Interest Bearing Loans And Borrowings Accounting Essay

The names and inside informations of Miracle Electronics Limited during the fiscal twelvemonth till the day of the month of this study are shown below. The inside informations include each manager ‘s makings, instruction degree, past experiences and places.

Eng Lay Chuan

Chief Executive Officer and Managing Director

Miss Eng is a Maestro of Business Administration holder who graduated from University of Nottingham. She is a manager of Miracle Electronics Limited since March 2002 and appointed Chief Executive Officer ( CEO ) in July 2004. She has a considerable experience in large-scale planetary concern and expert in corporate reorganizing, undertaking analysis, direction, amalgamations and acquisitions. Besides that, she is a former Managing Director in Southcorp Limited from June 1998 to May 2000.

Goh Yoke See

Chief Operating Officer and Executive Director

Miss Goh joined Miracle Electronics Limited since February 2004 and appointed Chief Operating Officer in September 2005. She is graduated from Royal Melbourne Institute of Technology University and holds a PhD in Project Management. She has a huge experience in international concern which is 18 old ages ‘ experience in the production industry. Besides that, she is adept in supplying schemes and advice to company and she has held different leading functions in strategic, operational places in different states. She was former Chief Marketing Officer of TXU Corporation from July 2000 to November 2003.

Hoo Wen Li

Chief Financial Officer and Executive Director

Miss Hoo is the Maestro of International Finance holder who graduated from Deakin University and she besides is a member of Financial Planning Association in Australia. She become a manager of Miracle Electronics Limited since February 2005 and appointed Chief Financial Officer in July 2007. She has more than 15 old ages ‘ experience in the banking and finance industry and is a former President of the Business Council of Australia. She is adept in hazard direction and concern restructuration. Miss Hoo has been designated by The Board as the fiscal expert of the Risk and Audit Committee.

Director ‘s Report

The managers of Miracle Electronics Limited present their study together with audited fiscal statements of the Company for the fiscal twelvemonth ended 30 June 2010 and the Independent Audit Report thereon.

Directors

The managers of Miracle Electronics Limited at any clip during or since the terminal of the twelvemonth are:

Eng Lay Chuan

Goh Yoke See

Hoo Wen Li

Qualifications, experience, particular duties and other inside informations of the managers are presented at page 3 of this one-year study.

Overview of Company

Miracle Electronics Limited was formed in twelvemonth 1992 in Australia and has been the leader in the development and industry of electronic merchandises for a broad scope of consumer, concern, and industrial demands markets, particularly around Asia and Australia.

Chief Activities

The rule activities of Miracle Electronics Limited during the fiscal period were:

Manufacturing electronic merchandises for place and commercial usage.

Selling and retailing of electronic engineering merchandises around Asia and Australia.

Supply and service of electronic equipment for defence, air power and electrical safety markets ( Endeavour Limited 2009, p.14 ) .

Supplying merchandises fix and care services.

Directors ‘ Shareholdings

The involvement of the managers in portions and options of Miracle Electronics Limited as at the coverage day of the month were:

Number of Ordinary Shares

Eng Lay Chuan

2000,000

Goh Yoke See

1000,000

Hoo Wen Li

800,000

Directors ‘ Meetings

The figure of managers ‘ meetings held and the figure of meetings attended by each manager during the twelvemonth ended 30 June 2010 were:

Board

Audited account

Committee

Wage

Committee

Nomination

Committee

Operating

Activities

Number of Meeting

10

6

6

3

12

Directors ‘ Attendance

Eng Lay Chuan

10

6

6

3

12

Goh Yoke See

10

5

4

2

10

Hoo Wen Li

10

6

5

1

9

Dividends

The undermentioned dividend has been paid in relation to the twelvemonth ended 30 June 2010:

A dividend of $ 1300,000 which is $ 0.26 per portion was paid by the company on 25 August 2009. This dividend has been declared on 29 June 2009 and was non capable to farther mandate.

Alternatively of giving out interim dividend, bonus portion was issued from general modesty on 12 February 2010 to stockholders of one ordinary portion for each 5 portions held. These are issued and to the full paid to $ 4.50.

Operating and Financial Review

The current twelvemonth has been rather good for Miracle Electronics Limited, the company has achieved first-class growing in both gross revenues and net incomes. The current twelvemonth gross revenues gross has been increase bit by bit from $ XXX to $ 177,500,000 while the services gross has increased to $ 24,000,000 from $ YYY. This represents an addition of X % in gross revenues gross and Y % in services gross.

The company ‘s cyberspace net income after income revenue enhancement for the twelvemonth has besides increased quickly by Z % to $ 1,253,000, compared to $ ZZZ in the old twelvemonth due to a important lessening of cost of production as the company has changed its beginning of natural stuffs for some of its merchandises during the twelvemonth. It is believes that continued market growing will let the company to go on to better its entire net income in the hereafter.

Significant alteration in the province of personal businesss

Particulars of the important alterations in the province of personal businesss of the amalgamate entity during the fiscal twelvemonth are as follows:

Gross additions from $ XXX to $ 201,575,000.

Net income after revenue enhancement additions from $ XXX to $ 1,253,000

Dividend per portion decreases from 26 cent per portion to 24 cent per portion.

Entire Assets decreases from $ XXX to $ 112,685,000.

Equity additions from $ XXX to $ 60,910,000.

Significant events after balance day of the month

On 2 July 2010, a dividend of $ 0.24 per portion has declared by the managers of Miracle Electronics Limited. This is non capable to farther blessing and will be paid in the following fiscal twelvemonth.

On 1 October 2010, the managers recommended the company to transport out a new public portion issue in January 2011 for the interest of reduces the company ‘s debts. The sum of portions has been advised is 2,000,000 ordinary portions at an issue monetary value of $ 5.20.

Likely Development and Expected Result

On 27 August 2010, plans for repositing of several operations to an offshore location are announced by the managers of the company and the farther information for this program will be disclosed in October 2010 after treatments with related parties. The company is anticipating a decrease in the costs of operation of more than 15 % by implementing this program. Besides, it is besides expected to let the company to hold a encouragement in entire gross revenues gross and net income by X % and Y % . Anyhow, these programs would non be implemented until twelvemonth 2012.

Environment Duties

All the operations or activities of Miracle Electronics Limited are capable to ordinance of assorted governments such as Commonwealth, State, Territory and international environmental statute law. The company has formed a peculiar group of people which is the Safety, Health, Environment and Security Committee to supervise all the company operations and do certain they complied with the ordinances. The managers are satisfied that all relevant licences and licenses are held and that appropriate monitoring processs are in topographic point to guarantee conformity with those licences and licenses. There have been no known stuff breaches of the company ‘s license conditions during the twelvemonth ( Qantas Group 2010, p.45 ) .

Rounding

“ The sums contained in this study and in the fiscal statements have been rounded to the nearest dollars ( where rounding is applicable ) unless otherwise stated under the option available to the Company under ASIC Class Order 98/100. The Company is an entity to which the category order applies ” ( Wesfarmer Limited 2010, p.149 ) .

Damages and Insurance

Under the Miracle Electronics Limited Constitution, Miracle Electronics Limited indemnifies, to the extent permitted by jurisprudence, against any liability incurred by that individual as an employee of the company. All managers or officer will hold the benefit of an insurance to the fullest extent permitted by jurisprudence and as approved by the Board. The company has paid a premium of $ XXX for managers ‘ and officers ‘ liability insurance policies, which cover all managers and officers of the company during the twelvemonth ( Qantas Group 2010, p.45 ) .

Non-audit services

The non-audit services to the company during the twelvemonth ended 30 June 2010 were provided by the Ernst & A ; Young. An sum of $ 1250,000 was paid by the company to Ernst & A ; Young for consultancy work. “ The managers are satisfied that the proviso of non-audit services is compatible with the general criterion of independency for hearers imposed by the Corporations Act 2001 ” ( Endeavour Limited 2009, p.23 ) . The criterions in Corporations Act 2001 were applied due to the grounds below:

“ The non-audit services provided do non affect reexamining or scrutinizing the hearer ‘s ain work or moving in a direction or decision-making capacity for the company ;

All non-audit services were capable to the corporate administration processs and policies adopted by the Company and have been reviewed by the Audit Committee to guarantee they do non impact the unity and objectiveness of the hearer ” ( Wesfarmer Limited 2010, p.148 ) .

A transcript of the lead hearer ‘s independency declaration as required under subdivision 307C of the Corporations Act 2001 is included in page 23 ( Qantas Group 2010, p.45 ) .

Signed on behalf of the Board of Directors in conformity with a declaration of the Directors,

Goh Yoke See

Goh Yoke See

Chief Operating Officer and Executive Director

Sydney, 21 August 2010

Miracle Electronics Limited

Statement of comprehensive income

For the twelvemonth ended 30 June 2010

Notes

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Gross

5

201,575

thirty

Other Income

6

1,070

thirty

Other Expenses

7

( 199,955 )

thirty

Fiscal Cost

8

( 900 )

thirty

Net income Before Tax

1,790

thirty

Tax Expenses ( 30 % of Net income )

537

thirty

Net income

1,253

thirty

Other Comprehensive Income

thirty

Entire Comprehensive Income

1,253

thirty

Miracle Electronics Limited

Statement of Financial Position

As at 30 June 2010

Notes

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Assetss

Current Assetss

Cash and hard currency equivalents

1,512

thirty

Trade and Other Receivable

9

33,960

thirty

Inventories

15,980

thirty

Entire Current assets

51,452

thirty

Non Current Assetss

Property, Plants and Equipment

10

50,833

thirty

Good will

10,400

thirty

Entire Non-current Assetss

61,233

thirty

Entire Assetss

112,685

thirty

Liabilitiess

Current Liabilitiess

Trade and Other Payabless

11

22,798

thirty

Fiscal Liabilitiess

12

900

thirty

Short-run Borrowings

13

2,000

thirty

Commissariats

15

5,458

thirty

Current Tax Account payable

537

thirty

Entire Current Liabilitiess

31,693

thirty

Non-current Liabilitiess

Long-run Borrowings

14

18,000

thirty

Commissariats

15

2,802

thirty

Entire Non-current Liabilitiess

20,802

thirty

Entire Liabilitiess

52,495

thirty

Net assets

60,190

thirty

Equity

Share capital

16

19,975

thirty

General modesty

17

6,000

thirty

Retained gaining

18

34,935

thirty

Entire Equity

60,910

thirty

Miracle Electronics Limited

Statement of Changes in Equity

For the twelvemonth ended 30 June 2010

Share Capital

( in $ 000 ‘s )

General Reserve

( in $ 000 ‘s )

Retained Net incomes

( in $ 000 ‘s )

Entire Equity

( in $ 000 ‘s )

Balance as at 1/7/2009

10,500

32,962

43,462

Issues of portions

15,475

15,475

Bonus portions

4,500

( 4,500 )

Entire comprehensive income

1,253

1,253

Dividend paid

Balance as at 30/6/2010

19975

6000

34,935

60,910

Notes to the Financial Statement

1. Corporate Information

AASB 101.138 ( a )

AASB 101.125Miracle Electronics Limited is a limited company in Australia which was incorporated in twelvemonth 1992. Miracle Electronics Limited has experienced a rapid growing and became a populace listed entity on the Australian Stock Exchange ( ASX ) .

The chief topographic point of concern and its registered office of Miracle Electronics Limited is situated at:

AASB 101.138 ( B )

AASB 101.1257 Lowanna Place Hornsby,

New South Wales 2077,

Australia.

AASB 101.17

AASB 101.125The nature of the company ‘s operations and its chief activities are described and reported in Director ‘s study. The fiscal study of Miracle Electronic Limited for the twelvemonth ended 30 June 2010 was authorized for issue in conformity with a declaration of the Board of Directors on 15 September 2010.

AASB 101.112 ( a )

AASB 101. Aus 15.4

AASB101.117

AASB101.51 ( vitamin D )

AASB101.51 ( vitamin E )

AASB101. Aus 15.2

AASB101.16

2. Footing of Preparation

The company ‘s fiscal study is adopted Australian Accounting Standard criterions board ( AASB ) makes Australian Accounting Standards. It is applied by the company in conformity with the corporations Act 2001 in order to fix a fiscal study.

The fiscal statements have been prepared on a historical cost BASIC. On the other manus, the sum of the fiscal statement should be showed in Australian dollars and it must be rounded to the nearest 1000 dollars ( $ ‘000 ) .

The fiscal statements have been prepared in conformity with Australian Accounting Standards and are following with International Financial Reporting Standards ( IFRS ) .

( Endeavour Limited 2009, p.65 )

AASB 101.1173. Summary of Significant Accounting Policies

a ) Cash and Cash Equivalents

Cash and hard currency equivalents in the balance sheet comprise of hard currency at bank ( net of bank overdraft ) and in manus and short-run, extremely liquid investings or sedimentations with an adulthood periods of three months or less when purchased that are readily exchangeable to cognize sums of hard currency and which are capable to an undistinguished hazard of alterations in value ( Wesfarmers Limited 2010, p.76 ) .

B ) Trade and Other Receivables

AASB 101.122

AASB 101.125

AASB 101.118 ” Trade receivables, which by and large have 30-60 twenty-four hours footings, are recognized ab initio at just value and later measured at amortized cost utilizing the effectual involvement method, less an allowance for damage ” ( Endeavour Limited 2009, p.74 ) .

AASB 101.125

AASB 101.125An allowance for dubious debts is a contra history to histories receivable, which is used to gauge the sum of histories receivable that will unlikely to be collected in the hereafter and will be eliminated straight against the carrying sum and written off as bad debts when it is identified to stay bad. Bad debts appear as an disbursal in the comprehensive income statement and therefore cut down the net income ( Leo, Hoggett, Sweeting & A ; Radford 2009, pg.484 ) .

degree Celsius ) Inventories

AASB 101.118Inventories are calculated at the lower of cost and cyberspace realizable value. The cost of stock list points is usually determined on either the first-in first-out footing or leaden mean footing depending on the nature of stock list. This includes the cost of purchase of the natural stuffs and outgo incurred in retailing and wholesaling the finished goods. On the other manus, in the instance of finished goods, the fabrication cost includes an appropriate portion of production operating expenses based on normal operating capacity ( Dutch Lady Milk Industries Berhad 2009, p.29 ) .

Meanwhile, the net realizable value represents the estimated merchandising monetary value in the ordinary class of concern, less costs of completion and estimated merchandising disbursals necessary to be incurred in selling, merchandising and distribution ( Wesfarmers Limited 2010, p.76 )

AASB 101.118d ) Income Tax

Current revenue enhancement assets and liabilities shall be measured at the sum expected to be paid to the revenue enhancement governments harmonizing to the revenue enhancement Torahs of each legal power during the current and the anterior fiscal period. The revenue enhancement rates used to mensurate based upon the nonexempt income enacted at the terminal of the twelvemonth ( Genting Berhad 2010, p.73 ) .

vitamin E ) Property, Plant and Equipment

AASB 101.122

AASB 101.125

AASB 101.118Plant and equipment is stated at historical cost less accrued depreciation and any accrued damage losingss. All the cost of fixs and care will be charged to the income statement during the fiscal period that they are incurred.

Property, works and equipment are depreciated utilizing consecutive line footing to compose off the cost of the assets to their residuary values over their estimated utile lives. In add-on, if important parts of an point of the belongings, works and equipment have different utile lives, they have to be depreciated individually from the belongings, works and equipment. Besides, freehold land is non depreciated as it has infinite life residuary values over their estimated utile lives ( Dutch Lady Milk Industries Berhad 2009, p.28 ) .

Additions and losingss from the disposal of belongings, works and equipment are determined by comparing the net sum of the returns of disposal with the transporting sum of the disposal assets. The net different will be reported in the statement of comprehensive income as a addition or loss on disposal.

degree Fahrenheit ) Intangible Assets – Good will

AASB 101.118Goodwill is measured at cost less any accrued amortisation and impairment losingss. Impairment losingss of good will will non be reserved. Goodwill besides represents the difference between the cost of the acquisition and the just value of the net identifiable assets acquired ( Qantas Group 2010, p.57 ) .

“ Goodwill is allocated to cash-generating units for the intent of one-year damage proving. The allotment is made to those hard currency bring forthing units or groups of hard currency bring forthing units that are expected to profit from the concern combination in which the good will originate ” ( Genting Berhad 2009, p.70 ) .

g ) Interest-bearing Loans and Borrowings

AASB 101.118Interest-bearing loans and adoptions are ab initio recorded at the sum of just value of the consideration received less straight attributable dealing costs. The interest-bearing loans and adoptions are recorded at amortized cost after initial acknowledgment, utilizing the effectual involvement footing.

AASB 101.69

AASB 101.125Besides, adoptions will be classified as current liabilities if the company does n’t hold the right to set off colony of the liability for at least 12 months after the coverage day of the month ( Endeavour Limited 2009, p.81 ) .

H ) Trade and other payables

Trade and other payables are carried at amortized cost and are recorded when future payments are required as a consequence of purchases of assets or services.

AASB 101.122

AASB 101.118

AASB 101.122Besides, trade and other payables are non discounted because of their short term nature. Trade and other payables are besides liabilities and take topographic point when the company is required to do a payment for the goods and services provided to them earlier to the terminal of the fiscal twelvemonth that have n’t been paid. They are normally paid within 30 yearss of acknowledgment as the sums are unbarred ( Endeavour Limited 2009, p.81 ) .

I ) Commissariats

AASB 137.14Provisions are recognized when there is a present legal or constructive duty as a consequence of a past event. It is likely that an escape of resources incarnating economic benefits will be required to settle the duty and a dependable estimation can be made of the sum of the duty ( Genting Berhad 2009, p.73 ) .

AASB 137.53

AASB 137.54 ” When the Group expects some or all of a proviso to be reimbursed, for illustration under an insurance contract, the reimbursement is recognized as a separate plus but merely when the reimbursement is virtually certain. The disbursal associating to any proviso is presented in the statement of comprehensive income cyberspace of any reimbursement ” ( Endeavour Limited 2009, p.82 ) .

J ) Gross

AASB 101.118Revenue is measured at just value of the consideration received or receivable. Gross is recognized when the services have been rendered or the sum of gross flow into the company during the fiscal period. It includes merely the entity received and receivable the gross influxs of economic benefit by ain its history. Besides, these influxs will take to increase in equity and it is normally determined by understanding between the entity and the purchaser ( Genting Berhad 2009, p.74 ) .

Sale of Goods

Gross from the sale of goods is measured at just value of the consideration received or receivable, cyberspace of returns and allowances, trade price reductions and discounts. Gross from the sale of goods is recognized as the entities transferred the important hazard and wagess of the goods or public presentation of services to the purchaser and the economic benefits will be associated with the dealing flow into the entity ( Dutch Lady Milk Industries Berhad 2009, p.30 ) .

Rendering of Servicess

Gross from rendering of services is recognised when a contract is completed or still in advancement at describing day of the month or at the clip of completion of the contract and charge to the client ( Endeavour Limited 2009, p.84 ) .

Rental Earned

Gross from rental is usually recognized on a straight-line footing over lease term ( Yeo Hiap Seng Limited 2009, p.34 ) .

Sale of Development Properties

“ The gross revenues associating to belongings development undertakings are recognised increasingly as the undertaking activity advancements and are in regard of gross revenues where understandings have been finalised. The acknowledgment of gross revenues is based on the per centum of completion method and is consistent with the method adopted for net income acknowledgment ” ( Genting Berhad 2010, p.74 ) .

AASB 101.122

AASB 101.125 ( a ) 4. Significant Accounting Judgments, Estimates and Premises

a ) Appraisal of Short Term Provision

Provision for Warrantees ( Note 15 )

A proviso for warrantees is estimated based upon historical guarantee informations, expected public presentation of the merchandise and the attributed outgo for settling the guarantees ( Woolworth Limited 2009, p.82 ) .

Appraisal of Provision for Annual Leave ( Note 15 )

“ They are measured at the sums expected to be paid when the liabilities are settled. Expenses for non-accumulating ill leave are recognized when the leave is taken and are measured at the rates paid or collectible ” ( Endeavour Limited 2009, p.82 ) .

Appraisal of Provision for Long Service Leave ( Note 15 )

Long service leave is a liability which is calculated at the present value of expected hereafter additions in pay and salary rates including related onaˆ‘costs and expected colony day of the months in the accounting period ( Woolworth Limited 2009, p.82 ) .

B ) Appraisal of Long Term Provision

Provision for Damagess

Provision for amendss is recognized associating to the claim made against the company for breach patent. The expected sum to be paid is estimated based on legal advice. The instance was decided in tribunal in November 2009 and consequences in an increase in proviso payment.

5. Gross

Gross comprises of:

Detailss

2010

( in $ 000 ‘s )

2009

AASB 101.102

AASB 101.102

AASB 101.97 ( in $ 000 ‘s )

Gross saless Gross

177,500

thirty

Servicess Gross

24,000

thirty

Rental Gross

75

thirty

Sum

210,575

thirty

6. Other Income

Other income comprises of:

Detailss

2010

( in $ 000 ‘s )

2009

AASB 101.98 ( degree Celsius ) ( in $ 000 ‘s )

Addition from Sale of Machine

1,070

thirty

Sum

1,070

thirty

The machine had been used antecedently that was sold out during the fiscal period and addition worth $ 1070, 000 from the gross revenues.

7. Analysis of Expenses ( Excluding Finance Cost )

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Cost of gross revenues

134,600

thirty

Gross saless and rewards

25,970

thirty

Annual leave disbursal

3,350

thirty

Long service disbursal

868

thirty

Guarantees

1,800

thirty

Utility disbursal

34

thirty

Bonuss paid to gross revenues staff

1,275

thirty

Repairs & A ; care disbursals

2,980

thirty

Printing, postage and stationary

650

thirty

Ad and selling disbursals

6,300

thirty

Insurance disbursal

2,720

thirty

Depreciation expense-equipment

910

thirty

Depreciation expense-machinery

4,100

thirty

Depreciation expense-vehicles

1,880

thirty

Depreciation expense-buildings

375

thirty

Good will

600

thirty

Audit fee

630

thirty

Consultancy

1,250

thirty

Doubtful debts disbursal

950

thirty

Legal amendss expense

740

thirty

Assorted disbursals

7,713

thirty

Loss on sale of land

260

thirty

Sum EXPENSES

199,955

thirty

AASB101.103

AASB 101.102

AASB 101.97

AASB 101.97

AASB 101.97

AASB 101.103

AASB 101.102

AASB 101.97

AASB 101.103

AASB 101.102

AASB 101.97

AASB 101.102

AASB 101.102

AASB 101.102

AASB 101.102

AASB 101.118

AASB 138.1 ( a )

AASB138.1 ( B )

AASB 101.97

AASB 101.98 ( degree Fahrenheit )

AASB 101.102

AASB 101.98 ( degree Celsius )

Assorted disbursals includes of Christmas party for the terminal of the twelvemonth every bit good as other undistinguished cost incurred throughout the fiscal period.

8. Fiscal Cost

Fiscal cost comprises of:

Detailss

2010

( in $ 000 ‘s )

2009

AASB 101.97 ( in $ 000 ‘s )

Interest on Loan

900

thirty

Sum

900

thirty

AASB 101.779. Trade and Other Receivable

AASB 101.78 ( B ) Trade and Other Receivable comprise of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Histories Receivable

35,820

thirty

Less: Allowance for Doubtful Debts

2,420

thirty

33,400

thirty

Prepaid Insurance

560

thirty

Sum

33,960

thirty

AASB 101.77

AASB 101.78 ( a ) 10. Property, Plant and Equipment

Property, Plant and Equipment comprise of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Equipment ( at cost cyberspace of depreciation )

11,490

thirty

Machinery ( at cost cyberspace of depreciation )

13,640

thirty

Land ( at cost )

14,773

thirty

Building ( at cost cyberspace of depreciation )

10,930

thirty

Sum

50,833

thirty

AASB 101.7711. Trade and Other Payabless

Trade and Other Payables comprise of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Account collectible

21,368

thirty

Gross received in progress

1,430

thirty

Sum

22,798

thirty

12. Fiscal Liabilitiess

AASB 101.77Financial Liabilities comprise of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Accrual Interest

900

thirty

Sum

900

thirty

13. Short-run Borrowings

Short-run Borrowings comprise of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Loan collectible

2,000

thirty

Sum

2,000

thirty

14. Long-run Borrowings

Long-run Borrowings comprise of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Loan collectible

18,000

thirty

Sum

18,000

thirty

AASB 101.78 ( vitamin D ) 15. Commissariats

a ) Provisions comprise of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Provision for guarantees

3,740

thirty

Provision for one-year leave

2,720

thirty

Provision for long service leave

1,680

thirty

Provision for amendss

120

thirty

Sum

8,260

thirty

Current Provisions consist of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Provision for guarantees

2,618

thirty

Provision for one-year leave

2,720

thirty

Provision for amendss

120

thirty

Sum

5,458

thirty

Non-current Provisions consist of:

Detailss

2010

( in $ 000 ‘s )

2009

( in $ 000 ‘s )

Provision for guarantees

1,122

thirty

Provision for long service leave

1,680

thirty

Sum

2,802

thirty

Reconciliations of motions in commissariats:

Detailss

Guarantees

( in $ 000 ‘s )

Annual Leave

( in $ 000 ‘s )

Long Service Leave

( in $ 000 ‘s )

Damagess

AASB 137.84 ( a ) ( in $ 000 ‘s )

Balance as at 1/7/2009

2,400

2,220

1,050

AASB 137.84 ( B )

Extra commissariats made

1,800

3,350

868

AASB 137.84 ( degree Celsius ) 120

Sum used

( 460 )

( 2,850 )

( 238 )

AASB 137.84 ( vitamin D )

Fresh sum reserved

0

0

0

0

Balance as at 30/6/2010

3,740

2,720

1,680

120

AASB 101.85 ( a )

AASB 101.85 ( B ) B ) Nature of Short Term Provision and Expected Timing

Provision for Warrantees

The company has provided a 3-year guarantee on its merchandises and it is expected that 70 % of the proviso as at the coverage day of the month will be met following twelvemonth.

Provision of Annual Leave

“ Wages, rewards, paid one-year leave, committee paid and non-monetary benefits are expected to be settled within 12 months of the coverage day of the month in which the associated services are rendered by the employees of the company ” ( Endeavour Limited 2009, p.82 ) .

Provision for Long Service Leave

No long service leave is expected to be paid until February 2012.

degree Celsius ) Nature of Long Term Provision and Expected Timing

Provision for Damagess

Provision for amendss is expected to be reconciled after 12 months of the coverage day of the month. The proviso of harm are besides increased from $ 380,000 to $ 1000,000 consequence from the tribunal determination.

AASB 101.79 ( a ) ( two ) 16. Share capital

a ) Share capital

The balance of portion capital as at 30 June 2010 is 6,000,000 ordinary portions. It comprised of 5,000,000 ordinary portions issued in January 2007 at an issue monetary value of $ 3.10 and to the full paid in September 2009. The sum of portion capital is deducted due to $ 25,000 portions issued costs were incurred. On the other manus, 1,000,000 fillip portions are issued on 14 February 2010 from the general modesty and to the full paid at $ 4.50. Hence, the entire sum of portion for the twelvemonth is $ 19,975,000.

AASB 101.79 ( a ) ( four )

B ) Reconciliation of the figure of portions

2010

2009

Number of portions issued

Sum

( $ )

Number of portions issued

Sum

( $ )

Balance as at 1 July 2009 ( I )

5,000,000

15,475,000

thirty

thirty

Bonus portions issued

1,000,000

4,500,000

thirty

thirty

Balance as at 30 June 2010

6,000,000

19,975,000

thirty

thirty

( I ) The sum of portions issued has been deducted by $ 25,000 of portions issue costs.

AASB 101.79 ( B ) 17. General modesty

A general modesty is ever created through the transportation of maintained net incomes history. It normally is used to set aside the net incomes for some unanticipated events ( Leo, Hoggett, Sweeting & A ; Radford 2009, p. 108 ) . However, it besides can be used to pay out dividends or bonus portions. On 14 February 2010, the company issued 1,000,000 bonus portions from general modesty alternatively of dividends. Hence, the sum of general modesty is deducted by $ 450,000.

Detailss

2010

( $ )

2009

( $ )

Balance as at 1 July 2009

10,500,000

thirty

Bonus portions issued

( 450,000 )

thirty

Balance as at 30 June 2010

6,000,000

thirty

AASB 101.10618. Retained Net incomes

Detailss

2010

( $ )

2009

( $ )

Balance as at 1 July 2009

32,962,000

thirty

Entire comprehensive income for the twelvemonth

1,253,000

thirty

Balance as at 30 June 2010

34,215,000

thirty

AASB 101.10719. Dividends

On 25 August 2009, $ 1,300,000 of dividends was paid by the company. The dividend had been declared on the old accounting period and was non capable to farther blessing.

On 2 July 2010, a dividend of $ 0.24 per portion besides declared by the managers. Hence, the entire sum of dividend for 6,000,000 portions is $ 1,440,000. However, it can non be recognized yet as distributions to stockholders because it is declared after the coverage day of the month of fiscal twelvemonth.

AASB 110.2120. Events after Balance Sheet Date

a ) Declaration of dividend

On 2 July 2010, a dividend of $ 0.24 per portion is declared by the managers of company.

B ) Resettlement of several operations to an offshore location

Several programs are announced by the managers of the company on 27 August 2010 in order to better profitableness and cut down costs of company. Besides that, farther information will be provided in October 2010 after completed the treatment with related parties. By implementing the programs, the company is expected to cut down more than 15 % of the costs for the undermentioned twelvemonth after twelvemonth 2012.

degree Celsiuss ) New public portion issue

On 1 October 2010, the managers advised that the company planned to transport out a new public portion issue in January 2011 for the interest of cut down its debts. The sum of portions will be issued is 2,000,000 ordinary portions at an issue monetary value of $ 5.20.

Directors ‘ Declaration

In conformity with a declaration of the managers of Miracle Electronics Limited, we province that:

1. In the sentiment of the managers:

the fiscal statements, notes and the extra revelations included in the managers ‘ study, designated as audited, of the amalgamate entity are in conformity with the Corporations Act 2001, including:

Giving a true and just position of the amalgamate entity ‘s fiscal place as at 30 June 2010 and of its public presentation for the twelvemonth ended on that day of the month ; and

Complying with Australian Accounting Standards ( including the Australian Accounting Interpretations ) and the Corporations Regulations 2001 ( Wesfarmers Limited 2010, p.166 ) .

There are sensible evidences to believe that Future Machines Limited will hold the ability to pay its debts as and when they are due and become collectible ( Endeavour Limited 2009, p.227 ) .

2. The Directors have been given the declarations required by subdivision 295A of the Corporations Act 2001 from the Chief Executive Officer and the Chief Financial Officer for the twelvemonth ended 30 June 2010 ( Qantas Group 2010, p.104 ) .

On behalf of the Board of Directors

Goh Yoke See

Goh Yoke See

Chief Operating Officer and Executive Director

Sydney, 21 August 2010

Hearers ‘ Report

We conducted our audit in conformity with corporations Act 2001 complied by the Australian Accounting Standards. Besides, we were engaged to scrutinize the statement of comprehensive income and statement of alterations in equity for the twelvemonth ended on that day of the month, statement of fiscal place as at 30 June 2010, a sum-up of important policies, manager ‘s studies and notes to fiscal statement. Basically, these fiscal statements used to stand for a company ‘s direction. So, we are responsible to show sentiment on the fiscal study based on our audit. We should be after the audit in order to supply an effectual confidence about the sum and free from any mistake or fraud. An audit involves executing process to measure the accounting policies made by managers and show the overall fiscal statement. Therefore, we believed that our audit able to render the full sentiment about the company ‘s process and stated that we shall provides an appropriate and complete footing on our sentiment ( Bank of Tanzania 2005, p.11 ) .

Management ‘s duty

The managers should fix a just position presentation of the fiscal statements harmonizing to the Australian Accounting Standards. The Board of managers is responsible for the agreement and keeping the internal control of the company ‘s fiscal statement. The manager demand to guarantee that the readying and the presentation free from material misstatement, using sensible accounting policies and its fiscal personal businesss have been given in a dependable mode ( Nokia Corporation 2009, p.68 ) .

Auditor ‘s Opinion

In our sentiment, the fiscal study of Miracle Electronics Limited is in harmonizing with the Corporation Act 2001 which is includes:

Showing reasonably and accurately of the Miracle Electronics Limited fiscal place as at 30 June 2010 and the public presentation of the entity during the fiscal period stoping on that day of the month.

Prepared a fiscal study based on the Australian Accounting Standards and the Corporations Regulations 2001.

Ernst & A ; Young D.G Brown

Ernst & A ; Young D.G Brown

Spouse

Melbourne, 30 August 2010