FGV Annual Report 2013

Felda Global Ventures Holdings Berhad 191 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2013 1 GENERAL INFORMATION The Company is principally an investment holding company with investments primarily in oil palm plantation and its related downstream activities, sugar refining, manufacturing, logistics and others. The principal activities of the subsidiaries are stated in Note 22 to the financial statements. There have been no significant change in the nature of these activities of the Group and the Company during the financial year other than as disclosed in Note 56 to the financial statements. The Company is incorporated in Malaysia and listed on the Main Market of Bursa Malaysia Securities Berhad. The registered office and principal place of business of the Company is located at Level 42, Menara Felda, Platinum Park, No.11 Persiaran KLCC, 50088 Kuala Lumpur. 2 BASIS OF PREPARATION The financial statements of the Group and of the Company have been prepared in accordance with the Financial Reporting Standards (“FRS”) and the requirements of the Companies Act, 1965 in Malaysia. The Group includes transitioning entities and has elected to continue to apply FRS during the financial year. In the next financial year, the Group will continue to apply FRS. The Group will be adopting the new IFRS-compliant framework, Malaysian Financial Reporting Standards (“MFRS”) when the MFRS Framework is mandated by the Malaysian Accounting Standard Board (“MASB”). In adopting the new framework, the Group will be applying MFRS 1 “First-time adoption of MFRS”. The financial statements of the Group and of the Company have been prepared under the historical cost convention unless otherwise indicated in the individual policy statements in Note 3 to the financial statements. The preparation of financial statements in conformity with FRS requires the use of certain critical accounting estimates and assumptions. It requires the Directors to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from these estimates. It also requires management to exercise judgment in the process of applying the Group and the Company’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 5. (i) Standards, amendments to published standards and interpretations adopted by the Group and the Company as at 1 January 2013: • FRS 10 “Consolidated Financial Statements” • FRS 11 “Joint arrangements” • FRS 12 “Disclosures of Interests in Other Entities” • FRS 13 “Fair Value Measurement” • The revised FRS 127 “Separate Financial Statements” • The revised FRS 128 “Investments in Associates and Joint Ventures” • Amendments to FRS 101 “Presentation of Items of Other Comprehensive Income” • Amendment to FRS 7 “Financial Instruments: Disclosures” • Amendments to FRS 10, 11 & 12 “Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance” The adoption of the above standards, amendments to published standards and interpretations did not have a significant financial impact on the Group and the Company, and did not result in substantial changes in the Group’s accounting policies, except for the following standards which have an impact on the Group and the Company: • Amendment to FRS 101 ‘Presentation of Items of Other Comprehensive Income’ requires entities to separate items presented in ‘Other Comprehensive Income’ (OCI) in the statement of comprehensive income into two groups, based on whether or not they may be recycled to profit or loss in the future. • FRS 12 “Disclosures of Interests in Other Entities” sets out the required disclosures for all forms of interest in other entities, including joint arrangements, associates, structured entities and other off balance sheet vehicles. It requires entities to disclose information that helps financial statement readers to evaluate the nature, risks and financial effects associated with the entity’s interests in subsidiaries, associates, joint arrangements and unconsolidated structured entities.