date.

2.11 Payables

Payables are recognised at cost which is the fair value of the consideration to be paid in the future for goods and services

received.