FGV Annual Report 2014

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, trading, logistics, marketing, rubber processing, research and development activities and related agribusiness activities. 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 45, 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 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) Amendments to published standards and interpretations adopted by the Group and the Company as at 1 January 2014: • Amendments to FRS 132 ‘Offsetting Financial Assets and Financial Liabilities’ • Amendments to FRS 10 ‘Consolidated Financial Statements’, FRS 12 ‘Disclosure of Interests in Other Entities’ and FRS 127 ‘Separate Financial Statements’ – Investment entities • IC Interpretation 21 ‘Levies’ • Amendments to FRS 139 ‘Novation of Derivatives and Continuation of Hedge Accounting’ The adoption of the above amendments to published standards and interpretations did not have a significant financial impact to the Group and Company. (ii) Standards, amendments to published standards and interpretations to existing standards that are applicable to the Group and the Company but not yet effective and have not yet been early adopted: Effective for annual periods beginning on or after 1 January 2015 with earlier application permitted • Annual Improvements to FRSs 2010-2012 Cycle (Amendments to FRS 2 ‘Share-based Payment’, FRS 3 ‘Business Combinations’, FRS 8 ‘Operating Segments’, FRS 13 ‘Fair Value Measurement’, FRS 116 ‘Property, Plant and Equipment’, FRS 124 ‘Related Party Disclosures’ and FRS 138 ‘Intangible Assets’) • Annual Improvements to FRSs 2011-2013 Cycle (Amendments to FRS 1 ‘First-time Adoption of Financial Reporting Standards’, FRS 3 ‘Business Combinations’, FRS 13 ‘Fair Value Measurement’ and FRS 140 ‘Investment Property’) • Amendments to FRS 119 ‘Employee Benefits’ – Defined benefits plans: Employee contributions Introduction Performance Highlights About FGV Reports Financial Statements Others Strategy and Value Creation Performance Review & Progress Foreword to Shareholders Annual General Meeting Annual Report 2014 pg 177 NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2014