notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
25 ASSETS CLASSIFIED AS HELD FOR SALE
(a)
On 1 May 2014, the Company’s wholly-owned subsidiary, Wasco Engineering Equipment Pte. Ltd. ("WEE") entered into a finance lease agreement on compressor
units as a manufacturer lessor. The lease will commence upon completion of commissioning of the compressors, which is expected to take place within the
next twelve months. Upon commencement of the lease, the compressors will be derecognised with the resulting gain or loss charged to the statement of
comprehensive income.
Pursuant to MFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”, the carrying amounts of the compressors have been classified as assets
held for sale.
(b)
On 26 January 2011 and 31 January 2011, the Company’s wholly-owned indirect subsidiary, Yadong-Anti Corrosion (Int) Co. Ltd. (“YAC”), commenced the
disposal of the shares and assets held in a joint venture company, Arabian Yadong Coating Co. Ltd. (“AYC”) pursuant to two (2) separate Sale and Purchase
Agreements dated 26 January 2011:
(i)
to dispose YAC’s 60,000 shares of Saudi Riyals 50.00 each (representing entire 50% equity interest) in AYC to Arabian Pipes Co., (“APC”), for a total
consideration of USD2,552,000; and
(ii)
to dispose the machinery and equipment for the external coating of steel pipes, including auxiliary equipment, industrial utilities, attachments, tooling,
spare parts and as available, all designs and drawings, plans, manufacturing data, technical publications and other documents related thereto to APC,
for a total consideration of USD900,000.
On 25 February 2015, the Group completed the disposal of the shares and the disposal of the machinery and equipment was completed in the financial year
ended 31 December 2011.
Details of the assets classified as held for sale are as follows:
Group
2014
2013
RM’000
RM’000
Property, plant and equipment
26,885
-
Investment in a joint venture
4,488
4,223
31,373
4,223
133
Wah Seong Corporation Berhad • Annual Report 2014
