Short term application guidance on SLFRS 1 The following guidance can be used in complying with the requirements of SLFRS

1 as at the date of transition. 1. Fully depreciated assets at the date of transition: PPE that are fully depreciated as at the date of transition, but still have a considerable remaining period of useful live (Re-assessed Useful Life from the date of transition) can be restated by using any one or combination of the methods provided below. In determining the application of this guidance, management should exercise judgment taking the materiality, period beyond the date of transition such item of PPE can be used, and the nature of the item under consideration. Method 1: When the cost of the item of PPE or component is knownWhen the cost of the item or component of which the carrying value is zero is determinable or known, entities may restate item or component of the item to the carrying value of the same had such item was depreciated over the Re-assessed Useful Life. In this connection Re-assessed Useful life means the useful life over which the item of the PPE or component remaining to be consumed by the entity from the date of transition. e.g. An item that originally has a cost of 1000 and bought at the beginning of the financial year 2007 had been depreciated over 4 years prior to the application of new SLAS (2012). It had a zero carrying value at the date of transition. The management determined that the item of PPE concerned has a Re-assessed Useful Life of 4 years. Accordingly, the item of PPE can be restated to 500 and depreciated over 4 years from the date of transition. (Total useful life= 4+4 years, hence the depreciation charge for the first 4 years should have been 4x (1000/(4+4)). Then the carrying value after restatement should be 1000 500). Method 2: When the cost of the item of PPE or component is not knownWhen the cost of the item or component of which the carrying value is zero is not determinable or known, entities may restate the item of PPE or component of the item to the carrying value by obtaining an independent valuation (effective on or close to the date of transition) of the item or component concerned. If it is not practicable to obtain a valuation effective on or close to the date of transition, amounts determined based on a valuation carried out before the date of authorization of the First SLFRS Financial Statements can be used with appropriate backward calculations to arrive at required amounts to restate the item or component of PPE. In order to re-assess the remaining useful life in this connection, management may use an independent valuer or expert.

All corresponding adjustment required are recognized directly in retained earnings appropriately explained in the reconciliations required under paragraph 24 of SLFRS 1. 2. Assets that had a carrying value at the date of transition, for which the remaining useful life is significantly different to that prevailed at the date of transition. Items of PPE or components that had a carrying value as at the date of transition, of which the previously assessed useful life was considerably different to re-assessed remaining period of useful live (Re-assessed Useful Life from the date of transition) can be restated by using any one or combination of the methods provided below. In determining the application of this guidance, management should exercise judgment taking the materiality, period beyond the date of transition such item of PPE can be used, and the nature of the item under consideration. Method 1: Depreciate the carrying value as at the date of transition over the reassessed Useful Life from the date of transition. Method 2: Depreciate the carrying value as at the first day of the First SLFRS Reporting Period. e.g For a December year end entity this date is 1 January 2012. For a March year end entity such date is 1 April 2012. All corresponding adjustment required are recognized directly in retained earnings appropriately explained in the reconciliations required under paragraph 24 of SLFRS 1.