2.2.

2 Presentation of the Group Liabilities

A. Presentation of Current Liabilities and Non-Current Liabilities in Consolidated
Statement of Financial Position
MFRS 127.4 stated that consolidated financial statements are the financial statements of a group
in which the assets, liabilities, equity, income, expenses and cash flows of the parent and its
subsidiaries are presented as those of a single economic entity. For the group’s consolidated
current liabilities and non-current liabilities in Consolidated Statement of Financial Position,
they are combining both figures from their parent and subsidiaries. In this case, both of the
Glomac Berhad and OCK Group Berhad follow these requirements as shown in its presentation
of Statements of Financial Position.

i. Non-current Liabilities (NCL) in Consolidated Statement of Financial Position

Non-current liabilities of Glomac Berhad consist of long-term liabilities and deferred tax
liabilities. As refer to Note 31 of Annual Report, their long-term liabilities are divided into:
Unsecured
Secured Liabilities
Liabilities
(a) Terms (b) Hire-purchase and lease (c) Revolving credits
loan payables
Combining Combining NCL of their parent Combining both secured and unsecured
NCL of and subsidiaries for its company NCL of their parent and subsidiaries from
their parent accounts company accounts to group accounts
and Present value of hire-purchase Secured NCL that Unsecured NCL that
subsidiaries and lease liabilities is analyses finalized long- finalized long-term
from according to: term portion is portion is having the
company  Current liabilities which only applicable to same figures for both
accounts to due within 12 months; and its group account its group and current
group  Non-current liabilities in 2018. accounts in 2017 and
accounts which due after 12 months 2018.

Non-current liabilities of OCK Group Berhad consist of borrowings, deferred tax

liabilities, trade payables, provision for liabilities, and post employment benefit liabilities. All
of these transactions recorded for its company accounts only.

ii. Current Liabilities in Consolidated Statement of Financial Position

Whereas for the current liabilities of Glomac Berhad, we will focus on amount due to subsidiary
companies and dividend payable.
The amount due from their subsidiary companies are recorded in amount due
from/(to) subsidiary and associated companies in Note 27 of Annual Report, which arose
mainly from trade transactions, assignment of debts, payment made on behalf and advances
granted and is unsecured and repayable on demand. It also shows that during the financial year,
significant transactions, which are determined on a basis as negotiated between the company
and its subsidiary companies.
As for OCK Group Berhad, the amount due from their subsidiary companies are
recorded in its trade and other payables in Note 28 of Annual Report which can be further
divided into:
 Accounts of amount due Categories of transaction Amounts in 2017 &
from subsidiary 2018
companies
Amounts owing to Non-trade in nature, unsecured, Only recorded in its
subsidiaries repayable upon demand in cash and company account in
bear interest at 4.6% per annum. 2017
Amounts owing to Non-trade in nature, unsecured, interest Only recorded in its
minority shareholders of free and repayable upon demand in group account in 2017
subsidiaries cash. & 2018
Amounts owing to Non-trade in nature, unsecured, Only recorded in its
directors of subsidiaries interest-free and repayable upon group account in 2017
demand in cash. & 2018

B. Accounting Policies which related to Liabilities

Based on business combination in Note 3 of Annual Report, the consideration for the acquisition
includes any asset or liability resulting from a contingent consideration arrangement,
measured at its acquisition-date fair value. Investments in Associated Company of Glomac
Berhad incorporated in these consolidated financial statements of its results and assets and
liabilities using the equity method of accounting, except when the investment is classified as
held for sale. It is initially recognized in the consolidated statement of financial position at cost.

As in Note 3 of Annual Report of OCK Group Berhad, the initial accounting for business
combination of one of the Company’s wholly-owned subsidiary involves identifying and
determining the fair values to be assigned to these companies’ identified assets, liabilities
and contingent liabilities and the cost of the combination. The business combination of this
subsidiary company has been accounted for using provisional values. The Group shall
recognise any adjustments to these provisional values upon completion of the purchase price
allocation (“PPA”) exercise within 12 months from the acquisition date.

iii. Inter-company Balances and Transaction in Consolidated Statement of Financial

Position
Intra-group trading and other transactions may result in members of the group owing
each other sums of money. These balances may be in the form of loans, receivables/payables,
current accounts, dividends payable/receivables. As the objective of a consolidated financial
statement of financial position is to disclose the total net assets employed by the group as a
single entity, the consolidated statement of financial position should not disclose and have to
be eliminated intra-group (or inter-company) balances as it is to be used to report
transactions that have been taken place with parties outside the group. This avoids double
counting of assets and liabilities that arise through transactions between members of the group.

For Glomac Berhad, all intra-group transactions, balances, income and expenses are
eliminated in full on consolidation, so all the related transactions or accounts are not shown in
Statement of Financial Position. As a prove, Note 17 & Note 18 of Annual Report of Glomac
summarised financial information below represents amounts before intragroup eliminations
in respect of each of the Group's subsidiary and associated companies.
 Whereas for OCK Group Berhad, intra-group balances and transactions, and any
unrealised income and expenses arising from intra-group transactions are eliminated in
preparing the consolidated financial statements. Unrealised gains arising from transactions with
equity-accounted associates are eliminated against the investment to the extent of the Group’s
interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains,
but only to the extent that there is no evidence of impairment. As a prove, OCK summarised
financial information (before intra-group elimination) of the Group’s material subsidiaries in
Note 15 (page 115) of its Annual Report.